A federal judge in California this month gave preliminary approval to a $1.24 million settlement between home call center company Arise Virtual Solutions and a group of its customer services reps who were assigned to its clients AT&T and Apple. The workers had claimed in the suit that they were intentionally misclassified as independent contractors in order to avoid paying overtime, training, taxes and other expenses. The case was dismissed with prejudice, meaning the result is final, and without Arise admitting guilt in any of the allegations.
Of all the nearly 60 work-at-home call centers I have on this list of virtual call centers, Arise is the call center company that inspires the strongest opinions--both for and against its business model. And its not actually on that list because I don't consider it the same type of operation. Arise works differently than most work-at-home call centers, which may be one of the only things its detractors and defenders agree on.
Although I wouldn't call it a work at home scam, I just don't think it is a very good opportunity. But, not everyone would agree with me. I have had hundreds of comments on these pages of short reviews of Arise. The difference between independent contractors and employees comes up frequently in the comments, and that distinction was integral in the recent decision.
But a difference from other companies I like to point out is the similarly of its contractors and customers. Arise agents are, in a sense, Arise customers too. Agents must pay for training for each client, and even more important, they pay a monthly fee of nearly $40 for use of Arise's infrastructure, which should surely include technical support. And if, indeed, Arise's technical support has as many problems as the reviewers report, then its agents--i.e., its customers--are not getting what they paid for.
But the larger question, to me, is does it make sense to pay in the first place. Being an independent contractor does not mean that you must absorb all business costs.
I am independent contractor--not an employee of About.com. However, About does not charge me a fee to use its infrastructure, and it provides technical support and many other tools to help me be more productive. It makes good business sense for About to help me publish more articles, so About and I can both share in the revenue.
About's model of no fees to its contractors is far more typical than Arise's. Other than paying for a background check (and most companies do not charge for this), I do not recommend any call center company that charges its agents fees.
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I know a little bit about the call center industry and I think this comes down to semantics. Are Arise agents, like you suggest, independent contractors or are they, like Arise calls them, independent business owners? Because as I understand it , Arise encourages agents to create their own business and hire their own call center agents.
I see it as a bit more akin to a franchisee. If I want to open a Subway I have to pay a fee and dues for that opportunity. So if that’s the case am I really a business owner?
Let’s say I want to buy a condo. Am I really a ‘home owner’ if I have to pay fees to the HOA and abide by their rules?
And while you fairly stated that there were hundreds of positive reviews of Arise we both know that more people write to complain about something than to praise something. Bad experiences tend to be driven by emotion while good experiences tend to be motivated by fact. That’s true in most anything.
I don’t have a horse in this race but I do know a bit about the call center industry and independent contractors in general. And I do have to say that your equating being a writer for an online media platform to the work of an independent call center agent is a bit of a disingenuous stretch.
Thanks for you thoughtful comment. And agree that it does come down to semantics. But I think comparing it to a Subway franchise is disingenuous. At a Subway, your customer base is the public. At Arise your customer base is restricted to Arise’s clients. Agents have no ability to increase profits by selling more sandwiches. Their only avenue for profit is through Arise.
Arise is a joke, they waste your time, I would never recommend anyone to join them. Their courses are a month and half long and you have to pay for them???? All the training with no income. Furthermore, if you need to contact support, they’re unskilled, your on hold forever and they can’t resolve your issue. They simply don’t care about your time, as if your a second class citizen. I would highly recommend seeking opportunity other than Arise, to save you the stress, money and hassle with this company.
Arise is not a scam. It is simply a business opportunity and everyone is made aware of that before applying for the opportunity. Working from home takes discipline and dedication. There are many people who do not take working from home serious so they will apply and get a job only to find out later that they are not cut out to work from home. So the company is out of costs for background checks and training.
I have worked for several legitimate at home companies. I have paid for background checks as well. One of the companies I worked for was Af** and my first pay check was not received. The whole class that was in training with me had to wait until the next payday to receive our checks. Is that good business? Are they a scam? There are many IBO’s with Arise who have never had a pay discrepancy. Also, work at home companies similar to the one listed above require you to work a set schedule just like a brick and mortar company so where is the flexibility? The Arise opportunity offers you the convenience and flexibility of choosing the client you want to service, the days you want to work, and the hours you want to work. (continued)
With the Arise model, the costs are the responsibility of the Independent Contractor. This way a person is investing in self and are more likely to show up for work and have a greater interest in becoming successful. Most of the independent businesses offer reimbursement of fees after the contractor starts servicing a client.
If you were a small business allowing others to work under you, you would not want to inquire the costs of individuals who are not serious about working. This is the world we live in. I am an IBO with Arise so I can speak from experience. In the hiring process, I outline the process and ask applicants not to apply until they are ready to start and complete the admissions process and that it should be completed within 3 days. Yet still I receive at least 20 applications a week of individuals who never even start the admissions process. People do not read or listen and that is the risk that is associated with the decision to hire independent contractors who will have the responsibility of costs. There are several small IBO’s who have tried to assist contractors with the cost of training only to have the contractor not show up to work and lose the contract. Unfortunately we small business owners do not have the finances to support individuals who are not going to take the opportunity serious.
In the end, Arise is not right for everyone as in any job or opportunity. But for those who are right for Arise, it is legit and a way to earn income from home. Arise is constantly adding new clients and as someone who has worked for several at home companies, I can tell you that agents who work for Arise service some of the same clients. So that should say a lot about Arise and it legitimacy as a company.
If Arise hires independent contractors only, why does it no longer hire them from California and a couple of other states? http://www.dir.ca.gov/dlse/faq_independentcontractor.htm
Because California defines Arise’s independent contractors as nothing more than an employee with an LLC. If I’m not mistaken, some former Arise independent contractors have sued Arise and won unemployment compensation after being dismissed as if they were employees.
I believe the reason Arise makes people incorporate is to protect Arise from legal liability and nothing more. The State Attorney General’s Offices in every state needs to go after Arise and make them pay people back for the money they’ve shelled out to work as an IC for them. I am glad they have to pay over $1 million dollars and hope other employees in other companies that Arise contracts with follow suit now that the ground has been broken for such a lawsuit against them.