Massachusetts laws
MGL c. 149, § 24L Massachusetts Noncompetition Agreement Act
Independent contractors under MGL c. 149 § 148B are employees for the purposes of this section.
MGL c. 149, § 148B Classification standard for independent contractors in Mass.
Includes the 3-prong test:
- 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
- the service is performed outside the usual course of the business of the employer; and,
- 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.
Federal regulations
29 CFR § 795, Employee or independent contractor classification under the Fair Labor Standards Act.
Effective March 11, 2024, the U.S. Dept. of Labor’s final rule replaced previous guidance for employee classification under the FLSA.
Selected cases
Camargo's Case, 479 Mass. 492 (2018)
The definition of "employee" in "the independent contractor statute, G. L. c. 149, § 148B, does not displace the definition of 'employee' in G. L. c. 152, § 1, and is not used to determine employment status for workers' compensation claims under G. L. c. 152."
Chambers v. RDI Logistics, 476 Mass. 95 (2016)
"Although the prongs of the independent contractor statute are conjunctive, they operate independently of one another. The statute as severed would provide two independent tests that motor carriers would have to meet in order to establish that their workers are independent contractors."
Massachusetts Delivery Association v. Healey, 117 F.Supp.3d 86 (aff'd 821 F.3d 187) (2015) Affirmed by 821 F.3d 187 (2016)
The second prong of MGL c. 149 § 148B is preempted by the Federal Aviation Administration Authorization Act (FAAAA) when applied to "same-day delivery service using independent contractors…where the service performed by the courier is not outside of the usual course of business of the employer."
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, U.S. Dist. Ct. Mass. (2017)
"[P]rong 3 'seeks to discern whether the worker is wearing the hat of an employee of the employing company, or is wearing the hat of his own independent enterprise.'"
Web sources
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.
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. Department of Revenue.
"This [Technical Information Release] 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."
Frequently asked questions—Final rule: Employee or independent contractor classification under the FLSA, U.S. Department of Labor, Wage and Hour Division.
Information on the final rule on employee or independent contractor classification. Note: "The FLSA does not preempt any other laws that protect workers, so businesses must comply with all federal, state, and local laws that apply and ensure that they are meeting whichever standard provides workers with the greatest protection."
Independent contractors, Mass. Attorney General.
Find out who can be classified as an independent contractor with links to file a complaint (look in the contact information for the complaint).
Independent contractors, Mass Legal Help and Greater Boston Legal Services, February 2024.
"In this article, learn how to tell if you are an independent contractor and what you can do if your employer is misclassifying you."
Internal Revenue Service Revenue Ruling 87-41
Provides guidance in the form of 20 factors that are used to determine whether an employee/employer relationship exists for federal employment tax purposes.
Minimum requirements for working as an independent contractor, Stephen Fishman, Nolo.
Independent contractors and freelancers must comply with several laws. Not specific to Massachusetts.
Self-employed individuals tax center, Internal Revenue Service.
Information on self-employment tax and income tax requirements for individuals classified as independent contractors.
Print sources
Consultant & independent contractor agreements by Stephen Fishman, Nolo, 2020. (2023 eBook available with library card)
Employment status: Employee v. independent contractor, Tax Management, loose-leaf.
Independent contractor v. employee, MCLE, 2011.
Massachusetts wage and hours handbook, 8th ed., MCLE, 2024. Chapter 3, the Massachusetts Independent Contractor law.
Working for yourself: Law & taxes for independent contractors, freelancers & gig workers of all types by Stephen Fishman, Nolo, 2022. (2025 eBook available with library card).
Working with independent contractors by Stephen Fishman, Nolo, 2020. (eBook available with library card)
Contact
Online
| Last updated: | February 21, 2025 |
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