New Massachusetts Independent Contractor Rules

October 23rd, 2009 Posted by Cara

 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…)

Employers Face Election Day Penalties

October 30th, 2008 Posted by Derrick

Thirty-one U.S. states have laws requiring employers to give workers time off to vote. The penalties for employers who don’t give workers time off to vote can be severe.

 

In the U.S. territory of Puerto Rico, Election Day is a legal holiday. This includes any day a referendum is held. General elections are legal holidays in the Virgin Islands, and employees who give prior notice must be permitted two hours off, with pay, to vote.

 

Internationally, in many countries, election day (more…)

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