New Federal OT Regulations Could Be a Boon for Contact Center BPOs

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Business owners are scrambling to prepare for a major change in federal overtime regulation, which is set to go into effect on Dec. 1.

In case you’re behind on the issue, here’s a basic rundown:

In May, the U.S. Department of Labor raised the national overtime threshold for salaried workers from $23,660 to $47,476 per year. Come December, employers will be required to compensate workers for time and a half if they exceed 40 hours in a given week. The Labor Department predicts the federal change will benefit about 4.2 million workers.

On one hand, the move is being heralded as a boon for salaried middle class workers, many of whom are consistently asked to work overtime without adequate compensation from their employers. On the flip side, there is widespread concern that many employers will struggle with the upcoming change.

Already, many businesses are forming strategies to absorb the losses they may incur once the federal overtime rule goes into effect.

It’s safe to assume that the business process outsourcing (BPO) industry could benefit from the upcoming overtime change, as employers attempt to bypass regulations by investing in third-party services. Outsourcing customer service operations could prove to be more cost-effective for employers, as most contact center agents in the U.S. make far less than the $47,476 overtime threshold.

Therefore, now is a good time to make sure your BPO organization is prepared for a possible influx of business come the new year. Bright Pattern can be an invaluable resource for your organization as you seek to grab your piece of the pie and onboard new clients, providing you with enticing leading customer service features—like scalability, flexible CRM integration, comprehensive analytics and more.

Don’t get blindsided in December. To learn more about how Bright Pattern can help your business, click here.

Sergey Menshikov

About Sergey Menshikov

Vice President of Product Management at Bright Pattern with 20+ years in the contact center space.

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