August 2022: Massachusetts Appeals Court Says Home Inspectors Were Independent Contractors and Not Employees

17 Aug

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Update Applicable to:
All employers that utilize independent contractors in the state of Massachusetts.

What happened?
On July 13, 2022, the Massachusetts Appeals Court issued a decision in Tiger Home Inspection, Inc. v. Dir. of the Department of Unemployment Assistance. The Appeals Court held that home inspectors were classified properly as independent contractors under the state Unemployment Insurance (“UI”) law.

What are the details?
The Appeals Court reversed both a state agency and a lower court that found the home inspectors at issue were misclassified employees. 

The UI standard for independent contractor classification varies from the standards applicable under Massachusetts wage and hour law and other laws, but the standards overlap.  Accordingly, the decision offers broad and important insight regarding independent contractor classification in the Bay State.

You can read more about the background of the case and the court decision below:

Case Background

Decision on Appeal

For more information, please see the links below:

Tiger Home Inspection, Inc. v. Dir. of the Department of Unemployment Assistance

Article

What do employers need to do?
Employers should review the links provided above and ensure that any workers they have are classified correctly.

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