The state has agreed to pay unemployment benefits to settle a legal dispute with former Westinghouse Hanford Co. employees who participated in a voluntary reduction in force in 1995.

An estimated $180,000 to $200,000 will be paid to 72 former employees. Attorney William Knowles of Seattle said the payments will range from $131 to about $10,500.

"It is over," he said. Money will be paid after forms already mailed out are returned by claimants.

The dispute centered on whether the so-called "special voluntary reductions in force" were really voluntary or if the threat of massive layoffs entitled employees who participated to receive unemployment benefits.

The disagreement dates back to late 1994 and 1995, when Westinghouse was the site's lead contractor and Hanford began to make huge cuts in its work force. The Department of Energy and Westinghouse announced they would trim about 4,800 people in three or four rounds of early retirements, involuntary layoffs and what they called "special voluntary reductions in force." Along with the first round of early retirements, Westinghouse identified sections and kinds of jobs where cuts were expected and offered people up to $15,000 if they volunteered to leave.

Many people received about $5,000 and also were counting on unemployment benefits to tide them over until they found jobs, Knowles said.

The state initially paid those benefits, then changed its mind and demanded the money back.

Former employees filed lawsuits, which ended up in four counties. Cases reached the Division I and Division III Court of Appeals, which came up with conflicting opinions.

The state Supreme Court had agreed to hear an appeal on the Division I case when the state agreed to settle. The Division III Court of Appeals already had decided that in the case of three employees, the "voluntary"reductions were not really voluntary because of the threat of layoffs.

The commissioner of the Employment Security Department agreed with the Division III ruling, said Pat DeMarco, assistant attorney general.

"These workers participated in the program because Westinghouse mandated that 4,800 employees would be fired in short order if enough of them did not agree to go. This is compulsive," the court ruling stated.

Just three people repaid benefits the state earlier had demanded be returned, Knowles said. Some $300,000 to $400,000 of the other overpayments demanded returned already have been forgiven, Knowles said. "This got all the overpayments waived," he said.