Laid-off software workers sue over benefits

The suit, which seeks class-action status, was filed Jan. 2 in the US Court of International Trade in New York, said Michael G. Smith, attorney for the plaintiffs. The suit wants a judge to order the Labor Department to make laid-off software workers eligible for weekly cash payments and other benefits under the Trade Adjustment Assistance program.

In recent years, US companies have laid off thousands of software workers and other high-technology employees. At the same time, companies are adding technology staff in India and other developing countries where labor is inexpensive.

Some displaced American workers have turned to the Trade Adjustment Assistance program for help. Begun in the 1960s, TAA was designed to soften the blow to US workers of increased imports or transfers of jobs overseas. Traditionally, workers in manufacturing have been eligible for the benefits, which include vouchers for job-training classes and cash payments after regular unemployment compensation runs out.

The Labor Department has ruled many software workers ineligible for TAA benefits. The Labor Department has said software and information-technology services don't qualify as products, or "articles," under TAA guidelines. Only workers who made more tangible products, such as clothing and furniture, can get TAA benefits, the department has ruled.

The lawsuit claims that about 10,000 software workers ruled ineligible under current Labor Department practices should be eligible for TAA benefits.

Labor Department spokeswoman Lorette Post said the department doesn't comment on pending litigation.