As a business owner, it is important to know that there is a difference between employees and independent contractors. If you do not determine if a worker is an employee or contractor, you may find yourself in trouble when an individual is injured and filing for Massachusetts workers compensation.
It is important that Massachusetts business owners properly classify the individuals in the workplace. If misclassified, there may be cases of insurance fraud and deprivation of protection/benefits to employees. If you misclassify an employee in the state of MA, the individual will often be left without unemployment insurance and workers comp benefits.
According to Mass.gov, “businesses that properly classify employees and follow all of the relevant statutes regarding employment are likely to be at a distinct competitive disadvantage when vying for the same work, customers or contracts as those businesses that do not play by the rules. Further, by paying the proper taxes and insurance premiums, businesses following the Law are, in effect, subsidizing those businesses that do not.”
The bottom line: misclassification may negatively impact the business environment.
To avoid a dilemma, it is important to ask the independent contractor for a copy or proof of their Massachusetts workers compensation before hiring them for the job.
For more information on workers comp, contact our experts at Wolpert Insurance!