Mohawk Settles Worker Dispute for $18 Million

Calhoun, GA, April 12, 2010--Mohawk Industries agreed to an $18 million settlement with former and current hourly employees who accused the carpet and flooring maker of using undocumented workers to depress wages, according to the Atlanta Journal-Constitution.

The settlement, announced late Friday, ends the nearly six-year-old class action, which made its way to the U.S. Supreme Court on appeal before going back to a lower court.

Approximately 48,000 former and current Mohawk employees from the Calhoun-based company's North Georgia factories will share in the settlement, the Atlanta newspaper said.

Only a portion of the settlement will come from Mohawk, which admitted no wrongdoing. Zurich American Insurance Co., Mohawk's insurer, will pick up the majority of the tab.

Mohawk also will implement training procedures and best practices for verifying employment eligibility.

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

"Mohawk has always trained its employees to comply with the immigration and workplace laws, and this settlement affirms the company's commitment to a continued culture of compliance."