Equal Employment Opportunity Commission v. Allstate Insurance , 778 F.3d 444 ( 2015 )


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  •                                         PRECEDENTIAL
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    ___________
    No. 14-2700
    ___________
    EQUAL EMPLOYMENT OPPORTUNITY COMMISSION,
    Appellant
    v.
    ALLSTATE INSURANCE COMPANY
    __________
    On Appeal from the United States District Court
    for the Eastern District of Pennsylvania
    (D.C. No.2-01-cv-07042)
    District Judge: Honorable Ronald L. Buckwalter
    ___________
    Argued January 14, 2015
    Before: HARDIMAN, SCIRICA and BARRY,
    Circuit Judges.
    (Filed: February 13, 2015)
    Paul D. Ramshaw [Argued]
    Equal Employment Opportunity Commission
    131 M Street, N.E.
    Washington, DC 20507
    C. Felix Miller
    Equal Employment Opportunity Commission
    1222 Spruce Street, 8th Floor
    St. Louis, MO 63101
    Iris A. Santiago-Flores
    Equal Employment Opportunity Commission
    801 Market Street, Suite 1300
    Philadelphia, PA 19107
    John V. Gorman
    Coleen M. Meehan
    Morgan, Lewis & Bockius
    1701 Market Street
    Philadelphia, PA 19103
    Attorneys for Plaintiff-Appellant
    Donald R. Livingston [Argued]
    Akin, Gump, Strauss, Hauer & Feld
    1333 New Hampshire Avenue, N.W., Suite 400
    Washington, DC 20036
    Katherine M. Katchen
    Akin, Gump, Strauss, Hauer & Feld
    2001 Market Street
    Two Commerce Square, Suite 4100
    Philadelphia, PA 19103
    2
    Richard C. Godfrey
    Jordan M. Heinz
    Sallie G. Smylie
    Kirkland & Ellis
    300 North LaSalle Street
    Chicago, IL 60654
    Erica Zolner
    Kirkland & Ellis
    601 Lexington Avenue
    New York, NY 10022
    Attorneys for Defendant-Appellee
    Rae T. Vann
    Norris, Tysse, Lampley & Lakis
    1501 M Street, N.W., Suite 400
    Washington, DC 20005
    Attorney for Amici Curiae in Support of Defendant-
    Appellee
    ____________
    OPINION OF THE COURT
    ____________
    HARDIMAN, Circuit Judge.
    This appeal comes to us following a summary
    judgment entered by the United States District Court for the
    Eastern District of Pennsylvania in favor of Allstate Insurance
    Company. In 1999, Allstate decided to reorganize its business
    and terminate the at-will employment contracts of some 6,200
    sales agents, offering them the opportunity to work as
    independent contractors. As a condition of becoming
    independent contractors, agents were required to sign a
    3
    release waiving existing legal claims against Allstate. The
    Equal Employment Opportunity Commission sued Allstate,
    claiming that the company violated federal antiretaliation
    laws. The District Court disagreed and the EEOC appealed.
    We will affirm.
    I
    As the District Court rightly noted, the history of this
    case is “lengthy and convoluted.” Romero v. Allstate Ins. Co.,
    
    1 F. Supp. 3d 319
    , 332 (E.D. Pa. 2014). We won’t repeat that
    history in full because it is so thoroughly explained in Judge
    Buckwalter’s tour de force in Romero and in his opinion now
    under review. See Romero v. Allstate Ins. Co. (EEOC), 3 F.
    Supp. 3d 313 (E.D. Pa. 2014). Instead, we shall summarize
    the facts relevant to this appeal.
    A
    Over the past thirty years, Allstate has changed the
    way it sells insurance. In the early 1980s, agents worked out
    of Sears stores or company-owned offices under an
    employment contract designated R830. Allstate introduced
    the Neighborhood Office Agent Program in 1984, purportedly
    because it faced “flat productivity and the aggressive use of
    local independent contractor sales agents by its competitors.”
    Allstate Br. 7. New agents hired pursuant to the
    Neighborhood Program signed a contract designated R1500,
    while existing agents had the choice of transferring to that
    contract or continuing their employment under the R830
    contract. The Neighborhood Program allowed agents to
    secure their own office space, manage their own expenses,
    and invest money in their agencies; it did not give them
    transferable interests in their accounts, however, which
    remained the property of Allstate. Under both the R830 and
    R1500 contracts, Allstate agents were at-will employees and
    4
    were not entitled to any severance pay in the event that they
    were “terminated under the terms of any group
    reorganization/restructuring benefit plan or program[.]”
    
    Romero, 1 F. Supp. 3d at 336
    , 397–98.
    In 1990, the company introduced a third business
    model, the Exclusive Agency Program, pursuant to which all
    new Allstate agents worked as independent contractors under
    a contract called R3001. In that capacity, Allstate agents had
    transferable property interests in their books of business and
    earned higher commissions than the R830 and R1500
    employee agents, but they were neither reimbursed for office
    expenses nor provided employee benefits. Existing employees
    had the opportunity to apply to convert to independent
    contractor status as part of the Exclusive Agency Program,
    but they received no conversion bonus and had to repay any
    outstanding office expenses advanced by Allstate. They did,
    however, gain property rights in the accounts they serviced as
    employee agents, which became transferable after five years.
    According to Allstate, the Exclusive Agency Program
    emerged as the company’s most productive business model.
    Meanwhile, a settlement between Allstate and the Internal
    Revenue Service required Allstate to more closely supervise
    the operations of its Neighborhood Program agents in order to
    preserve their status as employees for tax purposes.
    Concerned about the inefficiency of running several different
    agency programs, Allstate decided to shift completely to the
    independent contractor model and abandon the R830 and
    R1500 programs. Accordingly, in November 1999, the
    company announced its Preparing for the Future Group
    Reorganization Program, pursuant to which some 6,200
    employee agents would be terminated the following year.
    5
    In connection with their termination, the employee
    agents were offered four choices: (1) conversion to
    independent contractor status (the Conversion Option); (2)
    $5,000 and an economic interest in their accounts, to be sold
    by September 2000 to buyers approved by Allstate (the Sale
    Option) (3) severance pay equal to one year’s salary (the
    Enhanced Severance Option); or (4) severance pay equal to
    thirteen weeks’ pay (the Base Severance Option). Employees
    who chose the Conversion Option received a bonus of at least
    $5,000, were not required to repay any office-expense
    advances, and acquired transferable interests in their business
    two years after converting. All employees who chose not to
    convert and left the company were bound by noncompetition
    covenants in the original R830 and R1500 contracts.
    Allstate required those who selected any of the first
    three options to sign a release of all legal claims against the
    company related to their employment or termination,
    including discrimination claims arising under Title VII of the
    Civil Rights Act of 1964, the Age Discrimination in
    Employment Act (ADEA), and the Americans with Disabilities
    6
    Act (ADA).1 The Release covered only claims that had
    accrued by the time the terminated employees signed it, not
    1
    The Release stated:
    In return for the consideration that I am
    receiving under the Program, I hereby release,
    waive, and forever discharge Allstate Insurance
    Company, its agents, parent, subsidiaries,
    affiliates, employees, officers, shareholders,
    successors, assigns, benefits plans, plan
    administrators, representatives, trustees and
    plan agents (“Allstate”), from any and all
    liability, actions, charges, causes of action,
    demands, damages, entitlements or claims for
    relief or remuneration of any kind whatsoever,
    whether known or unknown, or whether
    previously asserted or unasserted, stated or
    unstated, arising out of, connected with, or
    related to, my employment and/or the
    termination of my employment and my R830 or
    R1500 Agent Agreement with Allstate, or my
    transition to independent contractor status,
    including, but not limited to, all matters in law,
    in equity, in contract, or in tort, or pursuant to
    statute, including any claim for age or other
    types of discrimination prohibited under the
    Age Discrimination in Employment Act of
    1967, Title VII of the Civil Rights Act of 1964,
    the Americans With Disabilities Act, the
    Employee Retirement Income Security Act
    (“ERISA”), the Illinois Human Rights Act, and
    the West Virginia Human Rights Act as those
    acts have been amended, or any other federal,
    7
    future claims, and it did not bar them from filing charges with
    the EEOC, which many did. Almost all the terminated
    employee agents signed the Release, and thousands of them
    chose the Conversion Option.
    B
    Despite Allstate’s efforts to avoid litigation, several
    former employee agents filed individual and putative class
    actions in the District Court seeking to invalidate the Release
    and alleging discriminatory discharge, retaliation, ERISA
    violations, breach of contract, and breach of fiduciary duty.
    
    Romero, 1 F. Supp. 3d at 358
    . The EEOC filed a civil action
    of its own that sought a declaratory judgment invalidating the
    Release on the ground that Allstate illegally retaliated against
    its employee agents by allowing them to continue their
    careers with the company only if they waived any
    discrimination claims. 
    Id. The District
    Court granted
    summary judgment to Allstate in both cases, 2007 WL
    state, or local law or ordinance or the common
    law. I further agree that if any claim is made in
    my behalf with respect to any matter released
    and waived above, I hereby waive any rights I
    may have with respect thereto and agree not to
    take any payments or other benefits from such
    claim. I understand that this release and waiver
    does not apply to any future claims that may
    arise after I sign this Release or to any benefits
    to which I am entitled in accordance with any
    Allstate plan subject to ERISA by virtue of my
    employment with Allstate prior to my
    employment termination date.
    App. 379.
    8
    1811197 (E.D. Pa. June 20, 2007), but we vacated those
    rulings because they were inadequately reasoned and
    insufficiently supported by evidence in the record, 344 F.
    App’x 785 (3d Cir. 2009) (per curiam). We remanded and
    ordered that the cases be reassigned to a different district
    judge and that the parties be permitted to conduct further
    discovery. 
    Id. at 788,
    790.
    On remand, the district judge to whom the cases were
    reassigned consolidated the cases for administrative purposes
    and heard new motions for summary judgment. Romero, 1 F.
    Supp. 3d at 360. In an opinion concerning the employee
    agents’ claims, the District Court granted Allstate summary
    judgment in part but held that trial was needed to determine
    whether the Release was signed knowingly and voluntarily
    and whether it was unconscionable. 
    Romero, 1 F. Supp. 3d at 419
    . In a separate opinion, the District Court granted Allstate
    summary judgment in the Commission’s retaliation suit.
    
    EEOC, 3 F. Supp. 3d at 316
    . The District Court rejected each
    of the Commission’s theories of retaliation, holding that
    Allstate’s requirement that agents choosing the Conversion
    Option waive their claims was not facially retaliatory because
    the policy did not discriminate on the basis of any protected
    trait, 
    id. at 326;
    and that Allstate had not specifically
    retaliated against agents who spurned the Release because,
    among other reasons, refusing to sign a release did not
    constitute “protected activity” under the antiretaliation
    statutes, 
    id. at 329–30.2
    The EEOC filed this timely appeal.
    2
    The Court also rejected theories of “anticipatory
    retaliation,” 
    EEOC, 3 F. Supp. 3d at 334
    –35, and coercion, 
    id. at 336;
    see 42 U.S.C. § 12203(b). The Commission conceded
    at oral argument that these claims are not at issue on appeal.
    9
    II
    The District Court had subject matter jurisdiction
    under 28 U.S.C. §§ 1331 and 1345. Our jurisdiction is based
    on 28 U.S.C. § 1291.3
    Exercising plenary review over the District Court’s
    summary judgment, we will affirm only if, viewing “the
    underlying facts and all reasonable inferences therefrom in
    the light most favorable to the party opposing the motion,” we
    conclude that a reasonable jury could not rule for the
    nonmoving party. Blunt v. Lower Merion Sch. Dist., 
    767 F.3d 247
    , 265 (3d Cir. 2014) (quoting Pa. Coal Ass’n v. Babbitt,
    
    63 F.3d 231
    , 236 (3d Cir. 1995)).
    III
    Title VII, the ADEA, and the ADA proscribe
    discrimination in employment based on several personal
    characteristics. See 42 U.S.C. § 2000e-2(a) (race, color,
    religion, sex, national origin); 29 U.S.C. § 623 (age); 42
    3
    The District Court’s summary judgment was an
    appealable “final decision” despite the pendency of the
    Romero matter because that case was consolidated with the
    EEOC’s action for administrative purposes only. See 
    Romero, 1 F. Supp. 3d at 360
    . Although we follow a “case-by-case
    approach” in determining whether a final order in one of
    multiple consolidated cases is immediately appealable,
    Bergman v. City of Atlantic City, 
    860 F.2d 560
    , 566 (3d Cir.
    1988), our precedents indicate that immediate appeal in one
    case is appropriate when the cases have not been
    “consolidated for discovery and trial or for all purposes,” id.;
    see Bogosian v. Gulf Oil Corp., 
    561 F.2d 434
    , 441 (3d Cir.
    1977).
    10
    U.S.C. § 12112 (disability). They also prohibit employers
    from retaliating against employees who oppose or complain
    about discriminatory treatment. See Burlington N. & Santa Fe
    Ry. Co. v. White, 
    548 U.S. 53
    (2006). The antiretaliation
    provisions “are nearly identical,” and “precedent interpreting
    any one of these statutes is equally relevant to interpretation
    of the others.” Fogleman v. Mercy Hosp., Inc., 
    283 F.3d 561
    ,
    567 (3d Cir. 2002). Employers may not “discriminate against
    any individual because such individual has opposed any act or
    practice made unlawful by [the employment-discrimination
    statutes] or because such individual made a charge, testified,
    assisted, or participated in any manner in an investigation,
    proceeding, or hearing” under the employment-discrimination
    statutes. 42 U.S.C. § 12203(a) (ADA); see also 42 U.S.C.
    § 2000e-3(a) (Title VII); 29 U.S.C. § 623(d) (ADEA). A
    prima facie case of illegal retaliation requires a showing of
    “(1) protected employee activity; (2) adverse action by the
    employer either after or contemporaneous with the
    employee’s protected activity; and (3) a causal connection
    between the employee’s protected activity and the employer’s
    adverse action.” 
    Fogleman, 283 F.3d at 567
    –68 (quoting
    Krouse v. Am. Sterilizer Co., 
    126 F.3d 494
    , 500 (3d Cir.
    1997)).
    The EEOC offers a few reasons why we should hold
    that Allstate unlawfully retaliated against its terminated
    employee agents. First, the Commission contends that the
    Release does not fall within the well-established rule that
    employers can require releases in exchange for post-
    termination benefits. EEOC Br. 21–24. Second, it argues that
    Allstate’s conduct was per se retaliatory because the company
    “withh[e]ld a privilege of the employees’ employment—the
    offer in the conversion option to continue their careers as
    Allstate agents—if they refused to release all their claims.”
    11
    
    Id. at 20.
    Alternatively, the EEOC claims Allstate retaliated
    against the employee agents who refused to sign the Release
    by denying them the option to continue their careers with the
    company as independent contractors. According to the
    Commission, the holdouts’ refusal to waive their claims
    constituted “protected opposition activity” that prompted
    Allstate to withhold the Conversion Option, an adverse
    employment action. 
    Id. at 32–35.
    We first address the general
    validity of agreements like Allstate’s Release before turning
    to the Commission’s two theories of retaliation.
    A
    It is hornbook law that employers can require
    terminated employees to release claims in exchange for
    benefits to which they would not otherwise be entitled. See,
    e.g., Mark A. Rothstein et al., 2 Employment Law § 9.22 (5th
    ed. 2014). Nothing in the employment-discrimination statutes
    undermines this rule—in fact, Congress enacted detailed
    requirements governing employee releases of ADEA claims
    in the Older Workers Benefit Protection Act of 1990
    (OWBPA). 29 U.S.C. § 626(f); see Oubre v. Entergy
    Operations, Inc., 
    522 U.S. 422
    , 426–27 (1998). Title VII and
    ADA claims are likewise subject to waiver by terminated
    employees. See Alexander v. Gardner-Denver Co., 
    415 U.S. 36
    , 52 (1974) (“[P]resumably an employee may waive his
    cause of action under Title VII as part of a voluntary
    settlement[.]”); Rivera-Flores v. Bristol-Myers Squibb
    Caribbean, 
    112 F.3d 9
    , 12 (1st Cir. 1997) (“We conclude that
    such releases are permissible under the ADA[.]”). The EEOC
    concedes, as it must, the legality of such releases. EEOC Br.
    17, 20–21, 23; Reply Br. 1, 13.
    But even when particular requirements have not been
    imposed by statutes like the OWBPA, releases can be invalid
    12
    for various reasons. For example, they must be knowingly
    and voluntarily signed4 and cannot waive future claims.5 In
    addition, an employee who signs a release must receive
    consideration in return. See, e.g., 29 U.S.C. § 626(f)(1)(D);
    Long v. Sears Roebuck & Co., 
    105 F.3d 1529
    , 1538 (3d Cir.
    1997); Rothstein, supra, § 9.22.
    The EEOC begins by arguing that the well-settled rule
    that releases of claims are generally valid does not apply to
    the situation presented in this appeal. EEOC Br. 21. The
    Commission’s argument goes like this: the only consideration
    adequate for a release of claims is “severance benefits,” and
    Allstate’s offer of an option to sell insurance as an
    independent contractor does not qualify because the employee
    agents “were not terminated in any normal sense.” 
    Id. at 22–
    23 (“[T]he conversion option was not a ‘severance’ benefit,
    but rather the opportunity [for the agents] to continue their
    Allstate careers.”). There are a few problems with the
    Commission’s postulate.
    For starters, the notion that the Conversion Option was
    inadequate consideration for the Release is remarkably
    4
    See 
    Gardner-Denver, 415 U.S. at 52
    n.15. This issue
    remains pending in the Romero case. 
    See supra
    Section I-B.
    5
    See Adams v. Philip Morris, Inc., 
    67 F.3d 580
    , 585
    (6th Cir. 1995) (“An employer cannot purchase a license to
    discriminate.”); Rothstein, supra, § 9.22; see, e.g., Gardner-
    
    Denver, 415 U.S. at 51
    –52 (“[A]n employee’s rights under
    Title VII are not susceptible of prospective waiver.”).
    Allstate’s Release did not purport to waive future claims. See
    App. 379 (“I understand that this release and waiver does not
    apply to any future claims that may arise after I sign this
    Release[.]”).
    13
    counterintuitive. The EEOC concedes that the Sale Option
    and the Enhanced Severance Option, both of which also
    required the employees to sign the Release, were valid. 
    Id. at 34–35.
    It nevertheless contends that the Conversion Option—
    which was chosen by the vast majority of the terminated
    agents—was illegal. According to the Commission, Allstate
    could have complied with the antiretaliation statutes by
    simply firing all its employee agents for good, instead of
    giving them the opportunity to sell Allstate insurance in a
    different capacity. We are confident that federal laws
    designed to protect employees do not require such a harmful
    result.
    Second, the Commission’s argument that the
    Conversion Option was inadequate consideration for the
    Release is contrary to the undisputed facts of this case. The
    EEOC suggests that Allstate gave the terminated agents
    essentially nothing in exchange for releasing their claims. See
    EEOC Br. 23–24 (“[T]he Program, instead of offering them
    severance benefits, required them to release all their claims
    against the company in order to continue performing the same
    services for Allstate that they had been performing for
    decades.”). In fact, each employee agent who signed the
    Release did so in exchange for something “in addition to
    anything of value to which the individual already [was]
    entitled[.]” § 626(f)(1)(D). The agents were entitled to neither
    continued employment (because they were at-will employees
    under the R830 and R1500 contracts) nor severance pay
    (because they were terminated pursuant to a group
    reorganization program). Moreover, even though Allstate
    allowed employee agents to convert to independent-
    contractor status during the decade preceding the 2000
    restructuring, the Conversion Option was significantly more
    advantageous because it: (1) offered guaranteed conversion,
    14
    whereas Allstate had previously retained discretion to deny
    conversion; (2) came with a bonus; (3) excused repayment of
    any outstanding office-expense advances; and (4) gave the
    converting agent a transferable interest in his or her business
    after two years, rather than five. See id.; Allstate Br. 39. Thus,
    it is clear that Allstate’s Conversion Option offered
    terminated employee agents something of value to which they
    were not otherwise entitled.
    Finally, the EEOC admits that it knows of not “a single
    decision holding that it is unlawful for an employer to require
    its employees to release all their claims in order to continue
    working for the company.” EEOC Br. 25. Nevertheless, it
    claims that Allstate is similarly bereft of authority supporting
    its position—except for one case, Isbell v. Allstate Insurance
    Co., 
    418 F.3d 788
    (7th Cir. 2005), which it accuses Allstate
    of misreading. EEOC Br. 25. There, Doris Isbell was
    terminated pursuant to Allstate’s reorganization plan and
    refused to sign the Release, opting for the Base Severance
    Option. 
    Isbell, 418 F.3d at 791
    –92. She sued Allstate for
    retaliation, but the Seventh Circuit rejected her claims. 
    Id. at 792–93.
    The EEOC rightly notes that Isbell does not carry the
    day for Allstate here insofar as the Seventh Circuit rejected
    Isbell’s retaliation claims on the ground that she was not
    terminated for discriminatory reasons, which is inapposite to
    the Commission’s claim that Allstate’s contingent offer of
    conversion was discriminatory retaliation. See 
    id. at 793;
    EEOC Br. 26–27. Nonetheless, we note that the Seventh
    Circuit expressly acknowledged Isbell’s retaliation theory,
    which mirrored the EEOC’s theory here, and found it lacking.
    See 
    Isbell, 418 F.3d at 797
    (“Allstate did not retaliate against
    Isbell when it refused to hire her [as an independent
    contractor] after she refused to sign a release of liability.”).
    15
    Like Isbell, the EEOC here fails to articulate any good
    reason why an employer cannot require a release of
    discrimination claims by a terminated employee in exchange
    for a new business relationship with the employer. We
    acknowledge the Commission’s concerns about the prospects
    of employers trading releases for new business opportunities
    and terminated employees facing “financial pressure” when
    offered such a deal. EEOC Br. 32. But the EEOC fails to
    explain why this financial pressure is more offensive to the
    antiretaliation statutes than the pressure one is bound to feel
    when required to sign a release in exchange for severance
    pay.6 In sum, we are not persuaded by the Commission’s
    efforts to arbitrarily limit the forms of consideration
    exchangeable for a release of claims by a terminated
    employee.
    B
    Having determined that Allstate’s conduct conformed
    with the settled rule that employers can exchange
    consideration for releases of claims, it is unsurprising that the
    Commission’s theories of retaliation are invalid. The
    Commission posits that Allstate violated the antiretaliation
    statutes first by creating a policy that employee agents who
    6
    The Commission also fails to show that its nightmare
    scenario—employers using a cycle of layoffs, releases, and
    rehiring to immunize themselves from suit—is a valid
    concern. See EEOC Br. 24–25. There is no indication that
    American employers have done or will do this to insulate
    themselves from the employment-discrimination laws,
    probably because such schemes would destroy employee
    morale, compromise business goodwill, and serve little
    economic purpose.
    16
    refused to sign the Release would not be permitted to
    continue their Allstate careers, and then by enforcing this
    policy and actually withholding the Conversion Option from
    those agents. Under both theories, the EEOC alleges that the
    “protected employee activity” in question was the refusal to
    sign the Release and the associated “adverse action by the
    employer” was Allstate’s withdrawal of the Conversion
    Option.7 
    Fogleman, 283 F.3d at 567
    . In fact, the EEOC has
    established neither protected activity nor an adverse action.
    The antiretaliation statutes identify two forms of
    protected employee activity: “oppos[ing] any act or practice
    made unlawful by” the employment-discrimination laws and
    initiating or “participat[ing] in any manner in an
    investigation, proceeding, or hearing under” those laws. E.g.,
    42 U.S.C. § 12203(a). The Commission argues that refusing
    to sign a release constitutes opposition to unlawful
    discrimination, but we disagree. In our view, such inaction
    does not communicate opposition sufficiently specific to
    qualify as protected employee activity. See EEOC v.
    SunDance Rehab. Corp., 
    466 F.3d 490
    , 501 (6th Cir. 2006)
    (expressing skepticism that declining to sign a release could
    7
    The Commission occasionally wavers by suggesting
    that the real adverse action was the termination of the
    employee agents—or at least that their termination was
    functionally equivalent to withdrawal of the Conversion
    Option. See, e.g., EEOC Br. 35. We recognize that dismissing
    an employee qualifies as “adverse action” in common
    parlance, but the relevant action for retaliation purposes was
    the denial of conversion to the agents who refused to sign the
    Release.
    17
    be protected activity); see also Barber v. CSX Distrib. Servs.,
    
    68 F.3d 694
    , 702 (3d Cir. 1995) (“A general complaint of
    unfair treatment does not translate into a charge of illegal age
    discrimination.”). Because Allstate’s Release barred its
    signatories from bringing any claims against Allstate
    concerning their employment or termination, employee agents
    who refused to sign it might have done so for any number of
    reasons unrelated to discrimination. Indeed, as Allstate notes,
    the plaintiffs in the Romero case brought claims for breach of
    contract and breach of fiduciary duty. Allstate Br. 51.
    Accordingly, the EEOC cannot show that any adverse action
    taken by Allstate was triggered by opposition to unlawful
    discrimination, dooming its retaliation case at the outset.
    Even had the Commission been able to establish
    protected activity, its argument would fail for lack of an
    adverse employment action. As we have mentioned, the
    terminated agents were not entitled to convert to independent
    contractor status. 
    See supra
    Section III-A. And the
    Commission has cited no legal authority for the proposition
    that an employer commits an adverse action by denying an
    employee an unearned benefit on the basis of the employee’s
    refusal to sign a release. There is significant support,
    meanwhile, for the opposite proposition. See 
    SunDance, 466 F.3d at 502
    (collecting cases).
    The EEOC leans heavily on EEOC v. Board of
    Governors, 
    957 F.2d 424
    (7th Cir. 1992), but that case only
    clarifies the Commission’s failure in this case to satisfy the
    two essential retaliation elements just discussed. In Board of
    Governors, the Seventh Circuit invalidated a provision of a
    collective bargaining agreement that suspended an
    employee’s contractual right to an internal grievance
    proceeding as soon as the employee initiated a judicial or
    18
    administrative proceeding concerning his grievance. 
    Id. at 426–27.
    The Court held that the CBA provision violated the
    ADEA’s antiretaliation provision because it authorized the
    employer to strip an employee of a “contractual right” and
    adversely alter a “condition of his employment” whenever the
    employee sought relief under the ADEA in an external forum.
    
    Id. at 430.
    In that case, the Commission identified a clear
    protected activity (i.e., initiating a discrimination charge in an
    external forum) and paired it with an employer action that
    deprived employees of something to which they were entitled
    (i.e., suspending the right to internal grievance proceedings).
    The EEOC fails to muster the same showing here, which
    makes all the difference.
    IV
    In offering each of its employee agents the Conversion
    Option, Allstate followed the well-established rule that
    employers can require terminated employees to waive
    existing legal claims in order to receive unearned post-
    termination benefits. The EEOC has neither given us reason
    to craft an exception to this rule nor articulated a valid
    retaliation claim under the relevant statutes. We therefore
    hold that Allstate did not violate the federal antiretaliation
    laws by requiring that employee agents sign the Release in
    order to avail themselves of the Conversion Option.
    Accordingly, we will affirm the judgment of the District
    Court.
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