Genesis HR Selections: Massachusetts District Court rules on Independent Contractor Misclassification

By: Bob Burbidge

Here are this week’s links to a few good stories that we found and selected because we feel they might add valuable insights and perspectives for small to medium size businesses.

The US District Court for Massachusetts has weighed in with a decision involving Independent Contractor misclassification. In Magalhoes v. Lowe’s Home Centers, Inc. Civil Action No. 13-10666-DJC (Mar. 10, 2014), the court, citing an earlier US Supreme Court decision, ruled that an Independent Contractor was not entitled to employee benefits of the defendant company. Greg Mersel of Baker Hostetler writes the summary which was posted on the JD Supra Business Advisor website entitled Massachusetts Court Refuses to Certify Case Involving Alleged Independent Contractor Misclassification. The takeaway here is that employers should still be wary when contracting with an Independent Contractor. While the defendant Lowe’s Home Center prevailed, we presume that the cost to defend was significant.
Employee Engagement is generating a fair amount of discussion lately. Oftentimes, a key component of an effective employee engagement program is how well employers interact with new workers during the first year. Carina Wytiaz, writing for the OC Tanner blog and reposted by TLNT has some great suggestions in 7 Ways to Inspire First Year Workers (and Show Them The Big Picture, Too). We contend that following her advice would help foster a better employee retention rate.
And last, but certainly not least, when it comes to business ethics, it is important to set the bar high and keep it there. So says Brian Moran, founder and CEO of Brian Moran and Associates. We absolutely agree. While taking the high road is the right thing to do, it also works well from a practical perspective. Read the full story in 5 Reasons to Take the High Road in Business posted by Open Forum.