A disability services nonprofit has agreed to pay $76,500 to resolve a federal wage dispute over unpaid work and miscalculated overtime, ending a legal battle that highlighted the challenges faced by hourly call center employees. The settlement resolves the Call Center Workers Disability lawsuit filed in Virginia federal court.

Settlement Reaches Court Approval

In a joint motion filed Tuesday, the workers, led by Jennie Bethel, told the court that the agreement with ServiceSource Inc. represents the best path to conclude the Fair Labor Standards Act (FLSA) case, which sought compensation for unpaid wages.

“The settlement provides meaningful monetary relief to plaintiffs and the FLSA collective members while eliminating the substantial risks, expense, and delay associated with continued litigation for both sides,” the motion said.

Claims Highlight Unpaid Pre-Shift and Meal Break Work

The lawsuit, lodged by Bethel in December 2024, alleged that ServiceSource failed to pay hourly call center employees for tasks performed before the start of shifts, including booting up and logging into computers, which were excluded from time sheets.

Bethel also claimed the nonprofit did not compensate employees for work done during unpaid meal breaks or properly include performance-based awards, holiday pay, and health and welfare benefits when calculating overtime rates.

Breakdown of Settlement Funds

Under the agreement:

• $10,000 will be awarded to Bethel as a service award

• $26,500 will cover attorney fees and costs

• $40,000 will be distributed pro rata among the 29 hourly call center workers in the FLSA collective

Bethel said the settlement ensures compensation for all eligible workers while avoiding the delays and costs of continued litigation.

Legal Representation

• Plaintiffs: Curtis D. Cannon of Goldberg Finnegan Cannon LLC and Nicholas Conlon of Brown LLC

• Defendant: Jeremy Daniel Camacho of Gordon Rees Scully Mansukhani LLP

Representatives for the parties did not immediately respond to requests for comment Wednesday.

The Call Center Workers Disability lawsuit underscores the importance of fair wage practices in nonprofit call centers and the protections offered under federal labor law, ensuring employees are paid for all hours worked, including pre-shift and meal break tasks.