Allred moved to Los Angeles and married her second husband, Raymond Allred, in 1968. They were divorced in 1987. She taught in the turbulent Watts section of Los Angeles and became the first full-time female staff member in United Teachers of Los Angeles, the union representing Los Angeles's teachers. The experience stirred her interest in civil rights and collective bargaining prompted her to embark on a career in law, and in 1974, Allred graduated with honors from Loyola Marymount University in Los Angeles with a law degree. Soon after, she entered a law firm partnership with her classmates Nathan Goldberg and Michael Maroko. Allred, Maroko, Goldberg and Ribakoff grew during the 1970s and 1980s into a thirteen-lawyer firm with annual revenues exceeding $2.5 million.
Allred is perhaps the most flamboyant and well-known member of her firm. She has achieved notoriety and name recognition through staged press conferences and demonstrations publicizing and dramatizing the cause she is championing at the time. She also accepts controversial cases that naturally attract media attention. During her years in practice, she has successfully sued Los Angeles County to stop the practice of shackling and chaining pregnant inmates during labor and delivery; put a halt on the city of El Segundo from quizzing job applicants about their sexual histories, represented a client who was turned down for a job as a police officer after a six-hour lie detector exam that included questions about her sex life, and sued a dry cleaning establishment for discrimination because it charged more to launder women's shirts than men's.
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