An operator of a local call center that dispersed aid to victims of Hurricane Katrina will pay up to $1.3 million to settle a class-action lawsuit brought by former employees, according to Bakersfield.com.
The report cites Spherion (News - Alert) Pacific Workforce which set up a 2,000-employee center in Bakersfield in 2005 to help the American Red Cross distribute donations to hurricane-ravaged areas on the Gulf Coast, allegedly failed to properly pay employees and failed to provide meals and rest breaks, according to the lawsuit filed in Kern County Superior Court.
Delaware-based Spherion, along with co-defendants Interim Personnel of Fresno and ACS (News - Alert) Education Services, admitted to no wrongdoing under the settlement agreement. A spokesman for the defendants' attorney could not immediately be reached for comment Wednesday, said Bakersfield.com in the report.
Philip Ganong, a Bakersfield attorney representing the employees, characterized the settlement as fair and reasonable and in the best interests of the employees and all parties to the lawsuit.
'I don't believe Spherion was malicious,' Ganong told Bakersfield.com. 'I think they were careless, in the literal sense of the word.'
Employees were required to stand in long security lines when entering and leaving work, Ganong said. They had to travel to another location and wait in line for significant periods to pick up their paychecks. Employees were not compensated for these and other off-the-clock requirements.
'Many of these folks were hand-to-mouth individuals,' Ganong said. 'Some had their power shut off. Many were sent to collections. Some faced evictions.'
According to an information packet sent this week to former workers, individuals who were employed at the 34th Street call center between Sept. 5, 2005, and Dec. 21, 2005, may be eligible for a portion of the settlement. Those who have previously received compensation from an earlier lawsuit filed by the Kern County District Attorney's office or from a labor commissioner action may not participate in the settlement.
The call center faced other problems as well.
The center and Spherion came under heavy scrutiny in fall 2005 when several employees complained they weren't paid and the FBI discovered several Bakersfield residents, including 10 call center employees, filed false aid claims through the call center.
In the following months, dozens of people were charged federally with wire fraud for taking money that should have gone to Katrina victims.
Anil Sharma is a contributing editor for TMCnet. To read more of Anil's articles, please visit his columnist page.
Edited by Juliana Kenny