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The Massachusetts Supreme Judicial Court recently held that individuals who are misclassified as independent contractors instead of employees can recover damages for up to three years of their misclassification. In most cases the statute of limitations will not be tolled, meaning, it will not go back further that three years even if the employee did not realize he or she had a claim. Also, if you are not being paid overtime due to your independent contractor status and are entitled to such pay, the statute of limitations is only two years to recoup the additional “overtime” amount.
The court also held that an employee may release his or her Wage Act claim in a settlement or termination agreement so long as a the language of the release of the Wage Act is plainly worded, understandable and specifically refers to the rights