Running a Shop Law Finance Labor Rate

Allstate Agrees to Settle Short-Pay Lawsuits

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Aug. 21, 2013—Allstate has agreed to provide full payment to Ray Gunder, owner of Gunder’s Auto Center in Lakeland, Fla., to settle several pending labor rate short-pay lawsuits.

Gunder recently filed lawsuits on behalf of 12 customers, claiming that the quality of service at his shop demands a higher labor rate. According to Gunder, Allstate agreed to reimburse the shop with the full labor rate difference and all related attorney fees.

Full payment for the lawsuits was paid last week. 

“I am very appreciative of the way this was handled by Allstate,” Gunder said. “My hope is that this is truly a new way Allstate does business nationwide and they speak to the entire industry with one voice. Not all shops are the same and as such they deserve to be compensated based upon the quality of their service and offerings.”

Gunder currently has similar lawsuits against GEICO and State Farm that are still in process.

“We’ll be in depositions all week with GEICO representatives and have continued lawsuits with State Farm,” Gunder said. “Perhaps [Allstate] agreeing to our rates will encourage GEICO and State Farm to pay rates and allowances that are ‘fair and reasonable.’”

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