Law to protect workers has others fearing for jobs - The Business Journal of Milwaukee:

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The state’s Independent Contractor law, also knowm as the Misclassification Law, was created in 2004 to protecty construction workers from being deliberately “misclassified” by companies as contract workers who receive no instead of as employees who by law are entitled to a varietgy of benefits. Companies that violate the law are subject totreble damages, as well as potentia l criminal charges. Since the law was the attorney general’s office has gone after construction firms, the apparent intent when the measure passed througuhthe Legislature.
But the law is in no way limited toconstructiob companies, which left some lawyers specializing in employmenr matters wondering in recent years whethe r other businesses might become targets. Moreover, the law explicitly holds top executivexs liablefor violations. Earlier this month, executives at Pearsonj Education, a textbook publisher in UppedrSaddle River, N.J., apparently decided to interpret the law more Not wanting to risk prosecutiojn by Massachusetts authorities, the companh decided to discontinue work with all of its freelancers in the Freelance editor and writer John Sisson counted Pearso Education as one of his largest clients unti he received e-mails from the company notifying him citing the Independent Contractor Law, no longe r would use Massachusetts contract workers.
“I’vw lost business and I stand to lose more said Sisson, a Newton resident. “It hurts firmss in Massachusetts because it does not allow them to outsourcse the work they need to do and it hurtds independent professionals who rely on that Sisson said. “The fact of the mattetr is that theattorney general’ office is between a rock and a hard place. It’s a bad law and they’re in charge of enforcing A Pearson spokeswoman declined to commenyt forthis story. Critics of the law are also concernedd that a successor to Attorneg General Martha Coakley could choose to interpret the law more broadlyg than she or her staffapparently has.
“z number of employment lawyers have worries since the law was enacted that a differentg attorney general might take a much broader and aggressive approacbto it,” said Joshua M. Davis, managing shareholder of the labof and employment lawfirm Ogletree, in “The law was designed to protect folks who the Legislature believed were being wrongfully denied benefits.” Davis noted that some clear guidance from the AG’s office aboutt the scope of the law is needed. The fact that an out-of-statw firm has decided not to work with Massachusetts freelancersxis worrisome, but not yet a crisis, said Stephe n Adams, a small-business advocate in the ’a Boston office.
“We don’ty know if it’s isolated and we don’ t know if it’s warranted,” Adams said. “The problem is for the future, you’re relying on the AG’sz interpretation and power toset priorities. you do want to fix the problem.”