That comes under the freedom to contract rule* Two or more parties can agree to do whatever as long as whatever they agree on privately is not violating any laws. The problem with the current scheme called sub-contracting I agree is exactly what you have said -- the company wants to be able to control a larger part of the working relationship than is legally acceptable.
The tide is changing though because of a few courageous people who don't just quit and let it go but who tried to change what they feel is wrong. And the change is overwhelmingly in the direction of employee based business models. My point was that this is totally in the hands of these companies and is their choice to either actually have a legal contractual relationship with actual independent contractors who will engage in actual business, or retain control and do that the legal way, which is give them a W2 and call it a day.
Filing an SS8 requires an enormous amount of bravery by a tech who is supporting kids talk less a wife and kids. It is very effective but the consequence of doing so could be that you have to find work with cable if you were doing satellite and vice versa Or you move to a different city where no company knows what you have done Or you stay and stand your ground and challenge the company employing the primes in your market if you are blacklisted for filing the SS8.
Just write a nicely crafted letter to the CEO in New York or wherever the headquarters is. You will be "not blacklisted" real fast. That letter should be prepared before you file the SS8. Make sure you have money saved to live on for weeks or possibly months just in case they dare you to sue.
Its no wonder that only one out of a thousand or so cable/satellite workers have what it takes to change this sub contracting mess! :)
Re: Your complaints are being heard.....
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