SAN FRANCISCO (AP) — Toyota Motors and the corporation that ran California's only auto manufacturing plant before it shut down last year have agreed to pay $6 million to settle a lawsuit brought by a group of former workers who claimed they were illegally denied severance benefits.
Seven workers who were on medical leave in the six months before the Fremont-based New United Motor Manufacturing plant closed had alleged that NUMMI managers and Toyota violated the Americans With Disabilities Act by refusing to pay them incentive bonuses that were offered to employees who worked during that period.
The U.S. Equal Employment Opportunity Commission announced the settlement Thursday. Under the terms of the agreement, 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.
A federal judge still must approve the deal, which could bring the plaintiffs about $31,000 each.