Call Center Workers Are Employees, DOL Tells 9th Circ.

Law360 (May 13, 2021, 4:37 PM EDT) -- The U.S. Department of Labor urged the Ninth Circuit to uphold a Nevada federal court ruling that a telemarketing business misclassified call center workers as independent contractors and owed nearly $1.5 million in damages, in a case the government has flagged as "significant."

In a brief on Wednesday, the DOL said the lower court had properly rejected arguments by Wellfleet Communications and related entities that an Internal Revenue Code provision designating "direct sellers" as nonemployees applied to Fair Labor Standards Act exemptions.

"The IRC provision, by its terms, plainly limits its applicability to federal tax law," the DOL said in the...

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