Massachusetts Employers May Be Liable to Out-of-State Employees Misclassified as Independent Contractors

Massachusetts employers have long labored under the strictures of the Massachusetts independent contractor statute, General Laws c. 149, §148B, which makes it exceptionally difficult to engage workers in Massachusetts as independent contractors rather than employees. A misclassification, coupled with a failure to pay overtime, can result in liability for treble damages plus attorneys’ fees. But can employers also be held liable under Massachusetts law even when the misclassified employees do not live or work in the state? Yes, they can, says a recent opinion from the Massachusetts Supreme Judicial Court.

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