Attorney General Issues Advisory on the Independent Contractor Law
In 2008, the Massachusetts Attorney General’s Office released guidance on the 2004 update to Massachusetts Independent Contractor Law. The law presumes a worker is an employee. So, it makes employers carry the burden of proof. The advisory explains when a company can treat a worker as a contractor instead.
The 3-Part Test Employers Must Prove
To classify a worker as a real contractor, companies must prove all 3 parts. If they fail even one, the worker counts as an employee:
- The worker must control daily tasks and hours.
- Their work must fall outside the company’s core business.
- They must run their own stable business and serve other clients too.
How Each Prong Works in Active Terms
Prong one asks if the worker truly controls their schedule. Managers must show the worker sets their own hours. They must also prove the company gives minimal daily direction. This means workers can choose their own approach to tasks. The court rejects contractor status when companies only write policies but still control hours in practice.
Next, prong two tests if the work is part of the company’s main service. If it is essential to daily operations, it counts as inside company business. For example, delivery firms can’t claim drivers work outside the business when the company depends on those drivers to function. By contrast, one-off side services may qualify as outside labor.
Finally, prong three checks if the worker can serve more than one client. The company must show the worker offers services broadly. This also means the worker operates a separate trade line. If a company holds exclusive control, it signals employee-level oversight.
What the Advisory Removes From the Analysis
The advisory also tells courts to ignore three common company tactics. These tactics don’t prove a worker is a contractor:
- Not withholding payroll taxes
- Not paying unemployment contributions
- Not providing workers’ compensation
Even when companies skip these steps, courts won’t treat it as contractor proof. Instead, they look at operational control, task type, and business reliance.
What Workers Can Recover If Misclassified
The update also means workers can recover more than just base lost wages. They can claim:
✅ Unpaid hourly wages
✅ Missed overtime premiums
✅ Benefits other employees get
✅ Business costs the firm must carry
✅ Triple (treble) damage compensation tied to unpaid wage sums
Essentially, courts now give workers stronger recovery leverage and remove unclear intent burdens.
When Workers Should Take Action
If your company sets your shifts, reviews your performance, or depends on your labor to run its core services, your role likely meets employee classification. Similarly, if you worked overtime without time-and-a-half premiums, you deserve pay recovery.
Why This Matters for Weekly Family Stability
Worker classification impacts household budgets first. When companies block hourly or overtime pay, families lose schedule safety. This affects rent timing, meals, medicine payments, and school plans. So, fair classification preserves weekly predictability.
