Sprint May Owe $4.5 Million To Laid Off Call Center Workers

Addendum: Contrary to Sprint’s initial statements in announcing layoffs on March 18, Sprint said on April 2 that it had provided the pay and benefits required under state and federal laws. However, it’s clear that Sprint did not meet its requirements to give workers 60 days’ notice before terminating their jobs on March 25, or the 90 days’ notice required in New York. The following is in response to Sprint’s newer statement on the layoffs.

Statement from Lynn Minick, Workforce Development Specialist, National Employment Law Project:

By Sprint's own account, laid off employees' last day of work (March 25) was one week after its announcement (March 18). Sprint violated the WARN requirement that companies must provide notification to affected workers; to the State dislocated worker unit; and to the appropriate unit of local government 60 days' before work ends for laid off employees.

The advance notice is intended to give workers and their families transition time to adjust to the prospective loss of employment, to seek and obtain other employment, and, if necessary, to enter skill training or retraining programs that will allow these workers to successfully compete in the job market. By not providing the appropriate notice, Sprint not only made it harder for laid off workers, but also for the state and local workforce development officials who are responsible for providing reemployment and retraining assistance to the dislocated workers.

WASHINGTON, D.C., April 1, 2014 – Sprint may owe up to $4.5 million in back pay to 1,440 workers laid off in March without the 60 days’ notice required by federal and state laws. The workers may also be eligible for Sprint employee benefits through May 17 under the laws. Sprint announced the call center layoffs on March 18, and said the jobs would end March 25, with pay through April 8.

Workers who could see the payouts include 400 call center workers in Altamonte Springs, Florida near Orlando (MyNews13); 450 in Fort Worth, Texas (Star-Telegram); 240 in Sacramento, California (Sacramento Bee); 200 in Overland Park, Kansas near Kansas City (Kansas City Star); and 154 in Elmsford, New York near White Plains (Lohud.com).

The call center workers would be due an average of as much as $3,100 in back pay. The calculation assumes a five-day workweek at 8 hours per day during the 60-day period and a $14 starting hourly wage cited by press reports for one of the locations (see Sacramento Bee).

The federal Worker Adjustment and Retraining Notification Act (WARN) requires 60 days’ notice before an employer cuts pay and benefits in the event of mass layoffs. Similar laws in California and New York require employers to continue pay and benefits to laid off employees for 60 days, with New York also requiring 90 days’ notice.

“Companies are required to give ample notice of layoffs so employees have time to prepare for the loss of income and find a new job,” says Christine Owens, Executive Director of the National Employment Law Project. “Companies that violate these laws disregard the painful disruption layoffs cause for workers and their families.”

Softbank acquired Sprint in June 2013. Sprint laid off more than 1,900 employees in March and 800 employees in August 2013. The company also said in March it is closing 150 customer phone repair locations and 55 retail stores.

Sprint Chairman Masayoshi Son gave an interview on the Charlie Rose show and a speech at the U.S. Chamber of Commerce in D.C. in March arguing that a potential merger with T-Mobile would benefit U.S. consumers. The Justice Department and FCC would have to approve the merger after an antitrust review, and top officials have voiced opposition to consolidation among wireless providers.

“A Sprint violation of the WARN laws would be another indication that an acquisition of T-Mobile is bad news for American workers as well as for consumers,” said George Kohl, senior director for legislation and policy for the Communications Workers of America.  “Combining Sprint’s lack of respect for its employees with T-Mobile will not drive more investment, job creation, and innovation than already exists in today’s competitive market.”

Sprint May Owe $4.5 Million To Laid Off Call Center Workers (CWA news release, Apr. 1, 2014)