Over the past few years, lower courts in Massachusetts have grappled with determining whether the “ABC test” under the independent-contractor statute provides the proper framework for assessing joint-employment liability. The Supreme Judicial Court (SJC) has finally answered that question. On December 13, 2021, in Jinks v. Credico (USA) LLC, the SJC held that the independent-contractor statute’s “ABC test” does not apply and instead adopted the Fair Labor Standards Act’s (FLSA) “totality of the circumstances” approach to joint employment.
Credico was a client broker for independent direct marketing companies. It contracted with DFW Consultants, Inc. (DFW) to provide sales and marketing services for its clients in Massachusetts. To provide those services, DFW hired three of the plaintiffs – Kyana Jinks, Antwione Taylor, and Lee Tremblay – as salespeople. DFW classified Jinks and Taylor as independent contractors and Tremblay as an employee.
The plaintiffs brought suit against DFW, Credico, and individual defendants, alleging violations of Massachusetts’ wage-and-hour laws on behalf of themselves and similarly situated employees. With respect to Credico, the plaintiffs alleged that it had misclassified Jinks and Taylor as independent contractors and had failed to pay all of them overtime and minimum wage under Massachusetts law.
After discovery, Credico moved for summary judgment on the plaintiffs’ claims, arguing that it was not the plaintiffs’ joint employer. The trial...
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