• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Feds’ deal for call center: $150K to fix misclassification

Get PDF file

by on
in Employment Law,Human Resources

A Southern California marketing firm will pay $150,000 in back pay and overtime to resolve charges it misclassified employees as independent contractors. ViaSource Solutions in Thousand Oaks runs call centers for products sold on TV infomercials.

Investigators from the U.S. Depart­ment of Labor’s Wage and Hour Division found the call center workers should have been classified as employees—not contractors—under the Fair Labor Standards Act. As a result, the 435 call center agents were entitled to $101,491 in back wages.

But wait, there’s more: 165 employees were also entitled to overtime amounting to $48,893.

Federal investigators and regulators cast a particularly critical eye on independent contractor arrangements because they often cost employees wages and the government tax revenue.

Leave a Comment