Legal Question in Workers Comp in Massachusetts

Re: Worker's compensation

Yes, all employers who have employees in Massachusetts are required to provide Worker's Compensation insurance for their employees.

Many employers try to avoid this by labeling their employees as "independent contractors". More often than not, this "independent contractor" label is incorrect. Relatively new regulations from the Mass. Dept of Labor spell out specific criteria for defining an "independent contractor" that are very restrictive. If you are not sure of the criteria, speak to an insurance specialist or a lawyer.

Employers who do not provide Worker's Compensation insurance for their employees are subject to various fines and penalties, and could be subjected to a "cease & desist" order that shuts down their business until the insurance is put in place. Perhaps even more important, an employer who provides Worker's Comp coverage cannot be sued by his employee for any on-the-job injury, even if the employer or a co-employee was negligent. On the other hand, an employer who does not provide Worker's Compensation coverage can be sued by his employee for the full measure of damages for any on-the-job injury--including medical expenses, loss of earning capacity, disability, disfigurement, and pain & sufferring--even if the employer was not negligent or the injury was entirely the injured employee's own fault. Many employers have been put out of business or forced into bankruptcy by this consequence of trying to save a few dollars on Worker's Compensation insurance.