News Release

Printer-Friendly Version

ESA News Release: [11/26/2003]
Contact Name: Dolline Hatchett
Phone Number: (202) 693-4650

T-Mobile USA, Inc. Agrees to Pay $4.7 Million in Back Wages

SEATTLE - The U.S. Department of Labor announced today that it has reached an agreement with T-Mobile USA, Inc. to pay 20,546 workers $4,779,985 in back wages as a result of alleged violations of the overtime provisions of the Fair Labor Standards Act (FLSA).

T-Mobile, a provider of wireless telecommunication services, is headquartered in Bellevue, Wash.

"T-Mobile has accepted its responsibility to pay back wages and to take steps to come into compliance with the Fair Labor Standards Act," said Secretary of Labor Elaine L. Chao. "Their workers can now be assured that they will receive more than $4.7 million in back wages and overtime pay, covering all the hours they work."

"T-Mobile worked closely with the department, and we appreciate their efforts to voluntarily resolve these difficult overtime issues," stated Tammy D. McCutchen, Administrator of the Wage and Hour Division. "When employers like T-Mobile are willing to work with the department in a cooperative manner, everyone benefits because we are able to get wages back to employees quickly and efficiently."

An investigation by the department's Wage and Hour Division at three of the firm's call centers found that customer care representatives were not recording preparatory activities performed prior to the start of their shift and thus were not paid. Such preparatory activities are work time that must be compensated. After the company was made aware of the violations, it worked cooperatively with the department to compute the back wages at all of its call centers for the three-year period from December 16, 2000 to October 4, 2003 and to come into compliance.

The FLSA requires employers to pay for all hours of work and to pay overtime at a rate of one and one-half times the employees' regular rate of pay for hours worked after 40 in a workweek. The law also requires employers to maintain payroll records.

The employees worked at 13 call center locations including: Allentown, Pa.; Wichita and Lenexa, Kan.; Bellingham, Wash.; Salem, Ore.; Albuquerque, N.M.; Colorado Springs and Thornton, Colo.; Nashville, Tenn.; Jacksonville, Tampa and Ft. Lauderdale, Fla.; and Birmingham, Ala.

A consent judgment agreeing to the payment of the back wages and future compliance with the overtime and record keeping requirements of the FLSA was filed November 25, 2003 in U.S. District Court, Case Number CV 03-3671C, for the Western District of Washington in Seattle. The court must approve the consent decree. For additional information about the FLSA, call the Department of Labor's toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

# # #

_________________________________________________________________