Xerox Loses Overtime Lawsuit by Call Center Workers.

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Xerox Loses Overtime Lawsuit by Call Center Workers.
A federal judge in Washington state ruled that Xerox and several affiliates violated the state’s minimum wage law by not paying overtime to their call center workers.

The workers, who handled customer service calls for Xerox clients, were paid under a method called “variable pay”. This method consisted of a base rate per hour, plus a variable rate that depended on the number and quality of calls they handled.

The workers claimed that this method was unfair and illegal, as it did not include the variable pay in the calculation of their regular rate for overtime purposes. Under the Washington Minimum Wage Act (MWA), employers must pay workers one and a half times their regular rate for hours worked over 40 in a week.

The companies argued that the variable pay was not part of the regular rate, but rather a bonus or incentive that did not need to be included in the overtime calculation. They also claimed that the workers agreed to the pay method and waived their right to overtime.

However, U.S. District Judge Robert S. Lasnik rejected the companies’ arguments and ruled that the variable pay was an integral part of the workers’ compensation. He said that the companies failed to show that the variable pay met the criteria for a bonus or incentive under the MWA, such as being discretionary, occasional, or based on a contract.

Judge Lasnik also said that the companies’ pay method could only be considered an hourly structure, and that their “obtuse failure” to comply with the MWA was not excusable. He granted summary judgment to the workers on their overtime claims and ordered the parties to confer on the next steps for the case.

The workers are seeking back pay, liquidated damages, interest, and attorney fees. The case is one of several lawsuits filed by call center workers across the country against Xerox and its affiliates over their pay practices.

[Author]

February 14, 2024 at 3:40 PM