More than 900 present and former sales representatives are affected by the company's illegal compensation program, with losses totaling more than $10 million, according to the attorney representing the three individual plaintiffs. "Verizon wrongfully foisted their business losses against their sales reps and is now looking at a potential multimillion-dollar judgment in this case," said the plaintiffs' co-counsel.

The suit claims that between June 2000 and March 19, 2005, Verizon's compensation program illegally deducted incentive pay from reps for sales losses that were not their responsibility.According to the suit, telephone sales representatives who worked in an office as well as those who called on accounts in person were assigned territories and instructed to sell ads in Verizon's telephone directories and on the internet to new and existing customers.

Lawyers state that "Verizon routinely assigned existing accounts that could not be renewed -- such as companies that went out of business, moved or had a disconnected telephone number -- to sales reps who did not make the original sale. Reps who failed to renew the accounts, or who renewed other accounts at a lower revenue level than previously sold, had incentive wages deducted from their pay."

Verizon also deducted wages from sales reps to offset adjustments, cancellations and credits Verizon provided to customers. If Verizon gave credit to a customer who complained about the appearance of his ad, for example, it then deducted wages from the rep that made the sale, even if he had already been paid and regardless of whether any fault could be attributed to the rep for the credit.

All affected sales reps will be notified that the suit is proceeding as a class action case.