Mohawk employees getting claim forms as a result of settlement
by Doug Walker
May 19, 2010 | 1901 views | 2 2 comments | 9 9 recommendations | email to a friend | print
One month after Mohawk Industries agreed to settle a long simmering lawsuit that claimed it hired illegal aliens in a bid to depress wages, employees of the giant floor-covering manufacturer are beginning to receive their claim forms.

One of the caveats to the settlement, which was approved by U.S. District Court Judge Harold L. Murphy of Rome, involves the number of claims that get filed.

Zurich American Insurance Co., which agreed to cover $13 million of the $18 million settlement, had stipulated that if more than 50 percent of the estimated 48,000 affected employees file legitimate claims, then it has the right to opt out of the settlement.

Such a maneuver would send the case right back to the federal courts, where arguments and briefs were heard more than six years before the settlement was reached.

Juan P. Morillo, an attorney with the Clifford Chance law firm that represented Mohawk, said after the settlement was reached that if Zurich American had not agreed to participate at the level it did, then Mohawk would not have settled the case. Mohawk did not agree to any wrongdoing as part of the terms of the settlement.

“We’re all very curious to see what will happen,” said Howard Foster, the Chicago-based attorney for the plaintiffs. He said the amount of each individual claim payment would be based on the person’s length of employment with the company.

Foster said the settlement does have a minimum amount employees would receive, but could not recall the specific figure.

Mohawk has agreed to pay $5 million directly from the corporate cash accounts, an amount that is basically equivalent to what the plaintiffs’ attorneys will receive.

While not admitting any wrongdoing, a large part of Mohawks’ incentive to settle the case centers around racketeering laws. If a jury sided with plaintiffs, Mohawk could have been forced to pay three times the damages.

Part of the claims documents requires Mohawk employees to submit photo identification as well as documentation that established eligibility to work in the United States at the time the person was employed by Mohawk.
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Sugarvalley
|
May 21, 2010
Lawyers $16 million

48,000 workers $250 each

Total paid: $18 million

If judges were not lawyers, things would not be lopsided.

Suggestion: Check all candidates' vocation/occupation. If lawyer, vote for the other candidate or none at all.

America is plagued with 1,125,000 lawyers for 309 million people. Japan has 34,000 lawyers for about 125 million citizens.

SirDude
|
May 21, 2010
Sounds like the ones who will be profiting are going to be the lawyers. It's a shame that we can't have some changes dealing with lawyers and their compensation, but that'll never happen.

No need to send a message to Washington...Obama and his crew are supported by the Lawyer Lobby and Union Lobby, while the Republicans by the Gun Lobby and Business Lobby.

Both sides take dirty money from Lobyists. You can cry out rail against one side, but you're not being fair.

The Mohawk employees deserve every dime they can get. Only problem is, the company will play the system, and the lawyers will get rich.
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