Regardless, you vastly overestimate how much effort is put into hiring. The vast majority of companies would never study the effectiveness of IQ tests to know if they are useful or not. If they had a gut feeling that an IQ test would be helpful they would try it on that basis, except they wouldn't try it because they've read online that IQ test use is illegal; meaning that it is considered to be legally indefensible.
So it's difficult to see how to square what was previously said on this thread, about IQ testing in employment being "illegal" or "legally indefensible". Those are trivially falsifiable claims. Every HR department in the world knows that.
What I said, quoting from earlier, was "considered to be legally indefensible". Whether or not it is legally defensible is for the courts to decide, but it is clear that it is considered to be. Unfortunately your full comment didn't arrive, but what we did get was "This is just a big Internet myth" which appears to have you echoing that it is considered to be legally indefensible. You cannot have a "myth" without belief.
Where the law is abundantly clear (YMMV, law is jurisdictional) is that hiring criterion must be related to the job. It asserts that selection tests must be reasonable, bona fide, and tailored to actual job duties. That does not strictly prohibit IQ tests, but there are effectively zero jobs where an IQ test would be seen as reasonable, bona fide, and tailored to the actual job. Whatever exception you can find is just that: an exception.
Moreover, on JEPS, Allstate does not use JEPS in my jurisdiction. There is no public knowledge as to why, but legal compliance would be a reasonable explanation. Use of JEPS may even be illegal.
Perhaps you had a different company in mind?
Could it be that you are using "IQ test" as some catchall term for any type of cognitive test? You could define it that way in a vacuum, but that is not how it is being used here. The initial comment was clear about how it was being used. In context, "IQ test" was being used to refer to IQ tests that are academically recognized as IQ tests (WAIS, Stanford–Binet, etc.). HR department pet assessments do not fall under that.
The reason more companies don't IQ test is that it's an ineffective tool for candidate screening. We all intuitively get that as software developers: imagine hiring off an IQ test rather than just having someone write code.