Mohawk Industries Settles Lawsuit After Claims They Hired Illegal Aliens to Depress Wages

Carpetmaker Mohawk Industries has settled a lawsuit with employees who claimed the company depressed wages by hiring illegal aliens. The company will pay $18 million after the six year battle.

In addition to the financial settlement, Mohawk agreed to conduct training for its staff on employment verification processes, and they will set up an anonymous tip line for employees wishing to report possible violations. The company has registered for E-Verify, and they are listed in our searchable E-Verify database.

Employees of Mohawk claimed that the company began depressing wages in 1999 and estimated that they depressed wages by about 5% per year. The Supreme Court listened to oral arguments in the case, but sent it back to the lower courts. The U.S. District Court for the Northern District of Georgia has offered preliminary approval of the settlement.

More information on the case can be found at Law.com.