Appeals Court Gives Workers Go Ahead to Sue Mohawk

Atlanta, GA, September 29, 2006--A federal appeals court ruled Thursday that one of the world's largest carpet makers can be sued under racketeering laws over allegations of hiring thousands of illegal immigrants and depressing wages. The lawsuit was sent back to the U.S. 11th Circuit Court of Appeals for reconsideration this summer after attorneys argued the case before the U.S. Supreme Court. "From my perspective, it's a huge victory," said lead attorney Harry Foster said from his Chicago office. "We get to go to trial." Former and current workers at Mohawk Industries claim they received lower wages than workers at other companies in the Dalton area, which is known as the "Carpet Capital of the World" and home to carpet plants for Shaw Industries and other companies. "Other companies in the area not hiring illegal workers pay significantly more," Foster said. Attorneys said they would pursue class-action status, which could include any worker employed by Mohawk between when the case was filed in January 2000 and the time the case goes to trial. Mohawk has repeatedly denied knowing it had illegal immigrants on its payroll. Calls to Mohawk attorney Juan Morillo were not immediately returned Thursday. The key question in this case, which has also been raised in others, is whether a corporation that contracts out a service can be part of an illegal "enterprise" under the Racketeer Influenced and Corrupt Organizations Act of 1970. The _ commonly referred to as RICO _ is a federal law originally designed to fight organized crime. RICO. In 1996, Congress expanded the anti-racketeering law's reach beyond organized crime to include violations of immigration law, such as the hiring of illegal workers.

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