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LEGAL ISSUES

Employers Face Racketeering Charges

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RICO isn't just for the Mob anymore. The racketeering statute known as RICO is being used against companies that are accused of conspiring with recruiting agencies to hire illegal immigrants. The Supreme Court will rule on the novel use of RICO this spring. In the test case, Williams v. Mohawk Industries, current and former employees of Mohawk, a flooring manufacturer based in Georgia, accuse the company of driving down local wages by sending recruiters to scour the U.S.-Mexican border for illegal workers. Companies are likely to add language to their contracts with outside recruiters in an effort to indemnify them from legal liability.




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