Massachusetts Bill Would Relax Independent Contractor Test

Massachusetts S.B. 886
Status: Committee Hearing Held on July 16, 2013

Under current law, an individual is considered an employee for purposes of chapter 149 (Labor and Industries) and chapter 151 (Minimum Fair Wages), unless all three of the following are met:

  • 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.

This bill would relax the above test by changing the “and” between the second and third factors to “or”, meaning that an individual could qualify as an independent contractor if only one of the second or third factors is met, rather than having to meet both.

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