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West Virginia Employees of Applied Card Systems Claim Rampant Labor Violations

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Case ID: 3130 | Employment | 02/06/2004

A statewide collective action with possible national reach has been filed in West Virginia against credit card customer service giant, Applied Card Systems, Inc. The action is brought on behalf of all West Virginia employees of Applied who were not paid proper overtime compensation for all hours worked beyond 40 per week. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as injunctive and declaratory relief. As a collective action, all potential claimants must voluntarily "opt-in" to the action in order to be considered a member of the class. The employees have requested that the court issue notice to all potential claimants.

According to employees, Applied Card Systems has engaged in a willful, intentional and systematic practice of violating the federal Fair Labor Standards Act. The employees, the majority of which are telephone customer service representatives, claim that they are called upon to work beyond 40 hours a week on a regular basis, but are not compensated for the majority of these hours. According to employees, they are required to arrive early at work daily to prepare for their shift. During this period of time, they check interoffice e-mail, power up their computer and telephone systems, review their client lists, etc. However, the employees claim that all of this work is off of the clock and that they are only paid for time actually spent on the phone with a customer. The employees additionally claim that this time is rounded in favor of
Applied Card Systems, and not the actual amount of time they have spent on the phone. Furthermore, the employees allege that they are required to stay after their shift if they are in the midst of a call. Only after 20 minutes have expired does Applied begin to pay them overtime for a call that lasts beyond their shift. The employees are further required to stay late because they must perform similar duties to shut down after a day's work as they did to prepare for the day's work. According to the employees, these after shift duties are off of the clock as well.

Under the federal Fair Labor Standards Act, all "non-exempt" hourly employees are entitled to a minimum of time and a half for all hours worked beyond 40 per week. "Non-exempt" employees are generally those that work on an hourly basis and do not perform managerial or executive tasks. All potential claimants in this action assert that they were "non-exempt" and are entitled to overtime compensation. They further claim that because Applied's actions were willful, they are entitled to liquidated damages under the act. Applied Credit Systems employs over 2500 people and is located nationwide, with telephone centers in West Virginia, Pennsylvania and Florida. The employees claim that these actions are uniform and occur at all locations.


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