SAN FRANCISCO (AP) — 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 illegally denied severance benefits.

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

The U.S. Equal Employment Opportunity Commission announced the settlement Thursday. 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.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.