93a Doesn’t Apply To Relationships Between Independent Contractors And Companies
Judge MacLeod-Mancuso of the Middlesex Superior Court recently decided, in Stein v. Circadian Technologies, Inc., et al., that M.G.L. c. 93A does not apply to the relationship between independent contractors and the companies they work for. Massachusetts decisions have held that 93A does not apply to employment because the employment relationship is a private transaction that does not involve trade or commerce as contemplated by 93A.
This case involved an independent contractor who worked on commission for the company and who was fired after a dispute arose over unpaid commissions. The company attempted to modify the contract between itself and the independent contractor to avoid some payments and the independent contractor refused those modifications. Judge MacLeod-Mancuso ruled that the relationship between the independent contractor and the company was very similar to the employee-employer relationship, in that both were essentially private transactions not involving trade or commerce as required by 93A. The Plaintiff’s counsel argued that the independent contractor was actually a business, and therefore 93A should apply, but Judge MacLeod-Mancuso disagreed. While no recovery was available under 93A, the Plaintiff was awarded $700,000.00 in unpaid commissions.