temporary employees
maverick
4 Posts
I am looking for information about a court case in the state of Washington involving Microsoft Corporation and the issue of when temporary employees become regular employees. I don't know if this is a state case or federal case. Any information would be appreciated.
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By Reuters,
Seattle
3:59 PM EST Tue. Dec. 12, 2000
Microsoft Corp. said Tuesday it will pay $97 million to settle a long-standing lawsuit by thousands of temporary workers who claimed they were denied benefits at the software giant.
The so-called "permatemp" case, filed in 1992, involved Microsoft's practice of hiring long-term workers through temp agencies so it could allegedly avoid paying pensions, health care and stock options.
From 8,000 to 12,000 workers who worked for Microsoft after December 1986 could receive payments in the settlement, believed to be the largest ever in a permatemp class-action case, plaintiff's law firm Bendich, Stobaugh and Strong said in a statement.
With more than $20 billion in cash and cash-equivalents in its coffers, the payout was not expected to hit Microsoft's bottom line.
"The settlement will not have a material impact on our results," Microsoft spokesman Matt Pilla said.
The Redmond, Wash.-based company, which makes the ubiquitous Windows operating system for personal computers, employs 42,000 people worldwide, and between 5,000 and 6,000 temporary workers on top of that, Pilla said.
Shares in Microsoft rose 94 cents, or 1.6 percent, to $59 in mid-afternoon trading on the Nasdaq Tuesday.
The settlement takes care of one lingering legal headache for the company, which is also battling in appeals court a federal judge's decision to break it in two to prevent further violations of antitrust law.
In addition, Microsoft is fighting dozens of class-action suits in several states filed on behalf of consumers who, bolstered by the federal ruling that it was an abusive monopoly, claim they were overcharged for Windows.
CHANGES IN TEMP POLICY
The "permatemp" settlement praised Microsoft for recent policy changes, saying that since 1997 it had hired some 3,000 former permatemps as workers with full benefits, and had adopted new practices to limit the length of temporary assignments.
"This case was brought to change the system at Microsoft and to obtain some compensation for this practice," law firm partners David Stobaugh and Stephen Strong said in a statement.
"We believe this case has achieved its goals," they said.
Last year a U.S. appeals court ruled Microsoft's permatemps were eligible to participate in the company's coveted stock-purchase plan, and earlier this year the company instituted changes to its temporary worker policy.
Changes over the last few years include hiring temporary workers from agencies that offer better benefits, and limiting the length of temp assignments to 12 months, with 100 days required before the same worker can be re-hired, Pilla said.
The average assignment was about 10 months, Pilla said.
"Microsoft continues to be a great place to work, and we value everyone who contributes to our products and services. We are pleased to reach an agreement that is acceptable to both sides and resolves this litigation," Deborah Willingham, Microsoft's vice president of human resources, said in a statement.
Brad Forrister
VP/Content
M. Lee Smith Publishers