Globe Life Inc.
09/27/2024 | Press release | Distributed by Public on 09/27/2024 05:02
Material Event Form 8 K
Item 8.01 Other Events.
Globe Life Inc. ("Globe Life" or the "Company") has been notified by the Equal Employment Opportunity Commission ("EEOC") that the EEOC conducted an investigation of charges filed against the Company and/or its subsidiary, American Income Life Insurance Co. ("AIL") by five former sales agents and one current sales agent who were affiliated with State General Agent ("SGA") Simon Arias. The EEOC asserts that there is reasonable cause to believe the six complainants were discriminated against on the basis of sex, and that one complainant was also discriminated against on the basis of race. In addition, the EEOC asserts that there is reasonable cause to believe that a class of female workers affiliated with the same SGA were subject to unlawful conduct which also constitutes a pattern-or-practice of discrimination. The Company has policies in place that prohibit discrimination of any form and takes any allegations of such conduct seriously.
The EEOC's investigative findings are not binding on the Company, and the EEOC's procedures provide for a conciliation process that could lead to a potential resolution. If no resolution is achieved, the EEOC may elect to file a lawsuit in federal court on behalf of the workers based on the alleged statutory violations. Under Title VII of the Civil Rights Act of 1964 ("Title VII"), the EEOC's authority is limited to employees, not independent contractors, and as part of its findings the EEOC has concluded that the sales agents affiliated with the SGA were employees of the Company and/or AIL. The Company disagrees with this conclusion. Numerous courts have determined that AIL sales agents are independent contractors, not employees. In addition, three of the six complainants have asserted Title VII claims against AIL in private litigation, and those claims have been dismissed with prejudice. In the event the EEOC elects to pursue any claims in court, the Company intends to defend against any such lawsuit vigorously. While no assurances can be made, at present management does not believe that it is reasonably possible or probable that these matters will result in a material loss to the Company.