Tag Archive for: independent contractor law

The Massachusetts Independent Contractor Law, also known as Massachusetts General Laws Chapter 149, Section 148B, is a state law that establishes criteria for determining whether a worker in Massachusetts should be classified as an independent contractor or an employee for purposes of wage and hour laws, tax obligations, and other legal rights and protections.

Key features of the Massachusetts Independent Contractor Law include:

1. Three-Prong Test: The law presumes that an individual performing services for another entity is an employee unless all three prongs of the following test are met:
   • The individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact.
   • The service is performed outside the usual course of the business of the employer.
   • The individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.
2. Control and Direction: The first prong of the test examines whether the worker has control and independence in how they perform their work. If the employer exercises significant control over the worker’s tasks, methods, schedule, and other aspects of the work, the worker may be considered an employee rather than an independent contractor.
3. Usual Course of Business: The second prong assesses whether the service provided by the worker is integral to the employer’s primary business activities. If the worker’s services are directly related to the core operations of the employer’s business, they may be classified as an employee.
4. Independently Established Business: The third prong evaluates whether the worker operates as an independent business entity separate from the employer. This may involve factors such as having their own business name, obtaining necessary licenses or permits, maintaining a separate workspace or office, and providing services to multiple clients or customers.
5. Enforcement and Penalties: The Massachusetts Attorney General’s Office is responsible for enforcing the Independent Contractor Law and investigating potential misclassification of workers. Employers found to have misclassified workers as independent contractors when they should be classified as employees may face penalties, fines, back wages, and other legal consequences.
6. Worker Protections: Classifying workers as independent contractors rather than employees may deny them certain legal protections and benefits, such as minimum wage, overtime pay, unemployment insurance, workers’ compensation coverage, and other employment-related rights.