Employers operating in the delivery and livery sectors continue to be targeted with lawsuits alleging violations of the Massachusetts Independent Contractor Statute and Wage Act. Specifically, these lawsuits allege that drivers have been misclassified as independent contractors. Damages in these types of cases can compound quickly and the Wage Act provides for the mandatory recovery of treble damages and attorneys’ fees. As a result, it is imperative that employers classify their workers correctly. The authors of this GT Client Advisory, Greenberg Traurig attorneys David G. Thomas and Jack S. Gearan, discuss the three-prong test used to determine whether an individual is properly classified as an independent contractor and related litigation. The authors suggest that Massachusetts employers consult with counsel when determining how to classify new employees or auditing existing classifications.
