On March 7th, the Boston Globe published an article on a class-action lawsuit being brought against the City of Boston and Boston Taxi fleet owners by two cab drivers. The plaintiffs believe they are being wrongly classified as independent contractors instead of employees and therefore failing to pay minimum wages and overtime, and forcing them to cover expenses associated with their jobs. MBBP employment attorney Bob Shea was quoted in the article discussing the Massachusetts Independent Contractor Law and what this lawsuit means for businesses:
Fines for noncompliance by companies are steep, ranging from $10,000 to $25,000 for first offenders. The bigger risks are private lawsuits, where plaintiffs can recover triple damages and attorney’s fees. The greatest concern for businesses using large numbers of independent contractors is a private lawsuit brought as a class action. Such a lawsuit can put a company out of business.
To read the full article, please visit the Boston Globe.
For questions on the Massachusetts Independent Contractor Law, please contact Bob Shea.