SENATE DOCKET, NO. 1090        FILED ON: 1/19/2017

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1009

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Eileen M. Donoghue

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act providing a safe harbor for self-employed individuals.

_______________

PETITION OF:

SENATE DOCKET, NO. 1090        FILED ON: 1/19/2017

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1009

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninetieth General Court
(2017-2018)

_______________

An Act providing a safe harbor for self-employed individuals.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Section 148B of Chapter 149 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after the paragraph designation “(a)”, the following numeral:- “(1)”.

Said Section 148B of Chapter 149 is hereby further amended by inserting after the word and punctuation “performed.” the following:-

(a)(2) An individual or business entity who contracts to perform work or provide a service for the benefit of another shall be considered to have satisfied test (2) in (a)(1) above if:

(1) The individual or business entity has pre-registered as a payroll-taxpaying entity with the department of revenue and attested that said registration is being provided “voluntarily and free from coercion by any person or entity” and satisfies at least 6 of the following 11 requirements:

(i) chooses when and how to do the work, chooses the tool and techniques, and uses additional individuals or not at his or her discretion; exercises discretion and independent judgment with respect to matters of significance;

(ii) already possesses the skills required for the specific work or service;

(iii) possesses fixed ongoing costs that are incurred regardless of whether work is currently being performed or incurs unreimbursed expenses in connection with the work or services provided;

(iv) has significant investment in the facilities, tools, equipment or site where the work is performed;

(v) is generally free to seek other business opportunities, advertise and promote the services, and be available to others;

(vi) is paid a flat rate or fixed fee for the project;

(vii) can make a profit or suffer a loss on the project,

(viii) possesses a written contract describing the relationship;

(ix) is not provided with employee-type benefits such as insurance, a pension plan, vacation pay, or sick pay;

(x) is expected to work for a limited period of time;

and (xi) is able to represent the work as his or her own or retain rights to the work product; or

(2) the individual or business entity is conducting business in a franchise relationship subject to the rules and regulations of the Federal Trade Commission, and the relationship complies with those rules and regulations; or

(3) a court has determined that the application of test (2) in (a)(1) for that individual or business entity’s industry is preempted by federal law.