MGL c.149, § 148B Classification standard for independent contractors in Mass. Includes the 3 prong test:
(1) the individual is free from control and direction in connection with the performance of the service, both under his contract for the performance of service and in fact; and
(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.
Internal Revenue Service Revenue Ruling 87-41 Establishes the federal "twenty point test."
Selected case law
Camargo's Case, 479 Mass. 492 (2018)
The definition of "employee" is different in the worker's compensation statute, G. L. c. 152, § 1, than in the independent contractor statute, G. L. c. 149, § 148B. When determining eligibility for worker's compensation, the definition in G. L. c. 152, § 1, and not the definition in G. L. c. 149, § 148B, is used.
Massachusetts Delivery Association v. Healey, 117 F.Supp.3d 86 (aff'd 821 F.3d 187) (2015)
The Federal Aviation Administration Authorization Act ("FAAAA") preempts the second prong of the Mass. Independent Contractor law, which requires that workers perform a service "outside the usual course of the business of the employer" to be classified as independent contractors." Therefore, workers who deliver papers may remain independent contractors.
Somers v. Converged Access, Inc., 454 Mass. 582 (2009)
The measure of damages is not "measured by subtracting the compensation the plaintiff obtained as an independent contractor from the compensation the plaintiff would have received had he been hired as an employee. We conclude that this measure of damages contravenes both the plain meaning and the primary purpose of the independent contractor statute and the wage act. An employee misclassified as an independent contractor, as a matter of law, is an employee; his contract rate is his wage rate; and his "damages incurred" equal the value of wages and benefits he should have received as an employee, but did not."
Schwann et al. vs. Fedex Ground Package System, US Dist. Ct. Mass. (2017) and Remington et al vs. J.B. Hunt, Inc. US Dist. Ct. Mass. (2016).
Discussion of preemption of the first and third prongs of the Mass. independent contractor statute by the FAAAA.
Effect of New Employee Classification Requirements under G.L. c. 149, § 148B on Withholding of Tax on Wages under G.L. c. 62B, TIR 05-11, Mass. Dept. of Revenue
"This TIR summarizes the differences in the general rules for determining employee/independent contractor status under chapters 149 and 62B. Second, this TIR announces that the Commissioner will accept determinations of employee or independent contractor status, as described in this TIR, by the Internal Revenue Service for purposes of identifying income tax withholding obligations under chapter 62B."
Sharing Economy Tax Center, IRS
"If you use one of the many online platforms available to rent a spare bedroom, provide car rides, or to connect and provide a number of other goods or services, you’re involved in what is sometimes called the sharing economy....If you receive income from a sharing economy activity, it’s generally taxable even if you don’t receive a...statement."
Working for Yourself: Law & Taxes for Independent Contractors, Nolo, 2019
Includes information on Insuring your business, self-employment tax, copyrights, client agreements, licenses, permits, and more. Requires library card for access.
Advisory on the Massachusetts Independent Contractor Law, Mass. Attorney General Advisory 2008/1
Covers history of the law, the 3-prong test, what constitutes violation of the law, and enforcement guidelines
Employment Status: Employee v. Independent Contractor, Tax Management, loose-leaf
Independent Contractor v. Employee, MCLE, 2011
|Last updated:||January 10, 2020|