Iowa back pay settlement drastically reduced to $1.6 million
The Equal Employment Opportunity Commission settlement that was due to award $240 million to 32 workers for employee time back pay and abuses has been reduced to a total of $1.6 million.
The 32 workers with mental disabilities worked for Henry's Turkey Service and were under contract at a turkey processing plant in Iowa from the 1970s until 2009. During this time, Henry's handled the employees' care at home and at work.
When Iowa State officials shut down the plant in 2009, it was discovered that workers were living in an unsafe and bug-infested former school and being subjected to physical and verbal abuse by their employers.
The men were also being paid $65 per month, or about 41 cents per hour.
The EEOC successfully sued on behalf of the employees, and in the largest verdict ever for the EEOC, jurors awarded each of the workers $5.5 million in compensation for their suffering, as well as an additional $2 million for violations of civil rights.
The huge settlement has been overturned, however, to fall in accordance with federal caps on damages.
Under federal law, companies with fewer than 101 employees cannot be ordered to pay more than a maximum of $50,000 per worker for all damages. The EEOC filed a request with presiding Judge Charles Wolle, asking that the workers be paid interest on their damages. If Judge Wolle agrees to the request, each worker will be paid $58,885 for their abuses.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.