A minority owner in a limited liability company can be an employee for bringing misclassification and Wage Act claims. A person was a member and 10 percent owner of a Limited Liability Company while also working for the company as an independent sales agent. The company argued he was an owner, which made him an employer, and he could not sue as an employee. The Court allowed the case to continue.
Why This Is Important…An employer for wage act purposes is someone with management responsibilities akin to a corporate president or treasurer with control over finances or payment of wages. This is the first Massachusetts decision to conclude that individuals with minority ownership interests can bring Wage Act and independent contractor misclassification claims.
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