Cable Company Guilty of Misclassifying Workers as Contractors

Cohen: Federal Case a Victory against Industry that Exploits Subcontracting

In a case that should chill employers who cheat workers out of overtime and other rights and protections on the job, a federal judge has ruled that an Ohio company broke federal labor law by misclassifying 250 cable installers as "independent contractors" instead of full-time employees.

U.S. District Court Judge Thomas M. Rose found ample evidence that the workers are employees, meaning they are entitled to overtime pay. The U.S. Department of Labor, which brought the case, is seeking $800,000 in back pay and an equal amount in damages. A hearing on damages is set for Nov. 22.

The workers' employer is Cascom Inc., which contracts with Time Warner in the Dayton, Ohio, area to install cable TV, Internet and phone services.

CWA President Larry Cohen said the court decision is a victory against the "massive issue of job misclassification in the United States, particularly in the cable industry. Misclassifying workers has made cable organizing harder because of the threat or the actual use of subcontractors."

Dave Bahus, president of a Pittsburgh-area unit of Comcast technicians represented by CWA Local 13000, says companies that depend heavily on contractors are also cheating their customers.

As a quality control technician, Bahus said he spends every day returning to homes where contractors have failed to fix problems. One issue is training; another is the fact that they're paid per job instead of hourly wages with overtime, which encourages contractors to move quickly from job to job.

"Our subscribers are paying for quality service. They should expect nothing less," Bahus said. "Subscribers should have the right to have a trained, experienced union technician to deliver the services they deserve. Too many times the contractors here represent themselves as Comcast technicians and our customers are sadly disappointed. It's only after several service calls before they receive a union Comcast technician that their problem is resolved."

Labor Secretary Hilda Solis called misclassification an "alarming trend" and said the DOL is taking steps beyond the court case to end the practice. A new agreement between the Labor Department and IRS, for instance, will allow the agencies to share more information to ensure that employers are complying with the law and catch those who aren't.