Compliance June 5, 2006

Supreme Court Defers Illegal Worker Case Back to Appeals Court

June 5, 2006 (PLANSPONSOR.com) - The US Supreme Court dismissed Monday a case on whether a Georgia carpet and floor-covering maker could be sued under federal anti-racketeering law for allegedly recruiting illegal immigrants.
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The high court said the appeal should never have been granted, and sent the case back to the appeals level in order to resolve minor issues.

Current and former employees of Mohawk Industries Inc. filed the suit in January 2004 under federal and state racketeering statutes, alleging that the company recruited and employed illegal aliens with the intent of shrinking the salaries of legal employees (See Supreme Court to Hear Case on Alien Recruiting).

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The plaintiffs claimed that Mohawk conspired with recruiting agencies to hire and harbor illegal aliens to keep labor costs down. Tactics included Mohawk employees going to the Mexican border to lure incoming immigrants to work for the company in Georgia. And upon employment, Mohawk allegedly provided them with housing.

The plaintiffs claimed that Mohawk made incentive payments to employees and outside recruiters to locate the workers it eventually employed.  According to the complaint, Mohawk employees sometimes assisted the recruiters by carrying a supply of bogus Social Security cards for use when a prospective or existing employee needed to assume a new identity.

The suit further alleged that Mohawk destroyed documents in an effort to veil from law enforcement its recruiting and harboring of illegal aliens. The 11th US Circuit Court of Appeals stated that these alleged actions would violate several aspects of US immigration laws.

The district court ruled that the plaintiffs stated a viable claim under the federal and Georgia Racketeer Influenced and Corrupt Organizations (RICO) acts. The appellate court agreed, allowing a major racketeering case alleging intentional and systematic violation of the immigration laws by a large employer, to be pursued.

The justices also set aside a US appeals court ruling that Mohawk and the recruiters can constitute an “enterprise” within the meaning of the Racketeer Influenced and Corrupt Organizations Act.

Administration June 4, 2006

Ohio Pension Reform Stalemates

April 30, 2004 (PLANSPONSOR.com) - A decision on whether to require state pension funds to "Buy Ohio" has reached an impasse.
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Holding up the talks is discussions over whether or not retirement systems should be required to use Ohio-based money managers and brokers.   On one hand, the state House of Representatives has passed a bill requiring pension systems to use Ohio-based money managers and brokers for a set percentage of fund investments, while the state Senate insists the idea should be scrapped, according to a Dayton Daily News report.

Joining the Senate in support of doing away with such a plan are pension directors and Ohio banks.   The two groups came out unified in a statement, agreeing that “Buy Ohio” investment quotas are inappropriate because they conflict with the systems’ ability to manage money in their memberships’ best interests.

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“The systems pledged to do what they can do eliminate any real or perceived barriers that prevent Ohio-based banks and firms from doing more business with the plans,” the Daily News report quoting the directors said.

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