The lawsuit, which claims the Calhoun based company hired illegal immigrants in an effort to keep wages low, was given an administrative closure by Judge Harold Murphy in U.S. District Court in Rome on Thursday. Plaintiffs are now eligible to receive payments, Murphy said.
To read the settlement click here.
Ronan Doherty, attorney for the plaintiffs, said settlement checks could arrive as soon as September.
While the day was a victory for Doherty and the other plaintiffs, it was also bittersweet.
Shirley William was the first to file the lawsuit more than six years ago. She died in July 2007.
“It is very emotional for us because Shirley was one of the first people I talked to. She was a grandmother when we met, she had a lot of spunk,” said attorney Doherty, an Atlanta-based attorney.
Williams, along with three other Mohawk employees, alleged the company violated the federal and Georgia Racketeer Influenced and Corrupt Organizations Acts by hiring illegal immigrants. Plaintiffs also alleged that Mohawk harbored illegal workers who were hired and supplied by temporary employment agencies.
Mohawk has agreed to set up an $18 million fund, with $5 million coming from the company and Zurich American Insurance Co., which agreed to cover the additional $13 million. The company must also review hiring policies and set up a hotline for employees to report violations.
While Mohawk has not admitted any wrongdoing, the company did agree to settle, avoiding a potential jury trial, according to the settlement. Employees with a legitimate claim who were employed by Mohawk for more than 90 days will receive a minimum of $150. Employees will receive more based on their length of time with the company.
“It’s been a hard battle,” Doherty said.
Judge Murphy commended both parties on reaching a settlement.
Mohawk employees will receive claims forms in the mail and have until Aug. 9 to postmark them to be returned.
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