On July 13, 2022, the Massachusetts Appeals Court signaled a victory for Massachusetts employers who rely upon independent contractors. In Tiger Home Inspection, Inc. v. Dir. of the Dep’t of Unemployment, the Appeals Court reversed decisions from the Department of Unemployment (“DUA”) and trial court, concluding that the inspectors were independent contractors under Massachusetts’s Unemployment Insurance statute (“Unemployment Law”) and, thus, ineligible for unemployment benefits. Focusing on Prongs A and C of the Unemployment Law’s “ABC” test for classifying independent contractors, the Appeals Court provided employers with excellent precedent and concrete guidance for navigating those elements of the test. Notably, the Unemployment Law’s ABC language largely tracks the Massachusetts Wage Act’s “ABC” test, with Prongs A and C using identical language. As a result, Tiger Home Inspection arguably provides employers with much-needed clarity for navigating both statutes.
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