Ex-Allstate employee awarded eight-figure settlement

Huge payoff for fired insurance business employee

Ex-Allstate employee awarded eight-figure settlement

Insurance News

By Lyle Adriano

A former employee of Allstate Insurance who was fired after his arrest has been awarded damages in a settlement.

A San Diego jury awarded Michael Tilkey, 55, about $2.6 million in actual damages and almost $16 million in punitive damages in his wrongful termination lawsuit, the San Diego Union-Tribune reported.

In 2016, Tilkey was terminated by Allstate following his arrest in Arizona the year prior. He had been arrested in relation to an argument he had with his then-girlfriend. The charges against him were later dismissed.

After his termination, Tilkey said that his subsequent attempts to apply for other jobs were hindered when potential employers discovered the reasons why he had been fired.

An Allstate employee for 30 years, Tilkey said he feels “vindicated after three years battling this.”

Tilkey’s lawyer, Joann Rezzo, argued that the job termination violated state labor law, which prohibits employers from considering arrest records that do not result in a conviction when considering termination.

“It vindicates him, it vindicates his reputation,” Rezzo commented on the award. “It sends a message to corporate America that if you are going to do biz in California, you must comply with California law.”

A spokesperson for Allstate said that the company disagrees with the verdict and plans to appeal. The company also said in court documents that it has a “strict policy” that allows for the immediate termination of employees “who engage in threats or acts of physical harm or violence.”

 

Keep up with the latest news and events

Join our mailing list, it’s free!