Call center employees and customer service representatives usually qualify for overtime pay. But as with many workers, employers do not always abide by the Fair Labor Standards Act (FLSA), the primary federal law that governs overtime in the United States. In addition to being misclassified as exempt from overtime protections, these workers are often cheated out of their overtime pay in other ways. If you work at a cell center or as a customer service employee, it’s imperative that you understand your rights. Count on our dedicated team to assist you.

Work 40+ Hours Per Week?
Not Paid Overtime?
Find out if you are owed back overtime pay now.
Get Your Free Case Review
No wage theft

When is Overtime Required?

The FLSA sets the minimum overtime rules that most employers in the country must follow. Under federal regulations, employers have to pay their non-exempt employees overtime once they work in excess of 40 hours during a single work week. Overtime is also known as time and a half because the employer must pay the employee 1.5 times his or her regular hourly rate. Nearly all hourly workers are non-exempt, meaning they have to be paid overtime for hours worked above 40.

While there are exceptions to the law (which are discussed below), they do not usually apply to call center and customer service workers. In fact, employers routinely misclassify their workers to attempt to claim an exemption and deny overtime. Exemptions are strictly defined and it is the employer’s duty to prove they apply. Again, for most hourly workers, including call center and customer service employees, overtime exemptions will not typically apply.

Common Overtime Issues for Call Center and Customer Service Employees

Although employees in every industry face challenges in being paid fairly for the overtime work they do, there are a few issues that are unique to call center and customer service workers. These are some of them:

Improper use of an exemption. As mentioned above, there are exemptions to the overtime laws, so not all hourly workers are required to be paid time and a half. However, meeting these exemptions is difficult, and most call center workers probably will not qualify (meaning, their employers will have to pay them overtime).

The administrative exemption to the FLSA overtime rules is one that is commonly, and often incorrectly, applied to these employees. All of these factors must be met for customer service representatives and call center employees to be administratively exempt:

  • The worker must be paid a salary of not less than $684/week;
  • The worker’s primary duty must be the performance of office or non-manual work that is directly related to the management or general business operations of the employer or the employer’s customers; and
  • The worker’s primary duty must include the exercise of discretion and independent judgment with respect to matters of significance (a phrase that refers to how important or consequential the work is to the employer’s business)

Paying a salary, therefore, isn’t enough to meet this exemption. The true test will come in the primary job duties the worker is expected to perform, and this is where the vast majority of call center and customer service workers will not qualify. Therefore, they will typically deserve overtime pay.

Another common exemption is for commissioned salespersons. If a customer service representative or call center worker is paid a commission, it is possible that the employee is exempt from overtime. But again, the actual exemption is strictly enforced and these workers will usually not meet the necessary criteria. All of the following must be true:

  • The worker must be employed by a retail or service establishment;
  • The worker’s regular rate of pay must exceed 1.5 times the applicable minimum wage (federal or state, whichever is higher) for every hour worked in a workweek in which overtime hours are worked; and
  • More than half of the worker’s total earnings in a representative period (which is set by the employer but which cannot exceed one year) must consist of commissions

Not being paid for all time worked. Employers routinely require their employees to perform “off-the-clock” work. This is labor that benefits the employer and should be compensated. Moreover, the hours should be included in the total number of hours worked in a week. When these hours are not counted, the employee’s total hours for the week will be incorrect and may cause the employee to be denied overtime.

Some examples of off-the-clock work your employer may require are:

  • Booting up computers
  • Logging in and out of systems and programs
  • Making notes
  • Completing paperwork before or after calls have been finished
  • Reading company memos, updates, and policies
  • Attending mandatory meetings and training programs
  • Working through lunch breaks

A number of recent cases brought on behalf of call center and customer service workers have successfully recovered unpaid overtime and pay for off-the-clock work. For example, Sprint agreed to a $9 million settlement to compensate call center employees who worked before and after their shifts or during meal breaks. In another lawsuit, APAC Customer Services, Inc. agreed to a $4 million settlement to pay their customer service representatives for time spent logging into their computer systems, performing clerical duties, and reviewing company notices prior to logging into the company’s timekeeping system.

Other Ways That Workers Are Denied Overtime

More generally, these are some other methods that employers use to cheat their employees out of overtime:

  • Misclassifying an employee as an independent contractor
  • Mathematical errors (e.g. not totaling the hours correctly or applying the correct rate)
  • Averaging hours across more than one week to avoid paying time and a half
  • Not paying the state or local minimum wage (which may be higher than the federal rate), which affects the employee’s overtime pay
  • Improper paycheck deductions that can reduce overtime pay

We’re Here to Protect Your Right to Fair Pay

Call center and customer service employees have the right to be compensated for all of their work. When employers refuse to pay overtime as required by law, workers can take legal action to recover back pay and an equal amount of liquidated damages. The Lore Law Firm is here to stand up for you, regardless of which state you live in. Contact us today by filling out our free online client intake form.