The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Call Center Overtime Settlements
Call centers have revolutionized the profitability and productivity of numerous industries by completely overhauling how businesses provide customer services and product support lines. However, not everyone has benefited from the continued expansion of call centers. There are a group of victims that are present when a large corporation employs a call center and these victims are the call center employees.
Call Centers, especially those that are working for major corporations, sometimes find themselves in violation of the Fair Labor Standards Act by not paying their employees for all of the hours that they worked. This typically happens when a call center employee works overtime or more than 40 hours in a single week. These large corporations are not above the law and recent call center overtime settlements are proving just that.
In 2017, AT&T paid out an undisclosed amount of money due to violations of the Fair Labor Standards Act due to unpaid overtime. AT&T’s call center has over 1200 employees.
Alorica agreed to pay a $9.25 million settlement in 2016 as a result of a class action lawsuit that alleged Alorica did not pay employees for work performed before and after their shifts.
In 2016, ViaSource Solutions was ordered to pay $150,000 of unpaid overtime and back wages after admitting that they incorrectly classified their workers as independent contractors instead of W2 employees.
Farmers Insurance paid $1.52 million to its 3,500 employees in 2011 after an investigation found that they consistently violated the Fair Labor Standards Act at 11 of their customer service call centers.
Sprint settled a class action lawsuit in 2009 after agreeing to pay $8.8 million to employees that were not reimbursed for time spent performing essential work duties before and after their scheduled shifts.
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About The Author
Tim Becker Partner at Minneapolis’ Johnson // Becker PLLC, and lead sponsor of WageAdvocates.com. He is committed to providing clients effective, aggressive legal representation, and has prosecuted numerous individual FLSA violation claims.