BETTER SEEK LEGAL COUNSEL QUICKLY BEFORE YOU MISS YOUR WINDOW OF OPPORTUNITY.

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 and claims under the Wage Act that the employee is waiving.

What are the takeaways from the decision?

You should ALWAYS have an attorney review your severance agreement or termination agreement before your sign to ensure you have explored all possible claims you may have and fully understand what rights you are waiving.

If you are classified as an independent contractor there is a strong likelihood under Massachusetts law that you are misclassified.  In such a case you are entitled to damages and you should seek legal counsel immediately because each day that passes is less damages you may be able to recover.

If you are not receiving overtime pay and you think you should be, seek legal counsel immediately because if in fact you are entitled to overtime there is only a short window of time for which you can recover such payments.