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Posted on: Apr 22, 2016


Farmers Insurance Settles $4.1 Million Equal Pay Class Action

Nearly 300 female attorneys reached a tentative $4.1 million class/collective action settlement on April 13 with employer Farmers Insurance Company to resolve discrimination and equal pay claims in promotions. In Coates et al. v. Farmers Group Inc. et al., case number 5:15-cv-01913-LHK, in the U.S. District Court for the Northern District of California, San Jose Division, plaintiffs filed their notice of motion and unopposed motion for preliminary approval of class/collective action settlement and memorandum. The proposed settlement provides that Farmers will pay $4,105,000 consisting of individual cash payments to class members, service awards, and payment to California’s Labor and Workforce Development Agency as civil penalties. Farmers also agreed to a three-year injunction including a full review of compensation-related policies and practices by an independent Human Resources Consultant, an agreement to certain hiring and promotion benchmarks designed to increase the representation of women at all levels in claims litigation, and other business changes.

This article was submitted by Patricia Orloff Erdmann, Office of the Attorney General.

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