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In a significant development, PSCU Inc., a customer service organization serving credit unions, has informed a Michigan federal court that they have reached a settlement with a group of hourly call center workers. The workers had filed a Fair Labor Standards Act (FLSA) collective action claiming that the company owed them wages for the time spent booting up computers before their shifts.

Agreement in Progress

According to a joint status report filed by PSCU Inc. and the workers on Friday, they have made substantial progress in settling Connie Brown's FLSA collective action. Brown and her fellow workers had previously gone through two rounds of mediation. While the final terms are still being negotiated, the parties have confirmed their intention to file the proposed agreement within the next 30 days.

Background

This legal journey began in December, when a federal judge conditionally certified a collective of hourly call center workers based in Michigan. PSCU Inc., which provides services to credit unions, employed these workers from June 2017 up to the conclusion of the suit. The judge's ruling also denied PSCU's attempt to sanction Connie Brown for not adhering to a local Michigan court rule that requires conferring with the company before filing a motion for certification.

The judge's decision was based on the fact that Brown was unaware of the local rule, and while conferring would have streamlined the proceedings, the parties were able to resolve some certification-related disputes outside the courtroom.

Additionally, PSCU had sought to impose a 12-page discovery questionnaire to be submitted along with class members' consent to participate, a request that was also rejected in December.

The Heart of the Matter

Connie Brown initiated the lawsuit in June 2020, alleging that PSCU violated the FLSA by mandating call center employees to invest time in starting up their computers and logging into work-related programs before officially clocking in for their shifts. This daily pre-shift routine consumed up to 20 minutes of the employees' time, according to Brown.

The call center workers at PSCU were only considered "on the clock" when they began taking calls. Failure to arrive early to perform the off-the-clock startup tasks could result in disciplinary action. Furthermore, workers had to curtail their meal break times to log back into essential programs, depriving them of their full break entitlement.

As of now, representatives for both parties have not responded to requests for comments.