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Women win suit against State Farm.

State Farm Insurance Co. settled charges by a group of female plaintiffs that the company had discriminated against them in recruiting and hiring sales agents in California. The settlement came about 3 years after the Federal District Court ruled against the company.

The 1988 settlement covered 1,113 women who applied for sales jobs with the company from July 1974 to December 1987. Under the settlement, State Farm, for the next 10 years, will reserve 50 percent of new sales agent jobs in California for women. This is the same quota the company has been using in California during the last 2 years. The settlement also allocates $1.3 million to be divided equally among the three original plaintiffs, and permits other plaintiffs to seek damages to be determined later. The plaintiffs' attorney claimed that the total damages could be the highest in the history of the Civil Rights Act of 1964, but this was "highly speculative" by the company's attorney.

Women held two of State Farm's 1,454 sales agent jobs in California in 1974, and 65 of 1,847 jobs in 1981.
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Author:Ruben, George
Publication:Monthly Labor Review
Date:Sep 1, 1988
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