FAQ

  • Employment Law

    • How Do I Know if I Am an Employee or an Independent Contractor?

      Job titles are often misleading. It is important to look at the work being performed. Some companies (intentionally or unintentionally) misclassify workers as independent contractors when in reality these workers are employees of the company. As a result, these workers are not entitled to the same benefits as employees and have to pay the ‘self-employment tax’ of 7.65 percent because the company is not making contributions, (i.e., FICA, FUDA). While the federal law uses a test called the ’20 factor test’, Massachusetts uses a much more stringent test that is set forth in the statute. Massachusetts companies should be cautious about identifying workers as independent contractors who have an ongoing relationship with the company.

    • Are Non-Compete Agreements Enforceable in Massachusetts?

      A Massachusetts court will enforce a non-compete agreement only if it is necessary to protect trade secrets or goodwill. The agreement must also be reasonable in scope (i.e., time and geography) and if it furthers the public interest. Massachusetts companies cannot use these agreements to restrict general competition. Employees have numerous defenses to assert which can invalidate the non-compete obligations. These defenses are particular to each situation, so employees are advised to consult with an attorney prior to signing a non-compete or non-solicitation agreement and prior to taking steps that might violate one that is already in place

    • If There Is a Progressive Discipline Policy in My Handbook, Does the Company Have to Comply With It?

      Probably not. Most employee handbooks explicitly and clearly communicate that the handbook does not grant any contractual rights or protections to the employees. In fact, the handbook probably starts off with a disclaimer that explains that employees are ‘at will’ employees, which means that they can be fired with or without cause or notice. Some companies that use outdated or poorly drafted handbooks sometimes unintentionally open the door to claims. Business owners take note – it is better to have no handbook than a poorly drafted handbook.