The Massachusetts Independent Contractor Law

Determining Whether You Are Correctly Classified as an Independent Contractor Under Massachusetts Law

Employment lawyer for Misclassified Independent Contractors in and around Fall River, Lowell, Worcester, Springfield, Pittsfield and Barnstable

Most individuals in Massachusetts who perform work for an entity are employees, not independent contractors.  In fact, it's very difficult to properly treat someone as an independent contractor under the Massachusetts Independent Contractor Law.  Below is a summary of the three part test Massachusetts employers must satisfy in order to successfully classify someone as an independent contractor.  All three parts of the independent contractor test must be satisfied in order for an individual to be properly classified as an independent contractor.

The Massachusetts 3-part test (“ABC Test”) regarding independent contractors

Prong One:  This prong requires the independent contractor to be free from control and direction in connection with the performance of the service.  An independent contractor, unlike an employee, completes the job using his or her own approach with little direction and dictates the hours that he or she will perform the job.  Translation, the more someone is supervised, the more likely they are to be an employee. 

Prong Two:  This prong of the test requires that the service the independent contractor performs be outside the course of the employer's business.  This part of the test is easily the most difficult for Massachusetts employers to satisfy.  There is not much by way of guidance here, but the Massachusetts Attorney General's office has provided two examples.  A drywall company cannot classify someone as independent contractor who is installing drywall because installing drywall is, obviously, within the scope of the drywall company's business.  However, an accounting firm can classify someone as an independent contractor who moves furniture because the accounting firm, presumably, is not in the furniture moving business.  

Prong Three:  This prong of the test requires employers to establish that the independent contractor is customarily engaged in an established trade, occupation, profession, or business of the same nature as that involved in the service performed.  

Massachusetts employers have to satisfy all three parts of the independent contractor “ABC test” in order to properly classify someone as an independent contractor.  An employer's failure to withhold taxes, provide unemployment / workers' compensation benefits is not considered relevant when determining whether someone is an independent contractor.  Neither is the employer's intent behind the classification or whether they classified the independent contractor in good faith.  

Employers misclassify employees as independent contractors to avoid having to comply with important state and federal employment laws designed to protect individuals. Just because someone calls you an independent contractor doesn’t mean you are one. If you are being misclassified as an independent contractor, you are likely to have claims under the Massachusetts Wage Act for unpaid wages or overtime and may have claims for unlawful retaliation, discrimination, or harassment. If you believe you have been misclassified as an independent contractor schedule a free consultation today.