Call centers are the backbone of customer service for many industries, from healthcare and banking to retail and government services. Recently, a bipartisan bill was introduced in the U.S. Senate called the Keep Call Centers in America Act of 2025 (S.2495). This bill is designed to curb the offshoring of call center jobs, increase transparency for consumers, and tie federal support to companies that keep these jobs in the U.S. Let’s break down what this bill means for call centers, businesses, and consumers.

Key Provisions of the Bill 

Definitions & Coverage

  • Who does this apply to?
    Any employer operating a call center in the U.S. with 50 or more employees, or whose total workforce logs 1,500+ labor hours per week. This includes:

    • In-house customer service teams
    • Third-party call center vendors working on behalf of U.S. companies
  • What is considered “relocation”?
    If a company moves 30% or more of its call center operations offshore, that’s considered a “relocation” under the Act. This can include:

    • Shifting departments (e.g., billing or tech support) to another country
    • Downsizing U.S. centers while expanding overseas ones
  • Why is 30% the threshold?
    It’s meant to capture significant offshoring, not small pilot programs or temporary outsourcing. If you hit 30%, you trigger compliance reporting and restrictions.

Notice & Public Registry

  • 120-Day Advance Notice Required
    Companies planning to offshore or relocate call center operations must notify the U.S. Department of Labor (DOL) 120 days in advance. This gives regulators and stakeholders time to prepare, respond, or intervene if needed.
  • Public Call-Out List
    The DOL will maintain a public registry listing all companies that have offshored call center work. This list will be:

    • Publicly accessible online
    • Used by other federal agencies to determine eligibility for support
    • A potential reputational risk for consumer-facing brands
  • Penalties for Non-Compliance
    If a company fails to properly notify the DOL, it may face civil penalties of up to $10,000 per day. That adds up quickly.

Federal Support Restrictions

  • 5-Year Ban on New Federal Grants/Loans
    Companies on the public list will be ineligible for new federal grants or federally guaranteed loans for up to five years. This can impact:

    • SBA loans
    • Industry-specific federal funding (e.g., for healthcare, broadband, or defense)
  • Federal Contracting Preference for U.S.-Based Call Centers
    Agencies awarding federal contracts will give preference to companies that keep customer service operations within the U.S.
  • Mandatory Domestic Call Center Work for Federal Contracts
    If you’re working on behalf of the federal government, the call center work must be done domestically; no offshore outsourcing is allowed under those contracts.

Consumer & AI Transparency

At the beginning of every customer service interaction, companies must clearly inform the customer:

  • Where the agent is located
    Example: “You are speaking with an agent based in Manila, Philippines”, or “This call is being handled from Omaha, Nebraska.”
  • If Artificial Intelligence (AI) is in use
    Example: “This is an AI-powered virtual assistant,” or “You are currently chatting with an automated system.”
  • Offer a human transfer
    If a customer requests, the company must transfer them to a U.S.-based human agent, not just any agent, but one located in the United States.

Enforcement

The Federal Trade Commission (FTC) is responsible for:

  • Creating formal rules around these disclosures
  • Investigating complaints
  • Enforcing penalties for non-compliance

This provision aims to promote transparency, consumer choice, and informed consent, especially as AI becomes more common in customer service.

Reporting & Oversight

  • Department of Labor (DOL) Reporting
    The DOL will be required to track and publish reports on:

    • The number of U.S. call center jobs affected by offshoring
    • The overall volume of call center employment under federal contracts
    • How AI adoption is influencing job loss or job changes in the industry
  • Annual Compliance Certification
    Businesses may be required to certify their compliance each year to the FTC. This could involve:

    • Submitting records of where call center work is performed
    • Disclosing AI usage policies
    • Confirming consumer disclosure practices

Why It Matters for Call Centers

This Act could significantly impact businesses that rely on offshore labor for cost savings. U.S. companies have traditionally outsourced call center operations to countries with lower labor costs to remain competitive and offer affordable pricing to consumers. Bringing these operations back onshore, or limiting the ability to offshore, could substantially raise labor expenses.

For some businesses, especially small to mid-sized enterprises operating on tight margins, absorbing the cost of U.S.-based labor may not be feasible without raising prices, reducing services, or restructuring operations. In extreme cases, companies that depend heavily on outsourced support may find themselves at risk of downsizing or closure.

Additionally, vendors and third-party providers will need to closely review existing contracts, workforce distribution, and compliance practices to avoid triggering costly penalties or losing access to federal funding.

Best Practices for Staying Compliant

  • Audit operations: Understand where your call center work is performed and if it crosses the 30% threshold.
  • Update contracts: Include compliance clauses with third-party vendors.
  • Build disclosure processes: Train staff and implement technology to meet location and AI transparency requirements.
  • Monitor legislation: The bill may change during the legislative process, so stay updated.

Key Impacts 

Increased Operational Costs

  • Labor cost surge: U.S. customer service reps can cost 2x to 4x more than offshore agents (e.g., Philippines, India).
  • Companies may have to raise product or service prices to offset those costs.
  • Small businesses and startups could face cash flow strain or be priced out of maintaining call center support at all.

Potential Decline in Service Levels (Short-Term)

  • Companies forced to move operations quickly may face hiring delays, training lags, and short-term quality issues during the transition.
  • Volume capacity may drop if fewer agents are available to handle the same workload, leading to:
    • Longer wait times
    • Reduced service hours
    • Limited multilingual support

Acceleration of AI Adoption

  • Companies will likely invest more heavily in AI-powered chatbots, voice assistants, and IVR systems to reduce dependence on human agents.
  • AI offers cost savings and 24/7 availability, but:
    • May frustrate customers if not well-executed
    • Could reduce personalization or empathy in service
  • Human-agent support may become premium or “on request” as automation handles the front line.

Compliance Burden

  • Businesses will need to implement new disclosure protocols and track compliance with relocation thresholds and consumer notifications (location, AI use).
  • Legal and compliance costs may rise (e.g., audits, reporting, contracts with vendors).

Conclusion 

The Keep Call Centers in America Act of 2025 aims to protect U.S. jobs, ensure consumer transparency, and hold companies accountable when they move work offshore. However, the operational and financial impacts for businesses could be significant.

By requiring companies to keep more customer service roles on U.S. soil, the Act is likely to drive up labor costs—particularly for companies that have long relied on offshore teams to maintain cost-effective operations. These increased expenses may be passed on to consumers through higher pricing or lead to cost-cutting measures elsewhere in the business.

In the short term, companies may experience service disruptions as they rehire and retrain domestic agents, potentially resulting in longer wait times and reduced service availability. Smaller businesses may struggle to maintain current service levels at all.

To offset rising costs, many organizations will likely accelerate their adoption of AI technologies. Automated chatbots, voice systems, and virtual agents may handle a growing share of front-line inquiries. While this shift can improve efficiency and reduce costs, it also risks diminishing the quality of customer interactions if not managed carefully.

By acting early—auditing operations, retraining teams, and investing in smart automation—call centers can position themselves to adapt effectively if the bill becomes law.

Schedule a Demo

Disclaimer: The information provided in this blog is for informational purposes only and does not constitute legal advice. Compliance regulations frequently change, and businesses should consult a qualified attorney or compliance expert before making regulatory decisions. CallShaper provides technology solutions to enhance contact center efficiency and compliance, but does not offer legal services.

AI Disclosure: This article was generated with the assistance of AI and reviewed by industry professionals to ensure accuracy and compliance.