Friday, July 26, 2013

Independent Contractor? or Employee?

Recently, the United States District Court for the District of Massachusetts ruled in Schwann vs. FedEx that a group of former pick-up and delivery drivers were misclassified as independent contractors instead of employees under the Massachusetts Wage Laws.

Under Massachusetts law, an individual is considered an employee, rather than an independent contractor, unless the putative employer proves all of the following: (1) the individual is free from control and direction in connection with the performance of his or her service, both under his or her contract and in fact; (2) the service is performed outside the usual course of the business of the employer; and (3) 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. 

Massachusetts Independent Contractor/Misclassification Law by the  Massachusetts Attorney General [Advisory 2008/1], covers the history of the law, the three-prong test, what constitutes violation of the law, and enforcement guidelines.

Additional information can be found on our page Massachusetts Law About Independent Contractors and Massachusetts Law About Wages.