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Scott Connolly Comments on the Importance of Properly Classifying Workers in Accounting Today 08/03/2017

Posted by Morse Barnes-Brown Pendleton in Attorney News, Employment.
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M0846523In Accounting Today’s article “Properly Classifying Workers Remains a Major Problem“, employment attorney Scott Connolly comments on how worker misclassification is a prevalent issues for both the Internal Revenue Service and state taxing officials. Companies that misclassify employees as independent contractors avoid paying numerous payments under the Federal Family and Medical Leave Act, which can lead to trouble with the IRS or with the misclassified employee.

For more information, visit our Massachusetts Employment Law Blog.

Legislation Proposed to Address “Problems” Caused by the Massachusetts Independent Contractor Law 08/31/2011

Posted by Morse Barnes-Brown Pendleton in Employment, Legal Developments.
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Employment Attorney Bob SheaBy: Bob Shea

Amendments made in 2004 to the Massachusetts Independent Contractor Law, M.G.L. c. 149, §148B (“MICL”), caused significant problems for many businesses that use independent contractors.  See “The Massachusetts Independent Contractor Law” and “Supreme Judicial Court Decision Heightens Concern for Businesses Using Independent Contractors“. MICL currently provides that an individual performing any service to an employer must be considered to be an employee for purposes of Massachusetts wage laws unless: (1) the individual is free from control and direction in connection with the performance of the service, 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. This strict three-part test is impossible to meet for many businesses because the independent contractors they use (or formerly used) perform services within “the usual course of the business of the employer.”

A bill introduced in the Massachusetts House of Representatives, House No.1412, named “An Act Relative to Independent Contractors,” would make MICL much more business-friendly by replacing the “and” preceding the third part of the test and replacing it with an “or.” If passed, businesses would have to demonstrate that the individual performing services is “free from control and direction in connection with those services” and either that “the service is performed outside the usual course of the business of the employer” or “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.” The bill is tentatively scheduled for hearing on October 27, 2011 before the Joint Committee on Labor and Workforce Development. MBBP will monitor the bill’s progress.

For more information on this legislation, please contact Bob Shea.

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