Dive Brief:
- An employee of customer service company TTEC Services Corporation filed a class-action lawsuit Tuesday in Colorado District Court alleging the company requires remote workers to purchase their own equipment in violation of the Fair Labor Standards Act and the Virginia Overtime Wage Act.
- The lawsuit claims workers were required to purchase tools for customer service work such as computers, ethernet equipment and high-speed internet service, The policy allegedly resulted in the plaintiff and other employees receiving less overtime wages than they were entitled to due to the cost of equipment.
- The lawsuit seeks unpaid overtime wages, attorneys’ fees and costs, and any relief allowed by law under the FLSA on behalf of the plaintiff and other employees.
Dive Insight:
TTEC provides CX management, strategy and technology services, as well as customer service outsourcing. Amazon Web Services and AAA are some of its clients. The lawsuit alleges that the company mishandled the reimbursement of employees for the equipment they need for remote customer service work.
Remote employees are required to pass an internet speed test as a condition of their employment, according to the lawsuit.
Loren Alvarez, the plaintiff, stated that they were required to purchase a more expensive internet package to pass the test, and that the fee was not reimbursed. The lawsuit also claims that remote workers are required to use wired internet connections, which necessitated the purchase of ethernet equipment.
The lawsuit estimates that about 10,000 employees are eligible to join the lawsuit under the FLSA, while about 200 are eligible under the Virginia Overtime Wage Act.
This isn’t the only suit the company is facing from remote employees. Another lawsuit filed by Derek Wilfong in April seeks redress for employees’ off-the-clock work. The suit alleges TTEC failed to pay employees for such tasks as logging into computer and phone systems and that agents were required to continue working after their shifts ended.
Other customer service companies are facing similar complaints. In March, Arise Virtual Solutions agreed to pay more than $2 million to over 250 workers following a suit that alleged it unlawfully classified them as independent contractors, failed to pay minimum wages and required them to purchase equipment.
