Keep Call Centers in America Act of 2025
Summary
The "Keep Call Centers in America Act of 2025" aims to prevent companies from relocating call centers overseas by imposing financial disincentives and requiring transparency in customer service communications. It mandates the Secretary of Labor to maintain a public list of employers who relocate call centers or contract call center work overseas, making them ineligible for federal grants and guaranteed loans for up to five years. The bill also requires businesses to disclose the physical location of customer service agents and the use of AI in communications, offering consumers the option to be transferred to a U.S.-based agent.
This legislation seeks to protect American jobs and ensure that consumers are aware of where their customer service is originating. It includes provisions for penalties for non-compliance and exceptions for situations that threaten national security or result in substantial job loss in the United States.
Furthermore, the Act directs the Secretary of Labor to report on federal call center work locations and mandates that federal contracts require call center work to be performed within the United States.
Expected Effects
The Act will likely lead to increased costs for companies that choose to offshore call center operations due to the loss of federal funding eligibility. Consumers may experience greater transparency in their customer service interactions, knowing the location of the agent assisting them. The bill could also incentivize companies to maintain or bring back call center jobs to the United States.
Companies may face additional compliance burdens related to disclosure requirements and certification. There could be a reduction in the use of overseas call centers for US customer service.
Federal agencies will need to adapt their contracting processes to prioritize US-based call centers.
Potential Benefits
- Increased job retention and creation in the United States related to call center operations.
- Greater transparency for consumers regarding the location of customer service agents.
- Potential improvement in the quality of customer service due to cultural familiarity and language proficiency of US-based agents.
- Reduced reliance on foreign labor for customer service roles, strengthening the domestic economy.
- Incentivizes companies to invest in US-based infrastructure and workforce development.
Most Benefited Areas:
Potential Disadvantages
- Increased operational costs for businesses, potentially leading to higher prices for consumers.
- Reduced competitiveness for companies that rely on lower-cost overseas labor.
- Potential for companies to avoid compliance through loopholes or by shifting business models.
- Possible delays or inefficiencies in customer service due to the limited availability of US-based agents.
- May face challenges in enforcement and oversight by the Department of Labor and the Federal Trade Commission.
Constitutional Alignment
The "Keep Call Centers in America Act of 2025" primarily aligns with the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate commerce with foreign nations and among the several states. By regulating businesses that engage in interstate and international commerce through call centers, the Act falls under this constitutional authority. The Act also touches on the General Welfare Clause (Article I, Section 8) by aiming to promote economic stability and job creation within the United States.
The Act's requirements for disclosure in customer service communications could be analyzed under the First Amendment regarding freedom of speech, but the requirements are likely to be viewed as permissible commercial speech regulations. The Act does not appear to infringe upon any other specific constitutional rights or limitations.
Overall, the Act's focus on regulating commerce and promoting domestic economic interests places it within the established powers of Congress as defined by the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).