With roughly three million Americans employed in call centers, the industry faces increasing pressure from offshoring and AI automation. According to the Bureau of Labor Statistics, up to 150,000 U.S. call center jobs could vanish by 2033 if current trends continueWVDN+10Senator Ruben Gallego+10Complete AI Training+10. Moreover, a Data for Progress survey shows 70% of Americans say automated phone systems are more frustrating than talking to a live representativeCX Today+3Senator Ruben Gallego+3TCPAWorld+3.

In response, Senators Ruben Gallego (D‑AZ) and Jim Justice (R‑WV) introduced bipartisan legislation to legislate transparency, retain domestic jobs, and protect consumer service quality and data privacy Ohio House of Representatives+11Senator Ruben Gallego+11National Law Review+11.

Key Provisions of the Bill

Here’s what the Act specifically proposes:

1. Offshoring Notification & Public Disclosure

Companies must notify the Department of Labor (DOL) at least 120 days in advance before relocating call center operations overseasNational Law Review+10Senator Ruben Gallego+10Complete AI Training+10.
The DOL will publish a public list of firms that have offshored customer support, lasting five years unless jobs are brought back to the U.S. or contract terms are amendedKAWC+11Senator Ruben Gallego+11Complete AI Training+11.

2. Federal Funding Penalties & Contract Preferences

Firms on that list become ineligible for new federal grants or guaranteed loans; existing awards face monthly penalties, and cancellation if still listed after one yearCongress.gov+9Senator Ruben Gallego+9TCPAWorld+9.
Federal agencies must prioritize contracting with companies that keep call centers in the U.S., and any federally contracted call center work must be done onshoreOhio House of Representatives+9KAWC+9Senator Ruben Gallego+9.

3. Consumer Rights & Transparency

Customer service agents must disclose their physical location and whether AI is involved when interacting with callersTCPAWorld+12CBS News+12Complete AI Training+12.
If a caller requests it, the interaction must be transferred to a U.S.-based human agentCWA Union+8CBS News+8Complete AI Training+8.
Annual certification of compliance would go to the Federal Trade Commission, with violations treated under the FTC ActTCPAWorld+1.

4. AI & Job Loss Reporting

The DOL is tasked to issue reports on the extent and location of federal call center work, and track job displacement tied to AI usageCongress.gov+13Senator Ruben Gallego+13WVDN+13.

5. Applicability Threshold

These rules apply to businesses with 50 or more full-time employees, or those whose staff collectively work 1,500+ hours per weekCX Today+3Senator Ruben Gallego+3National Law Review+3.

Support & Critiques

The Communications Workers of America (CWA) supports the bill, calling it “much-needed” to protect jobs and prevent service degradation caused by outsourcing and AI displacementKAWC+8Senator Ruben Gallego+8Complete AI Training+8.
Critics, especially some call center workers, worry about the burdens of disclosure and loss of privacy. As one Reddit commenter noted:

“I’m worried that this gives callers way too much power … They’ll be allowed to demand to know where we are”Reddit.

Others foresee a shift toward AI-replacing roles completely, arguing automation may ultimately benefit workers by removing repetitive jobs.

What Happens Next

The bill is in early legislative stages, with its progress depending on committee hearings and support on the Senate floorTCPAWorld.
If passed, its provisions would likely take effect one year after enactment, allowing businesses time to adjustTCPAWorld+1.
Companies should monitor how this intersects with AI regulation, telemarketing law (e.g., TCPA), and broader consumer protection frameworksComplete AI Training+5National Law Review+5TCPAWorld+5.

Final Thoughts

The Keep Call Centers in America Act is a clear response to public dissatisfaction with automated customer support and concerns about outsourcing and AI-driven job loss. It attempts to strike a balance: safeguarding consumer transparency and American jobs, while permitting AI and innovation—so long as end-users know whether they’re interacting with bots or agents and get a human fallback option.

If you're working in policy, human resources, or customer operations, now's a good time to evaluate internal practices—not just for compliance, but to align with broader shifts in how service quality and labor transparency intersect with AI adoption and globalization.