Massachusetts to Grant Work Leave Rights to Domestic Violence Victims?

By an overwhelming vote of 34-0, the Massachusetts State Senate voted on January 12 to grant victims of domestic violence up to 15 days of annual leave. The bill is not yet law as it must be approved by the state’s house of representatives and then signed by Governor Deval Patrick. Given the lack of dissent in the Senate, however – one brave Senator did vote “present” in apparent protest, a move that suggests opposition in the House will be hard to come by — the law seems likely to be enacted sometime soon.

 In its current form, the domestic violence leave law would apply only to companies with 50 or more employees. This is the same size threshold as applies to the Family and Medical Leave Act (FMLA), a federal law that grants workers up to 12 weeks of leave annually and applies to things like child birth, adoption, and medical conditions. The 15 days of leave for domestic violence victims would be in addition to FMLA’s 60. It could be used to obtain medical attention or counseling, appear at legal proceedings, meet with law enforcement officials, or ”address other issues directly related to the abusive behavior against the employee or family member of the employee.” Any of these provisions or others in the Senate’s bill could be amended after consideration by the House of Representatives.

In any form, the law is bound to raise concerns among large employers and business advocacy groups. Massachusetts already imposes a variety of restrictions on the ways employers treat their workers, and the domestic violence bill may be viewed as piling on. Still, the idea comes in response to a real need, and few would argue against the idea of helping victims, at least conceptually. Indeed, victims of domestic violence and their advocates might also be unhappy with the Senate bill, which clearly will fail to reach the many domestic violence victims who work for small Massachusetts companies. In any event, Massachusetts would not be the first state to grant work leave rights to domestic violence victims. Already, laws in California, Connecticut, Florida and other states grant job protections in this area. Some form of leave law certainly seems appropriate for the Commonwealth now and, with any luck, the legislature will strike a proper balance for our state. 

 

Legislature Holds Hearing on Bills that would Rewrite Independent Contractor Law

A committee of the Massachusetts state legislature held a hearing on November 3, 2011 to take input on 4 pending bills that aim to revise the state’s independent contractor statute. The law has been under fire from some circles due to language that, read literally, essentially bans the use of contractors in Massachusetts. It’s not the first time opposition forces have pressed for rewriting of the law. A similar effort last year was unsuccessful.

The independent contractor law appears at Mass. Gen. L. ch. 149, s. 148B. It requires that all workers be classified as employees unless the employer demonstrates that 1.  the worker is free from control in the performance of daily duties; 2. the work performed is outside the usual course of the employer’s business; and 3. the worker is customarily engaged in an independent business. Its rewriting to this form in 2004 effectively banned the legal use of contractors, since almost no employer can meet the second prong of this three-part test and many cannot meet the other two. [Read more...]

Wage Act’s Triple Damages Provision is Not Retroactive

Massachusetts’ highest court has ruled that the 2008 amendment to the state’s Wage Act is not retroactive. As a result, claims involving work that straddles the July 2008 effective date of the rewritten law will be governed by two different standards. For damages related to work that occurred prior to July 2008, a plaintiff employee will be required to persuade the court to double or triple the sum awarded. Any damages for work performed after July 12, 2008 will be automatically tripled by law.

The Wage Act amendment came in response to a 2005 SJC decision that held the award of triple damages under the Act was discretionary, not mandatory as was previously believed by most employment lawyers. Indeed, several lower courts interpreted the old version of the Act to require an award of triple damages. After the SJC concluded otherwise, the Massachusetts state legislature amended Mass. Gen. L. ch. 149, s. 150 to clarify its language and require triple damage awards. The law also requires the award of legal fees to a prevailing employee.

MCAD Exempts Itself from from Bankruptcy Stay Rule

In a decision many employment lawyers may find surprising, the Massachusetts Commission Against Discrimination refused in June to stay proceedings in an age and sex bias case despite the employer’s filing of a bankruptcy petition. The MCAD instead proceeded to hearing and entered a judgment of nearly $250,000 for the employee, concluding that the bankrupt respondent “has chosen to default rather than present a defense.”

The decision is contrary to language from the United States Bankruptcy Code, which requires that civil proceedings — including administrative processes like those at the MCAD — be stayed as to any party that files for bankruptcy protection. The idea that an agency like the MCAD could somehow be exempt from this federal law, which generally trumps any conflicting statute at the state level, is itself surprising. The ruling, however, is supported by a 1999 Bankruptcy Court decision. It permitted the Commission to enter injunctive and monetary relieve under an exception to the Code’s stay requirement that appears to apply to the continued exercise of “police and regulatory power” in chemical weapons proceedings.

While the ultimate effect of the stay decision itself is a matter for the case’s parties alone, the ruling delivers a plain message from the MCAD to employees and employers alike: think carefully as you weigh whether and how to proceed at the Commission. Regardless what the law may appear to require, the MCAD possesses broad regulatory authority that may be used in suprising ways as the Commission pursues its goal of remediating illegal discrimination.

Enforcing Noncompetion Agreements against Independent Contractors may be Problematic for Employers

As if employers don’t have enough to worry about when they try to enforce noncompetition agrreements against their former employers, some are discovering that things get even trickier when they look to do so against workers who were arguably misclassified as independent contractors. In addition to the normal hurdles — including proving that a valid contract was formed and then breached by the employee, and establishing that a worker’s new job will substantially injure legitimate business interests — they may also face a formidable claim that the working relationship was itself illegal under Massachusetts law and, consequently, that their otherwise valid noncompetition agreements are void and of no effect.

This sort of situation is arising with increasing frequency in the real estate industry, for example, where agencies routinely classify their realtors as independent contractors despite the fact that, in all likelihood, they cannot pass muster under standards established by Mass. Gen. L. ch. 149, s. 148B. Many of these agencies also routinely required agents to sign non-competes. While it’s true that, to date, enforcement authorities have not focused attention on apparently illegal independent contractor deals like these, the approach by government does not impact the parties themselves. An improper independent contractor deal can still be raised as yet another substantial defense in a noncompetition enforcement action.

The problem for employers here is fundamental. Generally speaking, persons who violate provisions of law cannot later claim their benefits. Similarly, persons who violate contractual terms cannot later seek to enforce violations by other parties to them. In the employment setting, independent contractror arrangements that don’t comply with state law are void, and employees cannot be bound to honor them, even where they agreed to the terms in the first place. Employers, on the other hand, can be found liable for damages to the same employees who agreed to work as contractors. Where a noncompetition agreement is part of that sort of deal, an employee might argue persuasively that there is no valid basis to enforce it. Non-competes, after all, can withstand attack only when supported by a tangible benefit to the employee involved. Though hiring a worker and providing him/her a job is generally sufficient for this purpose, improperly classified workers might establish that, because the foundation of their work agreements are invalid, so too are the noncompetition clauses contained either within them or as part of some related document.

To be sure, this theory needs to be tested in the courts, and employers might in some cases argue for application of enforcement principles that apply to non-employment relationships. Standards there are in fact easier to meet in enforcement actions, but are unlikely to apply unless the employer can first establish the independent nature of the relationship to its former contractor. If that independent contractor was in fact an employee under law, that task may prove difficult or impossible.

Jack K. Merrill, Esq.

Judge Shocks Employment Bar with Narrow Wage Act Ruling

In a decision that can be described as nothing less than shocking to many in the employment law arena, a superior court judge has held that the Massachusetts Wage Act does not apply to limited liability companies (LLC) in the same way it covers corporations. Applying a narrow view of the law’s specific language and rejecting the implications of her decision, Judge Bertha Josephson concluded that managers of LLCs are not personally on the hook in the way that presidents, treasurers and other officers of corporations are when wages aren’t paid to employees.

The decision, reported in the July 4, 2011 edition of Massachusetts Lawyers Weekly, could have broad and substantial implications. In many wage cases and for very good reasons, employees name individual decision makers as defendants in lawsuits. This helps ensure that employers do not hide behind what may be underfunded or even bankrupt business entities and claim that they do not have the funds to pay what is owed to their workers. Under  Cook v. Patient EDU, LLC, employers might now avoid paying wages via the expedient of forming an LLC or simply closing down the ones they already have. Though the decision comes from the superior court level and is thus not binding on other trial judges, it will likely be cited liberally by defense attorneys until and unless it is overturned on appeal. Given the slow pace of legal cases generally, that could take years and cause substantial difficultiies to employees of LLCs who believe they are owed back wages. [Read more...]

Workers’ Comp Insurance No Bar to Suit by Independent Contractors Hurt on the Job

The Supreme Judicial Court has added yet another reason for employers to properly classify their workers — the threat of a direct lawsuit by non-employees injured on the job, even if those workers first collect hefty workers’ compensation payouts. In a May 23, 2011 decision, the Court held that the state law barring injured employees from suing their employers does not apply to subcontracted workers. Two victims of a residential construction project explosion were permitted to first settle with the defendant’s workers’ compensation insurer, then sue the company that controlled the worksite where they were injured. [Read more...]

Employers Liable for Retaliation Against Former Employees

It’s always been clear that taking negative action against an employee because he/she filed a discrmination complaint or supported another employee who did so is illegal under Massachusetts law. Now, the state’s highest court has made clear that employees are protected from retaliation even when the supposed misconduct occurs years after employment ends.

The May 2011 decsion by the Massachusetts Supreme Judicial Court (SJC) may take even seasoned employment lawyers by surprise. Indeed, few employee  complaints  even relate to post-employment conduct, and analyses of potential cases has consequently focused on events that occurred while a worker was employed. That approach, however, is suddently outdated by strong SJC language: “a person need not be an employee to enjoy” the protection of the anti-retaliation provisions of Massachusetts’ primary anti-discrimination statute, Mass. Gen. L. ch. 151B. [Read more...]

I have just returned to work after maternity leave. What are my legal rights?

Additional Information:

I have recently gone back to work after taking maternity leave. Before I went on leave, I created a new work schedule with my manager for when I returned, which included a day working from home every week. One week before I was to return to work, my manager emailed to say our VP did not approve the schedule and I needed to make a new one. Specifically, I could not work the day at home and needed to do all my hours in the office.

It is very common for staff to work from home at my organization, either as planned days home, unplanned (ex. sick days), bad weather days, etc, and this was why my manager and I included a day at home in my new schedule.

Now I am being told I can’t do this day at home each week, while other staff members continue to work from home, to the point where it is marked on their Outlook calendars. The underlying message is that I can’t do this because I have a baby, although no one has said that outright. Do I have any recourse here? I’m just looking for things to be equitable.

ATTORNEY ANSWER:

It sounds like there could be some help for you legally, though the result of any efforts to correct this will be determined by the full set of circumstances and, to a large degree, by the reasonableness or lack of reasonableness, as the case may be, of your employer. Your own flexibility on the work-at-home issue might also come into play since, regardless who is right or wrong from a legal standpoint, compromise on issues like yours may be superior to the strains and expenses of litigation (which frequently is accompanied by job loss).

Under the Massachusetts Maternity Leave Act, women who work full-time for 90 days or more are generally entitled to eight weeks of leave and a return to their jobs thereafter. This normally involves the very same job and the same schedule, and women who seek to amend things run the risk of losing their return-to-work rights. Employers are not, however, permitted to treat pregnant women differently from other employees. Once a woman returns to work on whatever terms may be applicable, they must continue this approach. Where an employer imposes different requirements or expectations on the mother of a newborn, it runs the risk of violating other anti-discrimination laws that bar differential treatment of employees based on gender, race and the like.

[Read more...]

My job was eliminated. What are my rights?

Additional Information:

Back in August, my position as an Inside Sales rep for a Framingham MA company was eliminated.  I was moved over to the marketing department. I was never given a new title and did not sign any paperwork. I was told that I would not be receiving commissions anymore but that my new salary would compensate for the loss in commissions. I do not have this in writing however. Fast forward to today: I still have not received a new title, although I am supporting all the of senior management. I am paid out of the marketing payroll. My salary is what my base salary was when I was doing inside sales. My workplace is using me I feel. I am doing things that are required of top paid executives, but I am making less than I was. What are my rights and can I collect unemployment if I quit due to these circumstances? (i.e. reduced pay) Thanks.

ATTORNEY ANSWER:

As you may already know, Massachusetts follows the at will employment rule, which generally provides that both employers and employees are free to either maintain or end a working relationship at any time, for any reason. The application of this principle of law to your circmustance may leave you with few options and certainly dictates that you tread carefully in making decisions about your future with this company.
[Read more...]