Owner Liability for Misclassification of Employees as Independent Contractors, Again

Last week, an Ohio federal court found that a defunct cable company improperly classified 250 cable installers as independent contractors and that the company owed these individuals $737,133 in back wages for unpaid overtime. The installers were found to be employees, not independent contractors, and thus entitled to overtime pay for weeks in which they worked 40 hours or more. The court also awarded liquidated damages equal to the unpaid wages, bringing the total damages awarded to the installers to $1,474,266. The Department of Labor also indicated that since the company was out of business, it would seek to collect the damages from the individual owner of the company, which is authorized under the Fair Labor Standard Act in certain circumstances.



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