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Writer's pictureStephen Wick

Justice Department Reaches Settlement with State Farm Over Discrimination Claims

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) found that a corporate office of State Farm in Richardson, Texas, retaliated against an employee who raised concerns about citizenship status discrimination.
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The Justice Department announced today that it has secured a settlement agreement with State Farm Mutual Automobile Insurance Company in response to violations of the Immigration and Nationality Act (INA) related to workplace discrimination.


The Civil Rights Division’s Immigrant and Employee Rights Section (IER) found that a corporate office of State Farm in Richardson, Texas, retaliated against an employee who raised concerns about citizenship status discrimination.


According to court documents, State Farm terminated the worker and placed her on a “do not hire” list after she opposed the company's rejection of her valid documentation, which included a Permanent Resident Card and a notice from the Department of Homeland Security extending the card's validity.


“Workers have the right to oppose perceived discrimination, without retaliation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring workers are able to speak up about discrimination without fear of unlawful retaliation.”


The Justice Department determined that the termination was a direct result of the employee's complaint regarding discrimination and the rejection of her documentation.


As part of the settlement, State Farm will pay civil penalties to the United States and provide over $30,000 in backpay to the affected worker. The agreement also mandates that State Farm conduct training for its employees on the INA's anti-discrimination provisions, revise its employment policies, and adhere to ongoing departmental monitoring and reporting requirements.


The IER is tasked with enforcing the INA’s anti-discrimination provisions, which prohibit discrimination based on citizenship status and national origin in hiring, firing, and recruitment, as well as retaliation and intimidation against employees who raise concerns about discriminatory practices.


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