Massachusetts Injury Lawyers Blog
Properly classifying workers is one of the most important responsibilities an employer has under Massachusetts law. When an employer improperly labels an employee as an independent contractor, the consequences can extend far beyond payroll practices. Misclassified workers may be deprived of important legal protections, including workers’ compensation coverage, wage protections, and other statutory benefits. A recent decision from a Massachusetts court reinforces that employers cannot avoid their legal obligations by using contractual labels or shifting business expenses onto workers. If you believe you have been misclassified or required to pay expenses that should have been borne by your employer, an experienced Massachusetts workers’ compensation attorney can help you understand your rights and pursue the remedies available under the law.
History of the Case
Reportedly, the plaintiffs entered into agreements with a company to provide commercial janitorial services for the company’s customers. Although the agreements characterized the workers as franchisees or independent contractors, a federal court determined that the Massachusetts workers involved had been misclassified and were actually employees under the Commonwealth’s independent contractor statute. The case then focused on the damages available to one of the workers as a result of that misclassification.
Allegedly, the company required the worker to pay a variety of fees and expenses, including charges associated with workers’ compensation and other insurance coverage. The company also operated a payment system under which workers received compensation only after customers paid their invoices, and if customers failed to pay within a specified period, the company recaptured amounts previously advanced to the worker through chargebacks. The federal court certified several questions to the Massachusetts Supreme Judicial Court concerning whether these practices complied with the Massachusetts Wage Act.
Classification of Workers
The Supreme Judicial Court answered the certified questions by emphasizing the strong public policy underlying the Massachusetts Wage Act. The court explained that employees earn their wages when they perform the work required of them, not when the employer receives payment from its customers. Consequently, an employer cannot delay payment simply because a customer has not yet paid its invoice. Likewise, an employer may not characterize earned wages as advances and later recover those wages through chargebacks when customer accounts become delinquent. Such arrangements improperly withhold or recapture earned wages in violation of Massachusetts law.
The court also addressed whether an employer could require employees to bear the cost of workers’ compensation insurance or similar coverage through contractual agreements. It concluded that Massachusetts law places the responsibility for providing workers’ compensation coverage squarely on the employer. Allowing employers to shift those statutory obligations to employees through deductions or contractual provisions would undermine the protections the Legislature intended to provide. Accordingly, the court held that workers who were improperly required to pay expenses that the employer was legally obligated to bear could seek to recover those amounts as damages under the Massachusetts Wage Act.
Talk to an Assertive Massachusetts Workers’ Compensation Attorney
Worker misclassification can affect far more than your paycheck. It may impact your eligibility for workers’ compensation benefits, expose you to expenses your employer should have paid, and deprive you of important workplace protections. If you believe you have been improperly classified as an independent contractor or required to pay costs that should have been your employer’s responsibility, you should talk to an attorney about your legal options. James K. Meehan of the Law Office of James K. Meehan is an assertive Massachusetts workers’ compensation attorney who can help you protect your rights and pursue the compensation and benefits you are entitled to under Massachusetts law. Call the Law Office of James K. Meehan at 508-822-6600 or complete the firm’s online contact form to schedule a consultation.