Finance News & Insights

Misclassification errors could cost cable company $1.6M

Here’s yet another example of just how serious the feds are about taking action against companies it believes incorrectly classified full-time employees as independent contractors (ICs).

Here’s the background: According to a lawsuit filed by the Department of Labor, cable provider Cascom, Inc., allegedly misclassified its 250 cable installers as ICs – and failed to pay them the overtime they were owed under the Fair Labor Standards Act (FLSA).

When it went to court, a district judge ruled the company did misclassify the cable installers and violated the FLSA. Total back wages and damages have yet to be determined, but the DOL is seeking more than $1.6 million overall.


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