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Call Centers Overtime Pay Rules Under the Fair Labor Standards Act (FLSA)

WASHINGTON D.C — Our overtime pay lawyers handle cases involving call centers who deny or fail to pay overtime wages to call center employees.  These cases often result in substantial settlements due to the large number of employees and the substantial overtime hours that are worked but not compensated by the call center company.  In most circumstances, overtime pay is required for call center employees.

A call center is a central customer service operation where agents (often called customer care specialists or customer service representatives) handle telephone calls for their company or on behalf of a client. Clients may include mail-order catalog houses, telemarketing companies, computer product help desks, banks, financial services and insurance groups, transportation and freight handling firms, hotels, and information technology (IT) companies.  Call center employees are often required to arrive at work early to start preparation for the work day and stay after the shift to complete paperwork or finalize other tasks.Call Center Employee Overtime Pay Lawsuit

If the annual dollar volume of a call center’s sales or business is $500,000 or more, and the enterprise has at least two employees, all employees of the enterprise are covered by the FLSA on an “enterprise” basis. An enterprise may consist of one establishment, or it may be made up of multiple establishments.

Additionally, the FLSA also provides an “individual employee” basis of coverage. If the gross sales or volume of business done does not meet the requisite dollar volume of $500,000 annually, employees may still be covered if they individually engage in interstate commerce, the production of goods for interstate commerce, or in an occupation closely related and directly essential to such production. Interstate commerce includes such activities as transacting business via interstate telephone calls, the Internet or the U.S. Mail (such as handling insurance claims), ordering or receiving goods from an out-of-state supplier, or handling the accounting or bookkeeping for such activities.

Covered nonexempt employees are entitled to be paid at least the federal minimum wage as well as overtime at time and one-half their regular rate of pay for all hours worked over 40 in a workweek. (This may not apply to certain executive, administrative, and professional employees, including computer professionals and outside sales, as provided in Regulations 29 CFR 541).

Covered employees must be paid for all hours worked in a workweek. In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal activity of the workday. Also included is any additional time the employee is allowed (i.e., suffered or permitted) to work. An example of the first principal activity of the day for agents/specialists/representatives working in call centers includes starting the computer to download work instructions, computer applications, and work-related emails.

Rest periods of short duration, usually 20 minutes or less, are common in the industry and must be counted as hours worked. Bona fide meal periods generally need not be compensated as work time as long as the employee is relieved from duty for the purpose of eating a regular meal.

Earnings may be determined on an hourly, salary, commission, or some other basis, but in all such cases the overtime pay due must be computed on the basis of the regular hourly rate derived from all such earnings. This is calculated by dividing the total pay (except for certain statutory exclusions) in any workweek by the total number of hours actually worked.

Salaried call center employees may also be entitled to receive overtime pay.   A salary, by itself, does not exempt employees from the minimum wage or from overtime. Whether employees are exempt from minimum wage and/or overtime depends on their job duties and responsibilities as well as the salary paid.  Our experienced lawyers can determine whether a salaried employee should be paid overtime.

If you are currently or were previously employed at a call center and were not paid overtime, you should contact our Call Center Overtime Lawyers now to start your case.  We do not charge any legal fees unless you receive a settlement for your back pay and we pay all of the court expenses.  It costs you nothing to get started and to receive a settlement.  Call now at (855) 754-2795 to get started on yours case.

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