Introduction
On July 13, 2022, the Massachusetts Appeals Court issued a decision in Tiger Home Inspection, Inc. v. Dir. of the Dep’t of Unemployment Assistance. The Appeals Court held that home inspectors were classified properly as independent contractors under the state Unemployment Insurance (“UI”) law. In so holding, the Appeals Court reversed both a state agency and a lower court that found the home inspectors at issue were misclassified employees. This appellate decision marks a win for companies that utilize independent contractors. 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.
Case Background
The UI law establishes a three-pronged “ABC” test to determine whether someone is an employee or an independent contractor for purposes of that law. It presumes employment status, which the putative employer can overcome by establishing each of the following criteria:
(A) the individual is free from control and direction in performing services, both under the individual’s contract for the performance of service and in fact;
(B) the service performed is outside of the putative employer’s usual course of business or is performed outside of all the places of business of the enterprise for which the service is performed; and
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