AT&T is facing a legal challenge from call-center employees who work at home. Their class action claims that the wireless phone giant violated their rights under the California Labor Code.
The suit, filed in a Northern California court, says AT&T wrongly labeled the workers as independent contractors, which the employees call an illegal scheme” that helps the carrier avoid workers’ compensation costs and some taxes.
The employees, who provide billing and technical support for AT&T customers, also claim the wireless operator deemed them independent contractors to get around wage and hour requirements. California labor laws such as minimum wage rules, lunch break requirements and overtime laws dont apply to independent contractors.