Central KY call center is not closing or laying off staff. Here’s what happened
A Central Kentucky call center will soon be managed by a new company, and is not closing or laying off its employees.
Pearl Interactive Network LLC told the state July 10 it would permanently close its Winchester facility, cease operations and its approximately 342 employees would be terminated later this fall. Pearl was working as a subcontractor for another call center company, Maximus Federal Services Inc.
That company told the Herald-Leader it was not closing the site, only terminating its contract with Pearl.
“Maximus intends to continue operations at this site and Pearl Interactive employees have been given right of first refusal for similar positions under Maximus management, with a deadline to apply of July 24, 2025,” a statement from the company said.
Maximus began operating the call center under a federal contract in September 2022 to accept and respond to calls from 1-800-MEDICARE and inquiries about the wider Health Insurance Marketplace. According to the Centers for Medicare & Medicaid Services, the contract totals $6.6 billion.
The contract, which handles more than 35 million inquiries per year, required Maximus to subcontract 15% of work to small businesses. The newest contract also allows for more remote work opportunities, something that was added after COVID-19 changed workplace culture in 2020.
Maximus still holds the federal contract. Some media reports stated Pearl’s loss of contract renewal was the same as a loss of the federal contract, which is not true.
The projected total number of jobs lost is unknown at this time, but Maximus told the Herald-Leader it intends to keep everyone employed once it finds a new subcontractor to take over managing the site in Central Kentucky.
The notice from Pearl, as is required by the Workers Adjustment and Retraining Notification Act, says it was notified recently its contract to provide services was not renewed and it would stop managing the site on Bypass Road later this fall. The Maximus spokesperson said Pearl issued its WARN notice last week because the company will conclude operating at the Winchester site on Sept. 10.
Because Pearl will no longer manage the site, the employees working there will need to be hired by the new subcontractor.
The notice signed by Pearl CEO Mario Antwine said approximately 342 employees working in Winchester would be impacted if none of them pursued “available opportunities to work for the new employer.”
It also says affected employees are not represented by a labor organization and “will not have a right to avoid separation by bumping or displacing other employees working for Pearl.”
Maximus said the company hopes to retain as many employees as possible.
“Not only will we retain current staff but we will also add additional seasonal staff, as needed, as we ramp up for the upcoming Medicare and Marketplace Open Enrollment seasons,” the Maximus statement said.
Maximus also operates a site in London. It was destroyed in the May 16 tornado and employees have been working remote since then.
In an emailed statement sent to the Herald-Leader, Pearl said its leadership team did not have additional comments to provide beyond details in the WARN notice. The company said its “leadership team’s primary focus remains on supporting our impacted staff to ensure a smooth process for them” and was set to maintain operations through the transition.
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