Feds cited Conduit Global’s parent company last year for violating minimum wage laws – Insurance News

23 March–But 22 January, Tenasi Governor Bill Hasalam Leaded a rally at Fedexforum with a huge screen, which announced: “1,000 new jobs.”

Halam and local leaders announced that a call center would open Shelby countyEver heard about something run by an organization: Kondit Global.

While state officials offered grants and appreciated the call center for promising 1,000 jobs in an area hungry for work, a major fact was ignored in the celebration.

According to the federal government, Kondit Global repeatedly broke labor laws, failing to pay record-maping violations and overtime and minimum wages.

Between 2009 and 2013, New york The firm reduced more than 14,000 people across the country, American labor department They say.

The situation reflects a broader tendency.

In an era, when economic developers across the country eagerly gave tax break to companies in the name of employment generation, the process of wearing companies and interacting with them is often secretly. Taxpayers sometimes know very little about companies they are supporting.

Labor region

Kondit Global is a brand name for KGB USAA New york East <स्थान> Firm established by Wall Street Executive Robert Pines,

Quickly calls the business Knowledge production bureau And on KGB, also the name of former Soviet spy agency.

A few years ago, KGB advertised a service called 542542 – people could recite questions on that number from their cellphones. A company’s website lists something: “Why does the year wax turn brown inside your ear?” “How to get South West Airlines boarding pass?” “Which bullet has published AZ 012 on it and Oblong White?”

North came from operators finding internet at home.

These operators, known as “special agents”, were paid five 10 cents Per north and often less than minimum wages are earned $ 7.25 According to court records, per hour. The company called him an independent contractor, but American labor department Officials argued that they were employees under federal protection.

After three years of investigation, the company agreed January 2013 To compromise without accepting or rejecting allegations. 14,568 current and former employees spread across the country were paid back wages. Total wages $ 1.3 million – It is making one Labor department Last year’s biggest cases.

Settlement “was a decision based on the risk for business,” Jennifer NelaniCondit Global General Counsel. “We did not want to allocate any more resources to fight it and we came with a compromise that we thought it was an acceptable amount based on the resources that were in terms of internal resources and legal fees, which were protecting the lawsuit that was moving forward.”

Tax payer aid

Should the company quoted by the US government receive taxpayer support? That question was not clearly debated publicly Tenasi Officers.

Tenasy State Funding Board reviews Condit Global Project February 5 appointment Nashville And approved $ 2 million In subsidy, but in the minutes of the meeting there is no record that board members discussed Labor department Action.

And by late Thursday, the state still refused to issue some documents related to the subsidy deal, including the company’s applications for funding one of the two grant agreements.

The exemption of the state’s public record law allows the government to withdraw the record until a contract is completed, Erin HoltSpokesman for TenasyDepartment of Economic and Community Development,

Know about state-level recruitors American labor department Action, said Clint BreverAn assistant commissioner with Tenasi Department of Economic Development.

“The company definitely did not try to hide it,” he said.

Landing drain global

The state moved forward due to several factors. “First, it was a very good project Shelby county And for the city Memphis“Brever said.” It was a lot of job count. Those jobs are needed. ,

He also said that there is no plan to repeat in the company Memphis The “piecework” business model that put them in trouble. “Being this case, we felt comfortable to move forward,” Brever said.

In MemphisOfficers were not closed by firm’s actions.

“Some of our most important and successful local companies have run into issues,” Reed dulbergerProminent, economic development development engine of edge.

While Greater Memphis Chamber recruits companies, Dulberger’s agency connects them to local subsidies, including property tax rollbacks. Kondit Global has not applied for the age tax break.

The Edge will check the background of the company, but if they have problems, they will not automatically rule them.

“Nobody would say that we should not work with them,” said Dulberger. “Other communities will like them.”

Who is KGB?

Established in 1992 as Infonxx, Pines began using espionage references in the advertisement after changing the name in KGB. He is still the chairman.

When KGB and the kingdom interacted, the perception of espionage got stuck Memphis Project. Its code name was Project Moscow.

Today, KGB’s major businesses include directory assistance services Europe And customer service call center like one Memphis,

In January 2010, American labor department Started an inquiry of salary for KGB’s “Special Agents” fielding questions.

“It was particularly challenging that it was the fact that there were a large number of workers who had spread the whole whole United States,” Said Alphonso grystinaWho looked after Labor department Test.

Gristina said that many companies confuse employees as an independent contractor, and this practice damages the economy.

“This is an epidemic. It’s an epidemic,” he said, contractors are not protected by compensation of workers, often do not pay. social Security The system, and in some cases the minimum wages are not received.

“And it is killing the states, because the employer, when they do so, are not paying in various state funds: the compensation fund of the workers, the unemployment compensation fund,” said Gristina.

tax breaks

Very few states and cities stopped economic incentives from companies who have faced regulatory action Greg Leroy First good jobs, A Washington-The unstable groups that criticize subsidy.

While many states and cities set wages standard for jobs they recruit, Tenasi Does not Clint BreverState spokesman said Tenasi Unemployment rate, number of jobs and where the company is detecting, such as factor in data.

“But we do not pin a wage rate on the wall and say that this is what we have to hit,” he said.

In MemphisEdge sets a standard $ 10 Plus health insurance per hour for companies demanding local tax brakes.

Kondit Global is offering an base wage $ 9 Call center per hour.

Low wages or not, Memphien replied to Condit Global. About 900 participated in their job fair Cook Convention Center On Tuesday.

In the hungry field of jobs, only about 541,000 people are employed Greater Memphis – 52,000 less when the recession begins in 2007.

Dulberger said that heavy voting $ 9 Jobs show the fact that many out-of-work people lack job skills who are looking for employers.

He said that Economic Development Recruitors cannot set high wage standards.

“Condit Global is not going to offer more money to an employee because we have a high standard,” said Dulberger. “They will just go somewhere else.”

542542

As it prepares to open a call center Shelby countyjust beyond Memphis’ The city borders, Kondit Global, are no longer monitoring by the US Labor Department.

When the government recently changed the rules that controlled the customer 542542 text messages in the answer service, KGB shut down it, the company’s lawyer Nelni said.

Kondit was considering doing so anyway, he said, “Because it was not part of our development strategy.” Today’s smartphones allow users to surf on the web and research the ear wax by themselves.

Grister, The Labor department On the KGB investigation, the supervisor said that he suspects that the government needs to monitor the Kondit Global.

“I would say that it was very visible, we are confident that the employees would come forward if their compensation turns from legal to illegal,” Gristina said.

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