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ICT Group Sets Aside $12.8 Million to Pay Damages to Underpaid WV Telemarketers

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Case ID: 2559 | Employment | 07/22/2003

A class action has been filed against telemarketing giant ICT Group on behalf of all current and former hourly employees of the company's calling centers in West Virginia alleging that the company violated the West Virginia Wage Payment and Collection Act (WVWPCA) with respect to certain of the company's pay practices. The action seeks unspecified compensatory and punitive damages, and an order that will force the ICT to pay its West Virginia workers according to the law.

The action alleges that the company routinely cheats its West Virginia workers out of hundreds of thousands of dollars in wages by not paying them for short breaks as required by the WVWPCA. The action also alleges that the company changed computerized pay records and did not pay workers during transition times when they were being shifted from one calling assignment to another. Allegedly, the company also failed to pay promised signing and incentive bonuses and wage increases. The action included a claim for fraud, alleging that the failure to pay for short break and transition time violated specific promises made by the company to its employees.

On April 16, 2003, the court entered an order granting the employees' motion for summary judgment on the method of calculation of liquidated damages under the WVWPCA. The court ruled that every employee who was not paid transition time, short breaks, or other wages is owed liquidated damages equal to a day's wages for every day the amounts due remain unpaid up to 30 days. The employees are still seeking punitive damages for the allegedly fraudulent conduct on the part of ICT.

In an affidavit filed on behalf of the workers, an ICT supervisor said she was taught how to change computer pay codes and later discovered that, when she changed the codes, the telephone operators were not getting paid. Robin Beans, who worked at ICT's Morgantown office in 1999, said in an affidavit that "my paychecks from ICT Group were consistently short as to hours actually worked every week. I have never been fully compensated... ."

The company, which had initially set aside $1.35 million for the suit, said in July 2003 that it would add $11.5 million to the fund.

The company has gradually been shifting its work overseas. At the end of 2002, 42 percent of ICT's phone work was done outside the United States. By the end of 2003, the balance will shift to 55 percent overseas, according to the company.


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