Delivery Driver Independent Contractor
Ron was a delivery truck driver working for an appliance company in Massachusetts. He and other drivers were classified and paid as independent contractors, not employees.
The company required Ron and others in his position to create their own LLC's, to further the appearance that this was a contractor relationship, not an employment relationship. In reality, however, he worked full time for this company, and had no other customers or clients he provided these services to through his LLC. He was also subject to significant control and direction by the company. The issue of his classification came to a head when Ron suffered an injury and had to take leave and request accommodations when he returned to work. Upon his return, he was subject to ridicule about his injury and threatened with termination. He then needed to take medical leave to care for his wife, who had been diagnosed with a serious health condition. He was then fired. As an employee, Ron would have been protected in taking medical leave under the FMLA, and would have been protected against retaliation for his own medical leave. As an independent contractor he did not have any of those rights, unless he could challenge his classification and establish that he should have been an employee all along. As it was, he was faced with the loss of his job and only income source at a precarious time for his family. |
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Independent Contractor Law Solution
When Ron came to us, he was looking for compensation for his time out of work after what would have been an unlawful termination had he been a W2 employee.
The wrinkle for Ron is that his job involved driving a large truck in multiple states.
That meant that one of the requirements of the Independent Contractor Law- that his services be outside the core business of the employer- did not apply. This is because federal law preempts that provision for drivers of trucks over 10,000 pounds gross vehicle weight in interstate commerce.
The employer, however, still had to meet the other two prongs of the test: (i) that he was free from control and direction; and (ii) that he was regularly in the business of providing similar services to others.
It became clear very quickly that the reason he had been required to incorporate was to try to satisfy the second prong, and make it appear that he was in a separate business. But the truth was the company was his only customer, so that prong was not satisfied.
In addition, we were able to demonstrate substantial supervision and control in the performance of his duties, which called the first prong of the test into question as well.
We helped him get his right to sue letter from the Attorney General, which is required to bring a Wage Act complaint. We then filed suit on his behalf, conducted discovery, and ultimately settled the case in a way that compensated him for his wrongful termination.
The wrinkle for Ron is that his job involved driving a large truck in multiple states.
That meant that one of the requirements of the Independent Contractor Law- that his services be outside the core business of the employer- did not apply. This is because federal law preempts that provision for drivers of trucks over 10,000 pounds gross vehicle weight in interstate commerce.
The employer, however, still had to meet the other two prongs of the test: (i) that he was free from control and direction; and (ii) that he was regularly in the business of providing similar services to others.
It became clear very quickly that the reason he had been required to incorporate was to try to satisfy the second prong, and make it appear that he was in a separate business. But the truth was the company was his only customer, so that prong was not satisfied.
In addition, we were able to demonstrate substantial supervision and control in the performance of his duties, which called the first prong of the test into question as well.
We helped him get his right to sue letter from the Attorney General, which is required to bring a Wage Act complaint. We then filed suit on his behalf, conducted discovery, and ultimately settled the case in a way that compensated him for his wrongful termination.
Postscript
Ron was able to move on from this unfortunate situation and cure the financial hardship that it caused for him.
If you are in a similar situation, remember that an employer has to meet all three of the prongs under the Independent Contractor Law. This means that even if they are excused from one by operation of law (here, the federal preemption of the "core business" requirement), you still may have been misclassified.
If you are in a similar situation, remember that an employer has to meet all three of the prongs under the Independent Contractor Law. This means that even if they are excused from one by operation of law (here, the federal preemption of the "core business" requirement), you still may have been misclassified.
How Our Employment Lawyers Can Help
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We have years of experience helping people with employment classification issues, and we would be happy to help. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
