Physician Classification Under Independent Contractor Law
Alex was a psychiatrist providing services to a mental health treatment center in Massachusetts. Though she was expected to exercise her independent clinical judgment, she was closely supervised and required to follow detailed protocols and procedures by the institution.
In addition, the work she did was indistinguishable from the work that other, employed, physicians did, and her services were clearly part of the core business of the employer, which was to provide mental health care. This relationship was not problematic until the facility stopped paying her invoices. Because they had classified her as an independent contractor, they understood she was not protected by the wage and hour laws, and did not see any consequences to being chronically late with her pay. Eventually Alex had no choice but to terminate her contract with the facility, because she could not continue to go without pay for her work. At that point they owed her over $100,000 for her services, and were continuing to stonewall her about payment. Independent Contractor Law SolutionWhen Alex came to us, she was looking for a way to get the compensation she was owed, without having to incur significant legal costs. Under her contract, there was no provision for her to collect attorneys' fees if she had to sue to get paid.
Under the wage and hour laws, however, the law requires the employer to pay legal fees if they are liable for late paid or unpaid wages. We reviewed Alex's situation and concluded that she should have been treated as an employee under the Independent Contractor Law. This was because (i) the services she provided were essential to the facility's core business; and (ii) she was subject to significant control and direction in the performance of her duties. We helped her get her right to sue letter from the Attorney General, which is required to bring a Wage Act complaint. We then filed suit on her behalf, conducted discovery, and ultimately settled the case in a way that made her whole both for her compensation and for her legal fees. |
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Postscript
Alex was able to move on from this unfortunate situation and cure the financial hardship that it caused for her.
If you are in a similar situation, remember that just because it may be common for people to work as independent contractors in your field, that does not mean it is legal. Also remember that the wage and hour laws apply to all employees, even professionals like physicians and psychiatrists.
If you are in a similar situation, remember that just because it may be common for people to work as independent contractors in your field, that does not mean it is legal. Also remember that the wage and hour laws apply to all employees, even professionals like physicians and psychiatrists.
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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.
