The Massachusetts Supreme Judicial Court just provided much-needed and helpful guidance on the appropriate standard for determining whether an entity is an individual’s “joint employer” in order to determine liability under the Massachusetts wage-and-hour laws (Jinks v. Credico (USA) LLC). In short, the Court confirmed that the same “totality of circumstances” test used when analyzing federal wage and hour matters will be used for determining joint employment status in Massachusetts, guided by four factors: whether the entity (1) had the power to hire and fire the individual, (2) supervised and controlled the individual’s work schedules or conditions of employment, (3) determined the rate and method of payment, and (4) maintained employment records. What do Massachusetts employers need to know about this welcome change and what can you do to capitalize on this ruling?
The Facts: Credico Contracts with DFW to Provide Sales Services to Clients
DFW Consultants agreed to provide sales services for some of Credico’s clients. In turn, DFW retained a number of individuals to work on marketing campaigns in Massachusetts for Credico’s clients. The agreement between the parties specifically confirmed that DFW retained “sole and absolute discretion” in carrying out its assignments, and exclusive control over its policies governing wages, hours, and working conditions of its employees. DFW classified its sales workers as independent contractors.
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