LegisTrack
Back to all bills
S 2495119th CongressIn Committee

Keep Call Centers in America Act of 2025

Introduced: Jul 29, 2025
Sponsor: Sen. Gallego, Ruben [D-AZ] (D-Arizona)
Labor & Employment
Standard Summary
Comprehensive overview in 1-2 paragraphs

Keep Call Centers in America Act of 2025 would, if enacted, require the Secretary of Labor to publicly list employers that relocate call center work or contract such work overseas. Employers on the list would become ineligible for new Federal grants or guaranteed loans for five years, with a process for removal if operations return to the United States under certain conditions. The bill also mandates initial 120-day notice before relocation, creates enforcement penalties, and gives federal contracting preference to U.S.-based employers that avoid relocating work overseas. In addition, the act imposes disclosure requirements in customer service communications (including when AI is used) and empowers the Federal Trade Commission to enforce these disclosures. It also requires reporting on federal call center locations and requires that call center work under federal contracts be performed inside the United States. The effective date is one year after enactment.

Key Points

  • 1Public list and ineligibility for federal funding: Employers that relocate call center work overseas or contract such work overseas must be listed publicly and become ineligible for new Federal grants or guaranteed loans for five years after being listed. Removal from the list can occur if the operation is moved back to the U.S. with sufficient U.S. employment or if a contract is amended to require all such work to be performed in the United States.
  • 2Notice and penalties: Employers must give at least 120 days’ notice to the Secretary before relocating or contracting work overseas. Violating this notice requirement could incur civil penalties up to $10,000 per day.
  • 3Federal contracting preference: When awarding federal contracts, agencies must give preference to U.S. employers that do not appear on the relocation/outsourcing list.
  • 4Disclosures in customer service communications: Businesses must disclose their physical location at the start of each customer service interaction and, if outside the U.S., inform customers they may request to be transferred to a U.S.-located agent. If AI is used, the entity must disclose that nonhuman assistance is being used and offer a transfer to a U.S.-based human agent. Consumers can request transfer to a U.S.-based agent, and companies must annually certify compliance to the FTC.
  • 5FTC enforcement and AI-related reporting: The FTC would enforce the disclosures as unfair or deceptive practices, with penalties under the FTC Act. The bill also requires FTC regulations and a separate annual report to Congress on federal call center locations, the balance of in-house vs. contractor work, and job losses related to AI in federal call center operations. The act includes a 1-year post-enactment runway for these provisions to take effect (with related reporting due within a year).

Impact Areas

Primary affected groups/areas:- Employers operating or planning to operate call centers in the United States (and those considering relocation or outsourcing overseas) that meet the defined size thresholds (50+ employees or 1,500 hours per week collectively).- Federal agencies and contractors that use or award call center work, as they face new disclosure obligations and a preference framework for U.S.-based providers.- Workers in call centers, including potential job protection effects or impacts from relocation decisions, and those involved in customer service roles.Secondary groups/areas affected:- Federal grant-making and loan programs, which would see new ineligibility rules and potential clawbacks or penalties.- The Federal Trade Commission, which would administer new disclosure regulations and enforce compliance.- Consumers who interact with call centers, who gain enhanced transparency about agent location and AI use and a route to be connected to U.S.-based personnel.Additional impacts:- Administrative and compliance burdens on employers (notably around disclosure, certification, and relocation notice).- Possible shifts in Federal procurement practices due to the contracting preference for U.S.-based, non-listed employers.- Potential effects on AI adoption in customer service, given the required transparency and transfer options, and the assessment of AI-related job losses in federal operations.
Generated by gpt-5-nano on Oct 8, 2025