GEICO Discriminates Against Employees on FMLA Leave, Class Action Alleges

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Government Employees Insurance Company (GEICO) is the defendant in a proposed class action filed over the insurance agency’s allegedly discriminatory policies with regard to workers who file for protected leaves of absence under the Family and Medical Leave Act (FMLA). The case alleges GEICO’s pay methods fail to account for certain workers’ protected leaves of absence and make it all but impossible for them to earn the monthly bonuses that are part of their compensation packages.

The lawsuit explains that sales employees earn monthly bonuses based on both their “Power Selling Ratio” (PSR) score and their performance as compared to the monthly sales quota. A PSR score, the case says, measures an employee’s performance based on how many policies he or she has sold compared to other sales employees and determines whether the employee will be eligible to receive a monthly bonus. The amount of the bonus, however, is determined by the number of policies sold above the department’s monthly sales quota, the case explains, noting that an employee only receives a bonus if his or her PSR score is high and his or her sales meet or exceed GEICO’s quota. The suit points out that both factors are affected by a worker’s attendance during the selling period and are negatively impacted when an employee misses work.

The plaintiff, who allegedly filed for FMLA leave due to “acute stress and anxiety,” says GEICO discriminates against employees on leave by failing to prorate their PSR scores and sales quotas. “If an employee is on protected leave pursuant to the FMLA for a large portion of a month, despite it being protected leave, it is highly unlikely (if not impossible) for the employee to reach quota,” the complaint reads, adding that his or her PSR score is similarly affected as the result of missing work time. Workers on FMLA leave will have their pay negatively impacted, the case argues, while those who aren’t on FMLA leave receive their normal wages. From the complaint:

“In failing to take protected leaves into consideration in determining compensation entitlements (e.g., bonus amounts and entitlements), and failing to make adjustments to the quota and PSR score for disability related absences (e.g., reduced work schedules or absences provided as accommodations for disabilities), Defendant is making the use of protected leaves and leaves due to disabilities a negative factor in Plaintiff’s, and other employees’, employment actions (up to and including demotion and termination).”