A lawsuit alleging that disaster-recovery workers were put in unsafe, overcrowded conditions during early pandemic cleanup work in mid-Michigan has been resolved through a confidential settlement, the Sugar Law Center for Economic and Social Justice announced this week.
The case was filed in the 42nd Circuit Court in Midland County and named a SERVPRO franchise and several contractors and subcontractors involved in flood-recovery work after the May 2020 dam failures and flooding in the Midland area.
According to the lawsuit, more than 100 workers were recruited from out of state to perform cleanup and remediation work at multiple sites, including MidMichigan Medical Center, as well as locations in or near Midland such as Currie Golf Course, the Herbert D. Doan Midland County History Center, and Northwood University.
The workers alleged they were housed four to a hotel room with two people sharing a bed, transported in crowded vans, and required to gather indoors for daily briefings in conditions that did not allow social distancing.
The complaint also alleged the defendants failed to implement basic COVID-era safeguards, including a proper preparedness plan, training, screening protocols, adequate protective equipment, sanitation measures, and procedures for responding to confirmed infections.
As workers began experiencing symptoms and some tested positive, the complaint alleged that public health officials advised the workers to remain in Michigan to isolate or quarantine, but that key guidance was not properly communicated and workers were later terminated and sent back out of state.
The lawsuit alleged workers contracted COVID-19 and that some became severely ill, including hospitalizations requiring ventilator support.
John Philo, executive director of the Sugar Law Center for Economic and Social Justice, said the lawsuit settlement sends a message that worker safety must be safeguarded.
“This outcome represents a major step forward for resilience workers, who are often placed in hazardous environments with limited power to speak up,” Philo said. “It affirms that companies responding to disasters must prioritize worker safety, especially during public-health emergencies.”
The complaint described multiple legal claims, including negligence and alleged violations of wage and sick-leave protections, along with other state and federal claims.
The Sugar Law Center said the agreement resolves allegations that workers were denied proper protections while performing essential disaster-recovery work in the early, pre-vaccine phase of the pandemic. The terms of the settlement were not disclosed.
Saket Soni, executive director of Resilience Force, one of the organizations representing the workers, said the lawsuit was about standing up for workers.
“We hope this outcome drives meaningful industry-wide change to protect disaster-recovery workers in future emergencies,” Soni said. “This case was about upholding the right of all workers to health and safety at work, even during a pandemic, and we believe that its resolution confirms that right for everyone in our state.”
Named defendants in the case included SERVPRO Industries LLC; BTN Services LLC; BTN owner and supervisor Alejandro Fernandez; Favreau, Wallace, Rush, Schmidt, Inc.; RDM Holding Co.; and RACM, L.L.C.
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Steve Neavling
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