A reminder to employers that classifying workers as independent contractors is only appropriate when legal standards are met and cannot be done simply for sake of convenience or because that classification is requested by the worker.
The Massachusetts Attorney General announced last week that it would be assessing $1.46 million in citations against a franchisor with 20 locations in Massachusetts and the staffing agency that provided purported independent contractors to the franchisor. In this case, the franchisor used staffing agencies to hire workers treated as independent contractors into traditional employee roles, such as manager, leader, and baker. By improperly classifying these individuals as independent contractors, the AG determined that these individuals were denied various employment protections under Massachusetts law, including timely payment of wages.
This case serves as a reminder that the consequences for misclassifying workers as independent contractors can be costly. While timely payment of wages and failure to provide certain notices to temporary employees were at issue here, it is also important to remember other employee protections one may be withholding when classifying someone who should be an employee as an independent contractor.
These protections may include, but are not limited to, minimum wage, overtime, state/local sick time, and various insurance benefits such as workers’ compensation. The failure to provide such legally required protections and benefits can result in monetary liability.
You can read the full press release here: AG Campbell Secures $1.46 Million In Citations from Boston-Area Dunkin’ Franchise Operator And Two Staffing Agencies For Wage Theft And Fair Labor Violations | Mass.gov