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Verizon Sales Personnel Are Tired of Losing Their Commissions

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Case ID: 2725 | Employment | 09/23/2003

A class action has been filed against Airtouch Cellular of California, Verizon Wireless Services, LLC, and Cellco Partnership on behalf of current and former Verizon sales employees who have worked in a California-based telemarketing center or retail outlet, alleging that the company compels them to return commissions on failed wireless subscriptions and also fails to calculate overtime pay properly, in violation of California unfair business practices and labor laws. The action seeks a return of all commissions taken away and compensation for unpaid overtime apparently from March 6, 1999, to the date that the companies stop their wrongful actions.

Allegedly, Verizon takes back the full commissions that are earned for cellular subscriptions when customers cancel within one year from the date of sale. Verizon does this even though it also allegedly collects no less than a $175 penalty from customers pursuant to a liquidated damages clause in their contracts. Allegedly, company policy states that these recissions, called chargebacks, are to be deducted from the next available paycheck, leaving many employees in debt to Verizon when they begin each new month. The action alleges that Verizon can actually make more profits if a customer cancels than if they don't, since the company gets whatever monthly payments came through the contract, the liquidated damages penalty, and the salesperson's entire commission.

The action alleges that Verizon calculates overtime wages based only on the per-hour wages and does not consider commissions when paying overtime, contrary to applicable law.



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