Allstate Corp. emerged victorious in a ruling from the National Labor Relations Board declaring its exclusive agents independent contractors rather than employees – a decision that prohibits collective bargaining, according to the Associated Press.
NLRB Chicago Regional Director Elizabeth Kinney decreed that agents are contractors because they hire their own employees, advertise themselves and decide the amount of work they will assume.
The Office & Professional Employees International Union had pushed for a ruling declaring agents employees.
Allstate proclaimed a reorganization in 1999, redesignating some 6,500 agents as contractors as opposed to employees. The cost-cutting move removed some benefits for agents, but grew commissions for insurance sales.
In a statement, Allstate reports it will continue an open line of communication to address agents’ concerns.
Topics Agencies
Was this article valuable?
Here are more articles you may enjoy.
Big Food Readies New Strategy Against RFK Jr. Push in States 
Rivian Agrees to Pay $250 Million to Settle IPO Fraud Lawsuit 
World’s Largest Retirement Community Taps Muni Market to Help Build More Homes 
Best Agency to Work For – Overall Winner: Robertson Ryan Insurance 
