Employee Misclassification: Just Ask the Cable Guy
Companies that think the Feds’ recent crackdown on employee misclassification doesn’t happen in their back yard would be well advised to know about a recent decision in Dayton, Ohio. In September, a federal judge found that Cascom, a Dayton-area cable installation company, violated federal labor laws by misclassifying its employees as independent contractors. As punishment for that violation, the Department of Labor (DOL) is seeking $1.6 million in back wages and fines.
In finding Cascom liable for misclassification, the judge cited numerous factors establishing that Cascom’s cable installers met the Department of Labor’s definition of an employee. Those factors include Cascom’s requirement that each worker complete an employment application, check in after every job, follow detailed instructions for installation methods and work practices, attend morning meetings, wear shirts with the Cascom label, display Cascom’s logo on their vehicles, purchase their own tools or purchase them from Cascom via payroll deductions, and submit to inventory counts after business hours.