Wireless Phone Co. Agrees to $5M Back-Pay Settlement

December 1, 2003 (PLANSPONSOR.com) - A wireless phone service provider has agreed to fork over $4.7 million in back wages to call center employees who worked before the official start of their shifts.

>The agreement with the Bellevue, Washington-based T-Mobile comes after a US Department of Labor probe that found that the company had violated the Fair Labor Standards Act (FLSA) in its pay of the call center employees, for time they worked prior to the official start of their shifts, according to Thompson Publishing. The settlement amount covers three years back wages for more than 20,000 call center workers.

The FLSA generally requires employers to pay for all hours of work and to pay overtime at a rate of one and one-half times the employee’s regular rate of pay for hours worked after 40 in a work week.