The EEOC asked for a summary judgment on the issue of whether Allstate’s rehiring policy targeting a sales force largely older than 40 was in violation of the Federal Age Discrimination in Employment Act. A District Judge ruled in the EEOC’s favor and the lawsuit will now head to a jury trial.

The argument will hinge on whether Allstate’s practices fall under an exception to the Federal Age-Discrimination Act, one that allows for reasonable policies based on factors other than age.

In 2000, Allstate launched a program it called “Preparing for the Future Group Reorganization Plan.” As a part of this program, the company fired its sales force and then offered to make them independent contractors. Part of the new program stipulated that former Allstate agents could not be rehired in other, non-agent positions for one year. In the lawsuit, the EEOC claims that more than 90% of the agents were older than 40, making the hiring policy in violation of the ADEA.

In his ruling, the District Judge found that the EEOC “provided sufficient evidence to show a disparate impact on the protected group” of agents 40 years of age or older. Allstate argued for a dismissal, saying that its policy was based on factors other than age. The Judge denied Allstate’s request and ordered the case to trial.

The EEOC filed a lawsuit against Allstate in 2001, alleging the company unlawfully required its agents to forego their rights to employment discrimination claims if they waned to continue to be employed with Allstate after the 2000 reorganization. The outcome of that case has still not been decided.