Cingular to Pay $5.11 Million in Back Pay

Cingular Wireless said Thursday that it would pay $5.11 million in back wages to 25,351 customer service employees to settle government charges that it violated federal overtime laws.

Cingular, which didn’t admit liability, agreed to the settlement after a Labor Department probe at a call center in Springfield, Ill., found that the company failed to keep track when employees started work before their scheduled shifts or continued to work after the shifts ended.

The agreement, which requires approval of a federal judge, covers current and former workers at 25 call centers in 13 states over a period of about two years and amounts to about $202 per person. Cingular spokeswoman Rochelle Cohen declined to comment on the settlement’s effect on earnings.

Three of the call centers involved are in California -- in Atwater, Pleasanton and Rosewood.

Labor law requires employers to keep accurate payroll records and pay at least time-and-a-half wages after more than 40 hours of work. In 2003, Deutsche Telekom’s T-Mobile USA Inc. agreed to pay $4.78 million in back wages over similar allegations.

Atlanta-based Cingular is owned by SBC Communications Inc. and BellSouth Corp. Shares of San Antonio-based SBC fell 38 cents to $24.43. Atlanta-based BellSouth dropped 11 cents to $26.99. Both trade on the New York Stock Exchange.