A California jury found Liberty Mutual violated the California Fair Employment and Housing Act by discriminating against plaintiff Joy Slagel, a former case manager for Liberty Mutual for more than 30 years, based on her age. The jury rendered a verdict in favor of Slagel in the amount of $103M – $20M in noneconomic compensatory damages and $83M in punitive damages.
Slagel alleged, in her 2017 lawsuit, that treatment of older staff changed when a new regional claims manager took over in 2012. She alleged that within several years of that leadership change, "multiple employees in their 50s and 60s were forced to resign, and nearly all workers over age 40 were either terminated or pressured to leave. Of about 120 employees in the office, only two were older than 40".
Slagel testified as to a series of adverse employment actions during that period. Team-wide problems were attributed to her individual performance, she was ignored in the office, and then she was singled out in meetings.
In March 2015, for the first time in her employment, Slagel received a "needs improvement" performance review. When, later that year, she
received a customer service award for her management of large client's claim, "during the ceremony, the regional claims manager allegedly said she 'got lucky' and it 'would never happen again.'"
Slagel alleged her blood pressure condition worsened in 2016, which her doctor linked to workplace stress, so she took a short-term disability leave from April 19 to June 29, 2016, approved by Liberty Mutual.
When she returned on June 30, her parking card and access badge no longer worked. She was then called into a meeting and terminated effective immediately, with no reason given, and was later replaced by a white male in his late 20s, according to the complaint.
Slagel's attorneys argued that Liberty Mutual's "internal investigation into Slagel's work was manufactured to remove older, higher-paid employees." Kenneth Araullo "Liberty Mutual to pay $103 million in age bias case" https://www.insurancebusinessmag.com (Dec. 10, 2025).
Commentary
When new management enters the workforce, the risk of claims can rise.
Different expectations and management styles can be perceived as unfair, personal, and grounded in protected class characteristics. This is especially true in the case of long-term, successful employees who are suddenly subjected to negative employment actions and singled-out for ostracism.
To help avoid the risk, make sure new managers are onboarded carefully. Then, arrange for meetings with the new manager and subordinates. Have an open discussion about the uncomfortableness of change and that changes are coming, in addition to different evaluation methods and metrics. Encourage discussions and input from subordinates. Encourage an open door policy so that subordinates can feel free to discuss issues with the new manager easily.
