labor lawAdivision of labor law center

 Massachusetts recently increased the penalties for employers who misclassify employees as independent contractors.

Many states are imposing stricter penalties for employers who illegally avoid paying unemployment insurance and workers’ comp by misclassifying workers as independent contractors.

In Somers v. Converged Access, the Massachusetts Supreme Judicial Court ruled that the independent contractor law is a strict liability  statute. This means that the employer’s intent in misclassifying a worker is irrelevant. Therefore, the worker was entitled to compensation for wages, overtime and benefits that he would have received, if he had been correctly classified as an employee. In addition, the employee was permitted to keep the $65 per hour that the company paid him as an independent contractor – an amount far in excess of an employee’s wage in the same job.

The Massachusetts company was required to pay the employee for benefits including vacation and holiday pay. In addition, the company was ordered to pay the employee overtime at a rate of $97.50 per hour – 1.5 times the worker’s $65-per-hour wage.  

The Massachusetts definition of independent contractor is even more strict than federal independent contractor regulations. A worker is an employee unless he or she is: (more…)

Minimum wage changes in 2009 will require every employer in the nation to update his or her labor law posters.

On January 1, 2009 eleven states will increase the minimum wage. The majority of these states implement annual cost-of-living increases in the state minimum wage.

The biggest minimum wage increase in the nation this January is $1.00 per hour, in New Mexico. This changes the New Mexico minimum wage from $6.50 to $7.50 per hour. This is a statutory change, not a cost of living change.

The Washington state minimum wage remains the highest in 2009, increasing by 48 cents from $8.07 to $8.55 per hour. The Oregon minimum wage is second, increasing by 45 cents from $7.95 to $8.40 per hour. Third place goes to Vermont, where the minimum wage increases by 38 cents from $7.68 to $8.06 per hour.

There is a 3-way tie for fourth place, between Massachusetts, Connecticut and California. That’s due to a 35 cent increase raising the Connecticut minimum wage from $7.65 to $8.00 per hour.

Massachusetts and California have minimum wages of $8.00 per hour that do not increase in 2009. It’s worth noting that when the Massachusetts and California (more…)