$18 million settlement reached in Mohawk case
by Dalton Daily Citizen
Apr 10, 2010 | 2033 views | 2 2 comments | 10 10 recommendations | email to a friend | print
CALHOUN — After battling in court for six years, Mohawk Industries and attorneys for current and former employees who sued claiming their wages were depressed by the hiring of illegal workers have settled the suit for $18 million.

Attorneys for the plaintiffs will seek a third of the award, according to Howard Foster, one of those attorneys.

Approximately 48,000 former and current hourly Mohawk employees will be able to file claims from the remaining portion of the fund.

“If they are a legal worker, they will receive a portion of the settlement depending on the number of hours they worked at Mohawk during the class period,” he said.

If 48,000 workers divide $12 million, that would work out to $250 per worker.

Most of the settlement will be contributed by Zurich American Insurance Co., Mohawk’s insurance carrier.

Mohawk has also agreed to conduct training regarding the verification of employment eligibility.

Mohawk did not admit to any of the plaintiffs’ claims.

“Mohawk is pleased to have reached a settlement that allows the company to put behind it the expense and distraction associated with this case,” said company attorney Juan Morillo.

U.S. District Court Judge Harold L. Murphy in Rome will now be asked to OK the settlement.

Mohawk shares ended Friday at $55.12, up $1.16.

Comments
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Carpetemployee
|
April 11, 2010
I would like to thank those brave Mohawk employees who had the courage to file this suit.

Now some of the Shaw and the other smaller companies guys need to follow them.You got done the same way.

terry1960
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April 11, 2010
This is no where near enough. Mohawk should have to increase wages now, to make up the difference. The average hourly wage dropped at least 50 cents an hour, from where it should be now, when they started importing illegal workers, and not just in the carpet industry.
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