Jacobson v. Comcast Corp.

740 F. Supp. 2d 683, 16 Wage & Hour Cas.2d (BNA) 1380, 2010 U.S. Dist. LEXIS 102834, 2010 WL 3769120
CourtDistrict Court, D. Maryland
DecidedSeptember 28, 2010
Docket1:09-cr-00562
StatusPublished
Cited by27 cases

This text of 740 F. Supp. 2d 683 (Jacobson v. Comcast Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacobson v. Comcast Corp., 740 F. Supp. 2d 683, 16 Wage & Hour Cas.2d (BNA) 1380, 2010 U.S. Dist. LEXIS 102834, 2010 WL 3769120 (D. Md. 2010).

Opinion

OPINION

J. FREDERICK MOTZ, District Judge.

Plaintiffs, a group of cable technicians, have brought suit seeking overtime wage payments under the Fair Labor Standard Act (“FLSA”), 29 U.S.C. § 201, et seq., against Comcast, and companies that con *686 tracted with Comcast to install cable services for Comcast customers (Futuretek, Procom, and Conn-X) (collectively “Installation Companies”). There is no dispute that the Installation Companies employ Plaintiffs. Plaintiffs contend further that Comcast is their joint employer within the meaning of the FLSA.

Comcast has filed a motion for summary judgment. Broadly stated, the issue presented is whether a company (or other private venture) may, consistently with the remedial goals of the FLSA, contract with third parties who employ workers vital to the accomplishment of the company’s business purposes in a manner providing the company with strict quality control over the performance of those workers without becoming liable for wages due the workers under the FLSA. Reasonable people may disagree about the answer to this question. My view is that the answer is “yes,” provided that the fees paid by the company to the direct employers of the workers are sufficient to pay the workers the wages they are due. Here, Plaintiffs have not alleged that the fees paid by Comcast to the Installation Companies were not sufficient to cover the FLSA wages plaintiffs claim. Therefore, I will grant Comcast’s motion for summary judgment.

I. 1

Comcast sells its services on a subscription basis, necessitating the installation of equipment in a customer’s home to establish a connection with the Comcast network. (Pl.’s Mem. at 2; App. A, Comcast 10052791.) To provide these installation services, Comcast contracts with Installation Companies which, in turn, hire technicians to perform installations. (Id.) The terms of the contracts between Comcast and the Installation Companies expressly provide that the technicians are independent contractors of Comcast. (Def.’s Mem. at 7; Ex. D-l, Conn-X Agreement at ¶ 15(a); Ex. D-2, Procom Agreement at ¶ 1(e).)

The Installation Companies and Com-cast have a close business relationship. Procom was founded by a former Comcast Senior Vice President with a $500,000 advance from Comcast. (Pl.’s Mem. at 41; Ex. 4, Donahue Dep. at 180.) The Installation Companies perform all, or the vast majority of their work for Comcast. (PL’s Mem. at 3; Ex. 1, Schreyer Deck at ¶ 8.) All technicians are issued identification numbers by Comcast. (Id. at 4; Ex. 2, Selvyn Dep. at Ex. 2 thereto.) Comcast refers to its Installation Companies as “business partners.” (Id. at 4; Ex. 2, Selvyn Dep. at 235-37.) All the equipment installed in customers’ homes belongs to Comcast. However, the Installation Companies and the technicians own the necessary tools and equipment.

Plaintiffs contend that Comcast has the authority to prohibit the hiring of a prospective technician in its “sole and absolute discretion.” (Id. at 14; Ex. 1, Schreyer Deck at ¶ 19.) Andre Selvyn, Comcast’s Manager of Business Partner Operations, sent an email in March 2009 to an Installation Company, informing them that “effectively [sic] immediately, all new hires from your firms who will be representing Com-cast must be approved by me. Please be sure to contact me before bringing on any new techs.” (Id. at 14; Ex. 4, Donahue Dep. at Ex. 16 thereto.) Short of absolute authority over hiring, Comcast also requires all prospective technicians to pass a *687 criminal background check and drug screening test before working on behalf of Comcast. (Id. at 18; Ex. 1, Schreyer Decl. at ¶ 21).

The Plaintiffs assert that Comcast exercises direct and indirect control over cable technicians once they are hired. Comcast requires Installation Companies to hire technicians as W2 employees, rather than 1099 independent contractors. (Id. at 5; Ex. 2, Selvyn Dep. at Ex. 2 thereto.) The contracts between Comcast and the Installation Companies specify the nature of the services they are to provide, and establish policies and procedures to which technicians must adhere. (Id. at 15; Ex. 5, Conn-X agreement.) Technicians are issued Comcast ID badges. (Id. at 15; Ex. 2, Selvyn Dep. at 168.) By forwarding batches of service calls to the Installation Companies, Comcast directs technicians to specific work sites and details the time-frame in which jobs must be completed. (Id. at 23-24; Ex. 2, Selvyn Dep. at 88.) At times, Comcast contacts technicians directly to point them to particular jobs. (Id. at 27; Ex. 17 Waters Dep. at 62; Ex. 21, J. Jacobson Dep. at 66.)

Comcast also maintains strict supervision over the Installation Companies and the technicians. (Id. at 5; Ex. 1, Schreyer Decl. at ¶ 14.). Comcast utilizes a program called “Cable Data” which permits it to exercise real time monitoring of a technician’s work. (Id. at 7; Ex. 2, Selvyn Dep. at 108-23.) For example, Selvyn informed Installers via email:

I just ran a quick summary and below are the top 20 techs with craftsmanship issues last week.. As discussed previously, the goal for this month is 14% SCOI; 2 at the end of the month, we’ll take a hard look at any tech above that threshold and decide whether or not their performance warrants continued representation of Comcast.

(Id. at 20; Ex. 5, Crouse Dep. at Ex. 11 thereto.) Comcast is able to monitor individual technicians to determine where they are, how long they are on site, and what equipment is being utilized. (Id. at 21; Ex. 21, J. Jacobson Dep. at 72.) Comcast retains records of technicians’ arrival and departure times (Id. at 35; Ex. 4, Donahue Dep. at 190-91).

Comcast also has the authority to “deauthorize” a specific technician, which Plaintiffs contend amounts to the practical ability to fire. Deauthorization strips technicians of their status as an “authorized contractor,” thereby prohibiting them from performing any work on behalf of Comcast. (Id. at 16; Ex. 14, Sadik Dep. at 13.) While Comcast notes that a deauthorized technician is not prohibited from continuing to work for an Installation Company in a position unassociated with Comcast, Plaintiffs contend that because the Installers only perform work for Com-cast, deauthorization is tantamount to termination. (Id. at 16; Ex. 1, Schreyer Decl. at ¶ 9; Ex. 3, S. Jacobson Dep. at 143.)

Comcast does not pay technicians directly, but instead pays the Installation Companies for each service completed by their technicians. (Id. at 32; Ex. A.) The Installation Companies are then free to pay their technicians in whatever manner they see fit. (Id. at 32; Ex. 2, Selvyn Dep.

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Bluebook (online)
740 F. Supp. 2d 683, 16 Wage & Hour Cas.2d (BNA) 1380, 2010 U.S. Dist. LEXIS 102834, 2010 WL 3769120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobson-v-comcast-corp-mdd-2010.