Mohawk Settles Class-Action Suit

Calhoun, GA, July 23, 2010--Employees of Mohawk Industries involved in a class-action lawsuit could soon receive a settlement check from the carpet manufacturer, according to the Rome News-Tribune newspaper.

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, the newspaper reported.

While Mohawk has not admitted any wrongdoing, the company did agree to settle, avoiding a potential jury trial.

According to the story, settlement checks could arrive as soon as September.

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.