Permatemps Case Settled

Microsoft has announced a US$97 million settlement in its long-running court battle with temporary workers. If the judge assigned to the case approves the settlement in a Feb. 2001 hearing, it will end an eight-year legal headache for Microsoft.

History of the Case

In 1992, a group of former and current Microsoft temporary employees (“temps”) brought a class-action suit against Microsoft on behalf of themselves and other temps who worked at Microsoft after 1986. Microsoft, like many other high-tech companies, employed many workers from temporary placement agencies, independent contractors, and freelancers on a long-term basis, giving them years-long assignments or consecutive shorter assignments that essentially amounted to permanent work. Although some of these “permatemps” turned down offers of permanent employment, preferring the flexibility and sometimes higher wages that contractors received, many would have welcomed permanent positions with the company. In 1998, a second class-action suit was added.