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Toyota to pay $2.2M in severance debacle

If U.S. judge approves settlement, former Toyota plant workers will receive $31,000 each


August 19, 2011
by The Canadian Press

SAN FRANCISCO—Toyota Motor Corp. and the company that ran California’s only auto manufacturing plant have agreed to pay $6 million to settle a lawsuit by former workers who claim they were denied severance benefits.

Seven workers on medical leave in the six months before the New United Motor Manufacturing plant in Fremont closed last year allege NUMMI and Toyota violated the Americans With Disabilities Act by refusing to give them bonuses offered to employees who worked during that time.

NUMMI will give $3.8 million and Toyota will contribute $2.2 million to a fund for all workers who missed out on the bonuses.

If a federal judge approves, the deal could bring the plaintiffs about $31,000 each.