Boston, MAMassachusetts Attorney General Martha Coakley—a Democrat who recently lost her bid to save the late Ted Kennedy's seat for her party—issued a statement on February 1 that outlined various Massachusetts employment law violations alleged against four Massachusetts meal delivery companies. The allegations centered on the misclassification of drivers as independent contractors rather than employees of the companies involved.
The Office of the Attorney General for Massachusetts was alerted to the potential wrongdoing when one of the drivers filed a complaint.
According to the statement, misclassified individuals are often left without unemployment insurance and workers' compensation benefits. Misclassified individuals do not have access to employer-provided health care and sometimes receive reduced wages or cash payments.
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The Attorney General's Fair Labor Division launched an investigation and a review in June of last year. Investigators requested and reviewed records from various meal delivery companies operating in the state and began proactive discussions with a number of companies regarding proper classification of employees. Dining-In Inc. of Brighton, Restaurants to You Ltd. of Stoughton, Dash Deliveries LLC. Of Boston and Mix Menu Inc. of Cambridge were all cited for violations.
The Office of the Attorney General stated that the four companies had cooperated and agreed to fully comply with all Massachusetts Wage and Hour Laws, specifically with the Massachusetts Independent Contractor Statute.
Settlement agreements were reached with all four companies. The terms were not disclosed, but all four companies have agreed to classify their employees as drivers, rather than as independent contractors.