Sen. Bruce E. Tarr files bill to create "safe harbor" for service contractors

Senator Bruce E. Tarr filed legislation on Jan. 9, 2025, proposing a statutory "safe harbor" that would identify categories of workers who could be treated as independent contractors under Massachusetts law. The filing is Senate Docket No. 190 and appears as Senate Bill No. 1373.

If enacted, the bill would amend Section 148B of Chapter 149 of the Massachusetts General Laws by inserting a new numbered paragraph and an alternate test that grants safe-harbor status to individuals who meet specified conditions. The proposal seeks to clarify independent-contractor status through a combination of pre-registration, compensation thresholds and occupational criteria.

Under the proposal, an individual who has pre-registered as a payroll-taxpaying entity with the Massachusetts Department of Revenue and attests that the registration is provided "voluntarily and free from coercion by any person or entity" would satisfy one of the statutory tests if the contract for work meets at least one of several conditions. Those conditions include (1) compensation that equals or exceeds $30 per hour, $1,200 per week, or $5,160 per month; (2) work that requires professional certification or licensure and where the individual holds that certification; (3) business conducted in a franchise relationship that complies with applicable Federal Trade Commission rules and regulations; (4) work that by occupational definition consistently requires exercise of discretion and independent judgment on matters of significance, advanced knowledge in a field of science or learning, or recognized creative or artistic talent; or (5) work where the individual is granted ownership of or copyright to the work product.

The bill text expressly references an amendment to the drafting of Section 148B and repeats the filing history line noting similar matter filed in the 2023–2024 session (Senate No. 1222). The filing does not record committee referral actions in the text excerpt provided, but the bill summary lists "Labor and Workforce Development," indicating the committee typically responsible for such matters.

The filing stage recorded on Jan. 9, 2025, reflects introduction of the bill; the text does not show any legislative vote, committee action, or enactment. The measure, if debated or amended in committee or on the Senate floor, could change the thresholds or the scope of the listed criteria.

Affected parties identified by the bill text include independent contractors and individuals who provide services, licensed professionals, franchisees and the employers or contracting entities that engage them. The proposal would also involve the Department of Revenue insofar as pre-registration is required.

Senate Bill No. 1373, as filed, establishes a clear set of alternative criteria rather than a single test and would create a statutory safe harbor for workers who meet the conditions the bill lists. Further steps for the measure are standard legislative processes: committee consideration, possible amendment, and votes in each branch of the General Court.