Summary Meet the Customer Service Reps for Disney and Airbnb Who Have to Pay to Talk to You — ProPublica www.propublica.org
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Arise is a customer service provider for big companies such as Airbnb, Disney and Intuit, which has been accused of misclassifying its agents and has been fined for labor violations.
Key Points
- Arise Virtual Solutions is a work-from-home customer service company that provides services to many corporations, but has been criticized for requiring agents to pay for their own cell phone data and equipment.
- Agents must pay for their own equipment and training, and fees from each paycheck. They can be "deskilled" if they don't meet performance metrics, and often make less than minimum wage.
- Arise has been accused of treating its agents as employees, leading to class-action lawsuits and being taken to court by lawyer Shannon Liss-Riordan.
- In 2018, the U.S. Supreme Court overturned a ruling allowing corporations to use arbitration clauses that bar employees from class-action lawsuits.
- Agents have little ability to take complaints to Arise itself, and must keep clients' identities secret and create the illusion of a professional office environment.
- Intuit is among Arise's largest revenue generators and has shifted from under 10% to over 65% work-at-home labor for its customer service.
Summaries
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Disney and Airbnb require customer service agents to pay for their own cell phone data, a form of wage theft. ProPublica interviewed former and current agents and employees at Arise's headquarters and contacted 38 corporations. Tami Pendergraft reported having to spend $1,500 on home office equipment and pass an assessment test and training before being able to field calls from AT&T customers. Yvonne Corder worked as an agent with Arise for seven years helping Disney customers with restaurant reservations. Agents are required to pay for their own equipment and training, and contracts often require weekend and holiday work, drug testing, and home audits.
Intuit is among Arise's largest revenue generators and has shifted from under 10% to over 65% work-at-home labor. In 2014, Arise was cited by the U.S. Department of Labor for failure to pay minimum wage or overtime, and in 2013, they settled a similar lawsuit in California for $1.245 million. Agents have little ability to take complaints to Arise itself, and some have reported receiving termination fees.
The pandemic has accelerated the trend of people working from home and being treated as independent contractors, and Arise is a major player in this underground industry. In 2016, the National Labor Relations Board took up the case of Matthew Rice, who had been misclassified as an independent contractor by Arise. After two days of hearings, Arise was found to owe Rice and another agent a total of $18,209.64. This ruling was overturned in 2018 due to the Epic Systems ruling enabled by the election of Donald Trump. Agents have pursued claims against Arise and won, with one agent being charged a $150 Contract Termination Fee after only working 23.2 hours and earning $278.40.
521 word summary
In 2016, an arbitrator ruled Arise misclassified its agents as independent contractors instead of employees and ordered them to rescind the waivers and notify current and former employees. In 2018, the U.S. Supreme Court overturned a ruling allowing corporations to use arbitration clauses that bar employees from class-action lawsuits, impacting vulnerable workers. Agents have pursued claims against Arise and won, with one agent being charged a $150 Contract Termination Fee after only working 23.2 hours and earning $278.40.
Intuit hired Arise to provide customer service workers (not employees), and agents must make it look like they are in a professional office environment, even though they are working from home. Arise faced numerous federal class-action lawsuits for exploitative practices, such as requiring agents to pay for training with no guarantee of pay.
The pandemic has accelerated the trend of people working from home and being treated as independent contractors, and Arise is a major player in this underground industry. Arise's CEO Scott Etheridge reported explosive growth during the pandemic, up to 70,000 agents. Arise provides customer service agents to big companies like Airbnb and Disney. Agents are independent contractors and must pay for their own equipment and training. ProPublica obtained records that provide a close look at Arise, including arbitration hearings, financial slides, corporate contracts and other records.
In 2016, the National Labor Relations Board took up the case of Matthew Rice, who had been misclassified as an independent contractor by Arise. After two days of hearings, Arise was found to owe Rice and another agent a total of $18,209.64. This ruling was overturned in 2018 due to the Epic Systems ruling enabled by the election of Donald Trump.
In 2014, Arise was cited by the U.S. Department of Labor for failure to pay minimum wage or overtime, and in 2013, they settled a similar lawsuit in California for $1.245 million. Agents have little ability to take complaints to Arise itself, and some have reported receiving termination fees. Previous Independent Business owners include a minister in Georgia, YouTubers, and Omarosa Manigault Newman. Yvonne Corder worked as an agent with Arise for seven years, helping Disney customers with restaurant reservations. Arise is a company that allows people to be their own boss and set their own hours. Agents are required to pay for their own equipment and training, and fees from each paycheck. Contracts often require weekend and holiday work, drug testing, and home audits. Intuit is among Arise's largest revenue generators and has shifted from under 10% to over 65% work-at-home labor.
Disney and Airbnb require customer service reps to pay for their own cell phone data while talking to customers, which is seen as a form of wage theft. Arise Virtual Solutions provides services to many corporations, but ProPublica interviewed former and current agents and employees at Arise's headquarters and contacted 38 corporations that have contracted with Arise. Most declined to comment, but Signet "paused" their relationship pending further due diligence. Tami Pendergraft, an Arise agent, reported having to spend $1,500 on home office equipment and pass an assessment test and training before being able to field calls from AT&T customers.
1321 word summary
Disney and Airbnb, two of the world's largest companies, require customer service reps to pay for their own cell phone data while talking to customers. This policy has been met with criticism from labor advocates and is seen as a form of wage theft. Arise Virtual Solutions, a work-from-home customer service company, is a pioneer in the industry and provides services to many corporations. ProPublica interviewed former and current agents and employees at Arise's headquarters and contacted 38 corporations that have contracted with Arise. Most declined to comment, but Signet "paused" their relationship pending further due diligence. Tami Pendergraft, an Arise agent, reported having to spend $1,500 on home office equipment and pass an assessment test and training before being able to field calls from AT&T customers. Arise is a company that offers people the ability to be their own boss and set their own hours. Agents are required to pay for their own equipment and training, and fees from each paycheck. Contracts often require weekend and holiday work, drug testing, and home audits. Intuit is among Arise's largest revenue generators and has shifted from under 10% to over 65% work-at-home labor for its customer service. Arise was acquired last year by Warburg Pincus and reported $40 million in revenue with a gross profit margin of nearly 30%. Agents can be "deskilled" if they don't meet Intuit's performance metrics and may not make enough money to cover their costs. Yvonne Corder worked as an agent with Arise for seven years, helping Disney customers with restaurant reservations and having to say "Have a magical day" even to angry customers. Agents must keep clients' identities secret and create the illusion of a professional office environment. Arise recruits agents through Independent Businesses, marketed as entrepreneurial opportunities, with most owners being people of color and women. Agents make around $9 an hour and are subject to sexual harassment and metrics monitoring.
Previous Independent Business owners include a minister in Georgia, YouTubers, and Omarosa Manigault Newman. When asked for an interview with executives, Arise provided the names of three Independent Business owners. Two reported positive experiences, while the third cancelled their interview; one of the three had been convicted of felony wire fraud.
Arise has been accused of treating its agents as employees, leading to new terminology in 2012 and its legal department monitoring language to reinforce that agents are not employees. Agents have little ability to take complaints to Arise itself. Krystin Davenport quit after a month and received an invoice with a $150 "Contract Termination Fee".
In 2014, Work at Home Solutions was cited for 44 violations by the U.S. Department of Labor for failure to pay minimum wage or overtime. In 2013, Arise settled a similar class-action lawsuit in California for $1.245 million. Tami Pendergraft joined a federal class-action lawsuit against Arise; however, it was kicked out due to a waiver requiring any legal claims to be handled through arbitration. In 2016, the National Labor Relations Board (NLRB) took up the case of Matthew Rice, represented by Shannon Liss-Riordan, who had been misclassified as an independent contractor by Arise Virtual Solutions. After two days of hearings, it was determined that Rice was an employee of Arise, and two arbitrators ruled that Arise owed Rice and an agent a total of $18,209.64. The NLRB had previously concluded that employers cannot make employees waive their rights to class action. In August 2018, this ruling was overturned due to the Epic Systems ruling, which was enabled by the election of Donald Trump and his nomination of Neil Gorsuch.
ProPublica is seeking information about customer service jobs at big companies like Apple, Intuit, Disney and Airbnb. Seven customer service representatives have revealed what it's like to work in customer service. Arise still requires class-action waivers and categorizes agents as independent contractors, and has stopped enlisting agents who live in certain states with tighter rules protecting workers.
For media inquiries, contact [email protected] for permission for photographs or illustrations. Any website our stories appear on must include a prominent and effective way to contact us, and we appreciate being tagged in social media posts with our official accounts on Twitter, Facebook and Instagram. You must not imply that donations to your organization support ProPublica’s work. Arise is a company that provides customer service agents to companies like Airbnb and Disney. Agents are independent contractors, and must pay for their own equipment and training, as well as fees to Arise. ProPublica obtained records that provide a close look at Arise, including arbitration hearings, financial slides, corporate contracts and other records.
Arise offers an opportunity for people with limited mobility or options to find freedom and a reliable source of income. However, despite the layers of legal paperwork between them, brand-name companies can still retain strict control over agents at the bottom. Agents must often work set hours, submit to drug tests, and pay for training and fees, resulting in pay after costs that can dip below minimum wage.
Tami Pendergraft was one such agent who experienced these challenges and eventually quit; she testified that she felt like no one cared and then sued. The pandemic has accelerated the trend of people working from home and being treated as independent contractors, and Arise is a major player in this underground industry. Arise's CEO Scott Etheridge reported explosive growth during the pandemic, up to 70,000 agents. Arise faced numerous federal class-action lawsuits from 2011-2016 for its exploitative practices, such as requiring agents to pay for training with no guarantee of pay. It was founded in the late 1980s in Toronto by Richard Cherry, and was acquired last year by Warburg Pincus. The company markets itself as fostering the growth of small businesses run by women and minorities. Intuit, a financial software company, hired Arise to provide customer service workers (not employees). Agents are "deskilled" (fired) if their performance is not up to par. Agents must make it look like they are in a professional office environment, even though they are working from home. Yvonne Corder worked as an agent with Arise for seven years and had to pretend to be in Orlando, Florida even though she lived in Arkansas, using code names such as "Diva Cruise" for Princess Cruises and "The Fruit" for Apple. In 2014, Arise, an outsourcing company, reported over 200,000 agents, mostly women, working for them. Agents paid fees to the company as well as to the Independent Businesses they signed up with. Two of the three interviewed Business owners said it could be a good opportunity for people working from home. However, some Businesses have been accused of shortchanging their agents and there is limited ability for agents to take complaints to Arise.
In order to avoid classification as an employer, Arise carefully monitors language and changed terms like "hours" and "working" to "intervals" and "servicing." Despite this, agents have still pursued claims against Arise and won. For example, Krystin Davenport was charged a $150 Contract Termination Fee after only working 23.2 hours and earning $278.40.
When Shannon Liss-Riordan took Arise to court for classifying agents as independent contractors instead of employees, arbitrators ruled that Arise owed agents $11,683.64 and $6,526, respectively. At a two-day hearing, Matthew Rice testified that he worked from his bedroom helping customers of Arise's clients and referred to performance facilitators as supervisors. An administrative law judge ruled that Arise's business structure was an "elaborate construct" designed to portray the agent as an independent contractor. Arise has continued to require class-action waivers and classify agents as independent contractors, but not in states with tighter worker protection laws. In 2018, the U.S. Supreme Court overturned a ruling allowing corporations to use arbitration clauses that bar employees from class-action lawsuits. This had a major impact on vulnerable workers.
In 2016, an arbitrator ruled Arise misclassified its agents as independent contractors instead of employees and ordered them to rescind the waivers and notify current and former employees.
3927 word summary
This site is protected by reCAPTCHA and is subject to the Google Privacy Policy and Terms of Service. Sign up for ProPublica's Big Story newsletter to get the latest stories delivered straight to your inbox. ProPublica is a non-profit newsroom dedicated to journalism in the public interest. Donate, contact us, or access our RSS Feed, podcasts, newsletters, and more. Browse our site for a range of additional resources such as reports, awards, and initiatives. Follow us on Twitter and Facebook or visit The Nerd Blog for more information. In 2016, an arbitrator ruled that Arise, a customer service company, had misclassified its agents as independent contractors instead of employees. This meant that the mandatory class-action waivers they required agents to sign were in violation of federal law. He ordered Arise to rescind the waivers and notify all current and former employees.
However, in 2018, the U.S. Supreme Court overturned this ruling in Epic Systems Corp. v. Lewis, allowing corporations to use arbitration clauses that bar employees from class-action lawsuits. This had a major impact on vulnerable workers, as Justice Ruth Bader Ginsberg noted in her dissent.
Arise has continued to require class-action waivers and categorize agents as independent contractors. However, they do not enlist agents from certain states with tighter rules protecting workers. Recently, Arise announced it would honor Juneteenth as an official company holiday, but customer service agents (many of whom are Black) would not get the day off as they are treated as independent contractors. Arise was taken to court by lawyer Shannon Liss-Riordan for classifying agents as independent contractors instead of employees. In two cases, arbitrators ruled that Arise owed agents $11,683.64 and $6,526, respectively. Liss-Riordan then took the case to the National Labor Relations Board, which held a two-day hearing in May 2016. Matthew Rice testified that he worked from his bedroom, helping customers of Arise's clients, and referred to performance facilitators as supervisors. Patricia Rice, Matthew's mother, said her corporation had signed up "at least 50" agents over 10 or 11 years. Arise's lone witness was Robert Padron who described Arise's platform as "connective tissue" linking corporate clients with small businesses and their agents. In August 2016, an administrative law judge ruled that Arise's business structure was an "elaborate construct" designed to portray the agent as an independent contractor. A class action lawsuit was filed against Arise, but the judge dismissed it since the plaintiffs were bound to Arise's arbitration clause. This was due to a similar 2013 case in which Arise had to pay $1.245 million without admitting any wrongdoing.
Pendergraft then went to arbitration, where she was represented by Shannon Liss-Riordan, a labor law expert. She argued that Arise was trying to deter claimants from taking legal action with the inefficiency of individual arbitration.
The arbitrator, Deborah Hankinson, used the "economic realities test" to determine if Pendergraft was an employee or an independent contractor. Five of the six factors suggested she was an employee.
Hankinson found that Arise was required by federal law to pay Pendergraft the minimum wage of $7.25 an hour and cover her training time and equipment expenses. In total, Arise owed Pendergraft $5,841.82, but could have faced lower damages if they had consulted a labor law expert. Arise, a company providing work to independent contractors, has created an "elaborate construct" to avoid being seen as an employer. They carefully monitor the language agents use and have changed terms like "hours" and "working" to "intervals" and "servicing." They also changed the corporate link from being called Virtual Services Corporations to Independent Businesses. Despite this, agents have still pursued claims against Arise and won. For example, Krystin Davenport, an agent in Las Vegas, was charged a $150 Contract Termination Fee after only working 23.2 hours and earning $278.40, reducing her total pay to $58.45 per hour. In 2014, Arise, an outsourcing company, reported that over 200,000 people worked as agents for them. Most of these agents were women and most of the businesses they worked for had just one agent. To work with Arise, agents would have to pay fees to the company as well as to the Independent Business they signed up with. Arise has its Independent Businesses help recruit agents and some offer referral fees. The Independent Businesses have been run by various people, including Omarosa Manigault Newman and a minister in Georgia. Two of the three Independent Business owners interviewed by NPR said that while Arise’s system has its flaws, it can be a good opportunity for people working from home. However, some Independent Businesses have been accused of shortchanging their agents and there is limited ability for agents to take complaints to Arise itself. Agents working for Arise, a virtual call center platform, must keep the identity of the companies they serve a secret, adopting code names such as "Diva Cruise" for Princess Cruises and "The Fruit" for Apple. Yvonne Corder worked as an agent with Arise for seven years and had to pretend to be in Orlando, Florida even though she lived in Arkansas. She had to say phrases like "How can I make your trip more magical?" and "Have a magical day" even to customers who were frustrated with her.
Corder worried constantly about her job, as she needed it to support her family of four. She received creepy calls from customers, and was unable to help them when their items were taken down by glitches on eBay, resulting in her customer-satisfaction scores tanking and her eventual termination.
Arise markets itself as fostering the growth of American small businesses run by women and minorities. Arise Virtual Solutions Inc. is a company founded by mogul Barry Diller and the Hunt family of Texas. It provides customer service to large companies, such as Virgin Atlantic, JetBlue and Staples. In 2009, the company's CEO was invited to a jobs summit at the White House and received a shoutout from President Barack Obama.
Arise was acquired last year by Warburg Pincus, a New York private equity firm. A confidential slide deck showed quarterly revenue of $40 million and a gross profit margin of nearly 30%.
Agents work from home and must make it appear as though they are working from a professional office environment. Arise training materials advise agents to invest in carpet and solid-core doors to muffle sound. Agents also use white noise machines or manufactured sound to drown out the sounds of home. Intuit, a financial software company, had difficulty achieving cost goals prior to the pandemic. To solve this, they turned to Arise, a company that provides an army of workers (not employees) to do customer service. Intuit has control over these workers, providing training materials and having access to detailed performance data. Agents can be "deskilled" (fired) if their performance isn't up to par. Intuit was able to cut costs by more than 15%, with over 65% of customer service work-at-home labor being provided by contractors.
Arise was founded in the late 1980s in Toronto by serial entrepreneur Richard Cherry, with an early client being the Home Shopping Network. They recruit more agents than needed to ensure they can fulfill corporate clients' demands. This leaves agents spending money on training with no guarantee of enough hours to make it worth it. Arise faced multiple federal class-action lawsuits from 2011-2016 for its exploitative practices. One woman in Georgia reported paying $99 for initial training and then paying up to $279 each for six other training sessions, totaling around $1,000 with no pay. Another woman in Florida reported working 117.5 hours in two weeks with no overtime payment. A third agent reported being subject to 40 performance measures, with failure to meet any one of them resulting in termination. Arise declined to comment on specific cases but claimed transparency and freedom of choice in its statement. For corporate clients, Arise offers contractual distance without loss of control while providing assurance of American voices on the line. Arise offers an opportunity for people with limited mobility or options to find freedom and a reliable source of income. However, despite the layers of legal paperwork between them, the brand-name company at the top can still retain strict control over agents at the bottom. Agents are often required to work set hours, submit to drug tests, and pay for training and fees. The pay after costs can dip below minimum wage. Tami Pendergraft was one such agent who experienced these challenges and eventually quit. She testified that she felt like no one cared and then sued. Arise® Platform has been providing positive outcomes for Service Partners for 25 years. ProPublica contacted 38 corporations that have contracted with Arise and Signet, the corporation that owns Zales, Kay, and Jared jewelers, "paused" its relationship with Arise pending further due diligence. Most corporations either didn't respond or declined to answer questions. Arise's CEO Scott Etheridge reported explosive growth during the pandemic, up to 70,000 agents.
Tami Pendergraft spent three weeks fielding telephone calls from AT&T customers and received a single paycheck of $96.12. Arise charges both corporate clients and its network of workers, composed overwhelmingly of women and people of color. It advertises the ability to be one's own boss and set one's own schedule. Arise is a company that provides customer service agents for companies like Amazon, Apple, and AT&T. It allows companies to quickly add or subtract workers and offers lower overhead costs than a traditional call center. The pandemic has accelerated the trend of people working from home and being treated as independent contractors, and Arise is a major player in this underground industry.
ProPublica obtained records that provide a close look at Arise, including arbitration hearings, financial slides, corporate contracts and other records. Interviews with dozens of current or former agents and employees at Arise's corporate headquarters revealed that agents must sign nondisclosure agreements. Arise said its system is a boon for its "Service Partners" and offers significant flexibility. Airbnb recently laid off 25% of its workforce and provided generous severance packages to those affected. Meanwhile, Arise Virtual Solutions, a little-known company, provides customer service agents for many well-known corporations, including Airbnb and Disney. The agents are independent contractors and must pay for their own equipment and training, as well as fees to Arise. Despite legal challenges, Arise has been able to maintain its model. This is due in part to a Supreme Court ruling. To republish ProPublica stories, you must credit ProPublica and any co-reporting partners, link to the URL of the story on propublica.org, include all of the links from the story, use the PixelPing tag, and adhere to the Creative Commons License (CC BY-NC-ND 3.0). You cannot edit the material, republish it wholesale or automatically, use it to populate a website for search engine optimization, or sell it separately or syndicate it. You must not imply that donations to your organization support ProPublica’s work. For photographs or illustrations, contact [email protected] for permission. We appreciate being tagged in social media posts. Our official accounts are on Twitter, Facebook and Instagram. Any website our stories appear on must include a prominent and effective way to contact you. Seven customer service representatives reveal what it's like to work in customer service, caught between abusive callers and demanding employers. A new suit seeks to turn arbitrations, a tool of big corporations, against a top customer service provider, Arise Virtual Solutions. This spring, Arise announced it would honor Juneteenth as an official company holiday, giving employees a day off and donating a portion of its revenue to the NAACP Legal Defense and Educational Fund. However, Arise still requires class-action waivers and categorizes agents as independent contractors. It has also stopped enlisting agents who live in certain states with tighter rules protecting workers.
ProPublica is seeking information about customer service jobs at big companies like Apple, Intuit, Disney and Airbnb. Anyone with information is encouraged to contact Ariana Tobin at [email protected] or Justin Elliott via Signal at (774) 862-6240. In August 2018, Muhl's ruling in the Arise case was overturned due to the Epic Systems ruling. Justice Ruth Bader Ginsberg wrote the dissent, saying it would lead to under-enforcement of laws protecting vulnerable workers. This ruling was made possible by the election of Donald Trump and his nomination of Neil Gorsuch to the U.S. Supreme Court, who wrote the majority opinion in Epic Systems Corp. v. Lewis.
Muhl found that Arise had misclassified Rice as an independent contractor and ordered them to stop requiring agents to sign class-action waivers, as well as rescinding all waivers already signed. He found that Arise's business structure was an "elaborate construct" to portray agents as independent contractors, despite the reality of their relationship.
During questioning, Rice and his mother Patricia revealed that her corporation had likely signed up at least 50 agents over 10-11 years and that Rice referred to his supervisors as such while providing services. Matthew Rice testified in a two-day hearing in Miami before an administrative law judge in May 2016. The National Labor Relations Board (NLRB) took and argued the side of Rice's client, represented by Shannon Liss-Riordan. The NLRB had previously concluded that employers cannot make employees waive their rights to class action, but this did not cover independent contractors.
Liss-Riordan tried a different legal tactic, turning to the NLRB as Rice had been classified as an independent contractor. In two cases, arbitrators ruled that Arise owed Rice and an agent $6,526 and $11,683.64 respectively. The Fair Labor Standards Act requires employers to pay the minimum wage of $7.25 an hour and cover training and equipment expenses.
The arbitrator determined that five of the six factors in the economic realities test suggested Arise had been an employer of Rice and the sixth could go either way. Arise argued that Rice had signed agreements stating she was not an employee and had never submitted a job application. In the end, the arbitrator concluded that Rice was an employee of Arise. Tami Pendergraft, a Houston woman, joined a federal class-action lawsuit against Arise, an outsourcing company that hires independent contractors to assist customers. The lawsuit was kicked out of court due to a waiver requiring any legal claims to be handled through arbitration. Pendergraft's lawyers argued that Arise thought no one would go through the trouble for so little return. In 2013, Arise settled a similar class-action lawsuit in California for $1.245 million.
Krystin Davenport, another Arise agent in Las Vegas, quit after about a month and received an invoice for $278.40, with $69.95 taken out for Arise's services and a $150 "Contract Termination Fee." She was warned not to discuss pay with other agents or else face termination. Arise refers to its agents as CyberAgents, Arise Certified Professionals, Client Support Professionals, Onshore Brand Advocates and Service Partners. Arise, a company that has been accused of treating its agents as employees, has implemented new terminology in 2012 to avoid this misconception. Terms such as Virtual Services Corporations became Independent Businesses and Service Fees became Service Revenue. Arise's legal department has become a kind of word police, monitoring the language agents use to reinforce that they are not employees. Agents also have little ability to take complaints to Arise itself and are typically told that it has no responsibility for adjudicating any disputes.
Arise targets potential recruits with promises of cash and work-life balance. However, some Independent Businesses have been accused of shortchanging their agents. In 2014, Work at Home Solutions was cited for 44 violations by the U.S. Department of Labor for failure to pay minimum wage or overtime.
When ProPublica and NPR's "Planet Money" asked Arise for an interview with any executives, it provided the names of three Independent Business owners who could talk about their experiences with Arise. Two reported positive experiences, while the third cancelled their interview. One of the three owners had previously been convicted of felony wire fraud.
Those who have run Independent Businesses include a minister in Georgia, those who pitch potential agents on YouTube, and even Omarosa Manigault Newman, the former “Apprentice” contestant who later worked in the Trump White House. Arise uses Independent Businesses to recruit agents and sometimes offer referral fees. They market these businesses as entrepreneurial opportunities, with 64% of owners being people of color and 89% being women. Agents, who are often the same person who created the business, are employed by Arise yet have no access to any software or personnel. They can be subject to sexual harassment and have to monitor their metrics closely. Agents make around $9 an hour, and must work under difficult conditions such as handling calls from angry customers and not being able to take bathroom breaks. Yvonne Corder worked as an agent with Arise for seven years, helping Disney customers with restaurant reservations. She had to say "Have a magical day" even to customers who were angry. Agents must keep the identity of their clients a secret, using code names like “Diva Cruise” for Princess Cruises and “The Fruit” for Apple. They must also create the illusion that they are working from a professional office environment.
Krystin Davenport worked from home in Las Vegas for Arise, helping Intuit customers with TurboTax software. She wore a white polo shirt and sat in front of a TurboTax-blue screen to create the impression that she was an employee of Intuit. The job paid $12 an hour and allowed Davenport to stay home with her two kids. Arise, a privately held company, was acquired last year by Warburg Pincus, a New York private equity firm. Founded in the late 1980s as Willow Corp., it was relaunched in Florida in the mid 1990s by serial entrepreneur Richard Cherry and gained traction with customers such as Virgin Atlantic, JetBlue, and Staples. It reported revenue of $40 million and a gross profit margin of nearly 30% in 2017.
Intuit is among Arise's largest revenue generators and has shifted from under 10% to over 65% work-at-home labor for its customer service. Intuit was able to cut its customer service costs by more than 15%, even as its needs increased.
For agents, this means spending hundreds of dollars on training equipment and fees, and potentially never getting enough hours to make the investment worth it. Agents can be "deskilled," or fired, if they don't meet Intuit's performance metrics. Intuit has control over call agents it hires through Arise and other contractors, providing training materials and receiving performance data. Agents have tried to manipulate the software, such as by turning up their TV to reduce non-talk time. Intuit has had trouble achieving cost goals due to low unemployment and rising wages. For corporate clients, Arise offers contractual distance without loss of control while keeping American voices on the line. Quality assurance performance facilitators use a 40-item checklist to score agents who help customers for Barnes & Noble, with failure to meet any one of the 25 requirements allowing Arise to terminate the job. Tami Pendergraft joined Arise in 2012 in search of a job that allowed her to work from home. Her contract listed 25 performance measures, including an Average Handle Time between 6 minutes, 40 seconds and 12 minutes, 20 seconds, and a maximum of 0.5% of calls requiring additional follow-up. Other measures included a maximum of $2.50 in refunds/deductions per call and a maximum hold time of 30 seconds. To become certified, Pendergraft paid $199 for training, which required 50-55 hours of unpaid work. She also paid upfront fees for training for each company she worked with. When she couldn't get enough hours to meet her contractual requirements, she quit and joined federal class-action lawsuits against Arise. The Arise business model requires customer service reps to pay for their own equipment and training, along with fees from each paycheck. Agents often find that after costs, the pay is below minimum wage. Contracts can require weekend and holiday work, drug testing, and home audits. Agents are tightly controlled with rigid standards and can be quickly terminated. Arise targets those with limited options, claiming they can be their own boss and set their own hours. Many agents find success, while Arise charges both corporate clients and the network of agents to act as the middle link. Pendergraft was an agent in this network, four links removed from the big company at the top. For $96.12, she paid for the equipment and training required to work. Tami Pendergraft spent $1,500 on home office equipment and passed Arise’s voice-assessment test, nondisclosure form, and introductory training before being asked to pay for an additional 10 days of training. She then signed up for hours and began fielding calls from AT&T customers.
ProPublica contacted 38 corporations that have contracted with Arise and found that most declined to comment. Signet, who owns Zales, Kay, and Jared jewelers, “paused” their relationship with Arise pending further due diligence.
Arise executives declined to be interviewed and provided a statement saying their platform offers flexibility for their Service Partners. ProPublica obtained records such as arbitration hearings, financial slides, and corporate contracts that provide a close look at the company. They also interviewed dozens of former or current agents and employees at Arise’s corporate headquarters. The pandemic has caused a boom in the work-from-home customer service business. Arise, a company with American roots dating back to the 1990s, has been a pioneer in driving the current trends of working from home and treating workers as independent contractors. It provides services to major companies such as Airbnb, Comcast, Instacart, Disney, Amazon, Apple and AT&T, and offers cost savings of up to 30% compared to traditional call centers.
Agents working for Arise are independent contractors who pay for their own equipment and training and have fees deducted from their paychecks. In March, Instacart needed many agents, but by May these jobs had largely disappeared. Arise has faced legal challenges alleging that their arrangements with agents violate labor law, but has been able to maintain its model with the help of a Supreme Court ruling written by Trump appointee Neil Gorsuch.
Have you worked with a contractor such as Arise, Sykes, LiveOps or Concentrix? We want to learn more about how customer service works at big companies like Apple, Intuit, Disney and Airbnb. Do You Work in Customer Service? We’d Like to Hear About Your Work-From-Home Jobs. Get Involved. Arise Virtual Solutions is a work-at-home customer service company that helps large corporations reduce labor costs at the expense of workers. During the pandemic, the industry is booming. Arise's agents are forbidden from publicly identifying the companies whose customers they serve. Airbnb, for example, had to lay off a quarter of its workforce in May. CEO Brian Chesky offered a generous severance package, including 14 weeks of pay and continued health insurance. Meanwhile, Arise's agents receive no such benefits. Disney and Airbnb customer service reps are required to pay out of pocket to talk to customers.
Disney and Airbnb are two of the biggest companies in the world, yet their customer service reps have to pay out of pocket to talk to customers. This is a consequence of the companies’ cost-cutting measures.
The reps must use their own cell phones and must pay for the data they use while talking to customers. This policy has been in place since 2017 and has been met with criticism from labor advocates.
The companies claim that the policy helps them save money, but critics argue that it violates labor laws and is a form of wage theft. They also argue that it puts an extra burden on customer service reps, who already have low pay and limited job security.