Puffer v. Allstate Insurance

255 F.R.D. 450, 2009 U.S. Dist. LEXIS 3533, 2009 WL 136097
CourtDistrict Court, N.D. Illinois
DecidedJanuary 15, 2009
DocketNo. 04 C 5764
StatusPublished
Cited by10 cases

This text of 255 F.R.D. 450 (Puffer v. Allstate Insurance) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puffer v. Allstate Insurance, 255 F.R.D. 450, 2009 U.S. Dist. LEXIS 3533, 2009 WL 136097 (N.D. Ill. 2009).

Opinion

MEMORANDUM OPINION AND ORDER 1

SIDNEY I. SCHENKIER, United States Magistrate Judge.

Katherine Puffer (“plaintiff’ or “Ms. Puffer”) filed this suit on behalf of herself and a putative class alleging that Allstate Insur-[455]*455anee Company (“Allstate”) has carried out a nationwide pattern or practice of sex discrimination in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and the Equal Pay Act, 29 U.S.C. §§ 206 and 207 (doc # 13: Am. Compl. at 11-12, 14). Plaintiff has moved to certify the following class under Federal Rule of Civil Procedure 23(b)(2) and (3): “All female managers holding the position of Division or Department manager and above who worked or continue to work at Allstate Protection at any time between May 9, 2001 and the present and who have been and continue to be injured by the alleged discriminatory employment policies and practices” (doc. # 126:- Pl.’s Class Cert. Mem. at 21). The parties have conducted extensive fact and expert discovery, and have submitted equally extensive briefing, on plaintiffs motion for class certification. For the reasons that follow, plaintiffs motion for class certification (doc. # 125) is denied.

I.

We begin our discussion with a brief introduction to Allstate’s organizational structure, followed by a summary of Ms. Puffer’s employment history at Allstate.

A.

Prior to 2002, Allstate organized its Property and Casualty (“P & C”) business into four operational areas: Claims, Finance, Product Operations, and Distribution (doc. # 200: Def.’s Opp’n to Class Cert. at 2). In October 2002, Allstate created a new organization called Allstate Protection (“Protection”). Protection is the largest business unit within Allstate, employing approximately 80 percent of all Allstate personnel (Pl.’s Class Cert. Mem. at 7-8). Allstate Protection consists of different Areas of Responsibility (“AORs”), each headed by a Vice President or Senior Vice President, i.e., “senior managers” (id.). The four largest AORs within Protection are Claims, Product Operations, Protection Finance, and Marketing/Distribution (id. at 8). Allstate Protection also includes Encompass, three different marketing groups, and the Technology Shared Services Group (Def.’s Opp’n to Class Cert, at 2). During the class period, women constituted 61 percent of the employees in the four largest AORs within Protection, 36 percent of the managerial positions (Salary Grades (“Grades”) 63 and above), and 10 percent of the senior manager positions (id. at 2-3; Pl.’s Class Cert. Mem. at 7-8).

Employee responsibilities, supervisors, office locations, and salary grade vary widely among the four primary AORs in Protection (Def.’s Opp’n to Class Cert, at 6-7). The Claims AOR employs attorneys, human resources and IT professionals, claims investigators, claims and subrogation service managers, and project managers (id.). Two-thirds of the putative class worked or works in Claims (id. at 7). The Product Operations AOR, by contrast, focuses on pricing, strategy, product and design, risk management, and research analytics, and consists of, among other employees, pricing directors and actuaries (id. at 8). Likewise, the Finance AOR houses a different set of employees, with their own set of technical and professional skills; and in the Marketing/Distribution AOR, sales-related skills and experience are most important (id. at 7-8).

In addition to the variety of job types in which members of the putative class are employed, plaintiffs proposed class includes a wide spectrum of managerial level positions. Eighty percent of the putative class consists of women employed in entry-level, non-officer management positions at Grades 63 and 64 or below (id. at 6 n. 5). However, the putative class also includes women employed in senior manager positions at Grade 77, director positions at Grade 78, appointed officer positions (Assistant Vice President and Assistant Field Vice President) at Grade 80, and elected officer positions (Vice President, Field Vice President, and Senior Vice President) who are at Grade 90 and above (id. at 5-6). There are only 200 officer positions at Allstate in a company of 38,000 employees (id. at 3).

Supervisors are required to meet with each manager who reports directly to them at the beginning of the year to discuss major job responsibilities and individual performance goals for the manager over the next 12 [456]*456months (id. at 9). At the end of the year, the supervisor fills out a performance development summary (“PDS”) for each manager who reports to them, based on the major job responsibilities and individual performance goals set for him or her the previous year (id.). The numeric ratings of the manager’s major responsibilities are weighted and then tabulated to reach an overall evaluation rating (id. at 9-10). The supervisor then submits the PDS to his or her own direct superi- or for input, review, and approval before it goes to the evaluated manager in a process called “one-over-one” review (id.). In addition, Allstate evaluates its managers based on 17 critical success factors (“CSFs”) as well as Quality Leadership Management Surveys, which are filled out by the employees who directly report to the managers’ being reviewed (id. at 10-11). These evaluations are factored into decisions on merit or promotional increases in salary for managerial employees.

Protection is allotted a percentage amount of money each year to be used for merit or promotional salary increases (Pl.’s Class Cert. Mem. at 16). Allstate’s Human Resources department (“HR”) distributes annual salary administration guidelines to management supervisors, which set forth an overall range of salary increases in terms of a percentage amount for each performance and salary level (id.). Using these guidelines, together with the evaluations described above, Allstate determines merit and promotional increases for all managerial employees. This process is done through HR, with input from Protection management (id.). In Grades 63 to 78, pay decisions are based on the manager’s performance and salary range (Def.’s Opp’n to Class Cert, at 12). Only managers in Grades 77 and above are bonus-eligible (id.). Allstate’s 12-person senior management team is only involved in pay and promotion decisions for the 200-member officer group (id. at 11).

Allstate generally does not post openings for managerial positions (Pl.’s Class Cert. Mem. at 11). Rather, an employee’s supervisor is responsible for recommending employees for promotion when positions become vacant (Def.’s Opp’n to Class Cert, at 13). Allstate employees, however, many change jobs without going through formal promotion procedures through use of the “broadbanding system” adopted by Allstate in 2000 (Pl.’s Class Cert. Mem. at 10-11). Broadbanding groups hundreds of jobs with similar levels of responsibility and accountability into the same “job band,” with each job band containing positions covering a wide salary range (id. at 2).

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Bluebook (online)
255 F.R.D. 450, 2009 U.S. Dist. LEXIS 3533, 2009 WL 136097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puffer-v-allstate-insurance-ilnd-2009.