The Massachusetts Supreme Judicial Court recently held that the
Massachusetts Independent Contractor Law may apply to
individuals who perform services outside of Massachusetts for a
Massachusetts company. The decision,
Taylor v. Eastern Connection Operating, Inc.,
significantly expands the potential reach of Massachusetts wage and
hour laws.
The plaintiffs in Taylor were New York residents. They
worked as couriers in New York for a company headquartered in
Massachusetts. The plaintiffs performed their services exclusively
in New York. The independent contractor agreements they entered
into with the company, however, provided that the agreement
“and all rights and obligations of the parties shall be
construed in accordance with the laws where” the company was
headquartered, i.e., Massachusetts.
The plaintiffs filed a putative class action, claiming that they
had been misclassified as independent contractors under
Massachusetts law. The company then moved to dismiss. The trial
court granted the motion, concluding that the Massachusetts
Independent Contractor Law does not apply to non-Massachusetts
residents working outside of the state.
On appeal, the Massachusetts Supreme Judicial Court reversed the
trial court’s decision. Significantly, the court stated that
“there is no presumption against the application of
Massachusetts statutes to conduct occurring outside Massachusetts
but within the United States.” Accordingly, the court
remanded the case back to the trial court for an evaluation of
whether the Massachusetts Independent Contractor Law should be
applied to the plaintiffs’ claims.
This decision raises the specter that Massachusetts wage and hour
laws, including the strict definition of independent contractor set
forth in the Massachusetts Independent Contractor Law, could be
applicable to workers who never even set foot in the
Commonwealth.
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