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DOL $2 million Wage and Hour Settlement

2010-05-25

A Department of Labor wage and hour investigation of Teleperformance USA, a Salt Lake City call center, settled for almost $2 million in back overtime wages to 15,862 employees working in 10 states.  The settlement was the outcome of a nationwide investigation conducted by the DOL's Wage and Hour Division.

Teleperformance USA provides telephone customer service for clients such as Sprint Communications, Verizon Wireless and Dell Computers.

The overtime violations occurred primarily because employees were not compensated for all hours worked when the company failed to pay for breaks that were less than 30 minutes in length, or for time spent by employees waiting for work areas to become available even though their shifts already had started.  A small percentage of the employees for whom back wages were computed were misclassified as salaried exempt under the Fair Labor Standards Act (FLSA).

The FLSA requires that covered employees be paid no less than the federal minimum wage, currently $7.25 per hour, for all hours worked.  It also requires that workers are paid time and one-half their regular rates of pay for hours worked over 40 in a single week.  Employers are required to maintain adequate and accurate records of employees' wages, hours and other conditions of employment.