Covered Business Entities and Covered Contract Workers

A business or trade shall annually determine if it is a covered business entity by the following method: (1) The business or trade shall count the total number of self-employed individuals with whom the business or trade contracted for services during each pay period in the previous calendar year and was required to report the payment for such services on IRS Form 1099-MISC. (2) The business or trade shall then calculate its total workforce by adding the number of self-employed individuals counted in 458 CMR 2.03(1) to the total number of employees, including full time, part-time, and seasonal employees, that the business or trade employed during each pay period in the previous calendar year. (3) If the number calculated in 458 CMR 2.03(1) is greater than 50% of the number calculated in 458 CMR 2.03(2), then, for the following calendar year, the business or trade is a covered business entity, and the self-employed individuals who contract with the trade or business are covered contract workers. (4) Notwithstanding the requirements set forth in 458 CMR 2.03(1) through (3), self-employed individuals or covered contract workers properly classified in accordance with M.G.L. c. 151A, § 2 are not considered part of an employer's workforce. 2.02: continued 458 CMR: DEPARTMENT OFFAMILY AND MEDICAL LEAVE Qualifying Reason. Any of the following reasons for which a covered individual is eligible for family or medical leave benefits: to bond with a child during the first 12 months after the child's birth, adoption, or foster care placement; to care for a family member's serious health condition; to care for a family member who is a covered service member; a qualifying exigency arising out of a family member's active duty or impending call to active duty in the Armed Forces; or the covered individual's own serious health condition that incapacitates the individual from performing the essential functions of the individual's job. Reduced Leave Schedule. A leave schedule that reduces the usual number of hours per workweek, or hours per workday, of a covered individual. Self-employed Individual. A sole proprietor, sole member of a limited liability company or limited liability partnership or an individual whose net profit or loss from a business is required to be reported to the Massachusetts Department of Revenue; provided, however, that such individual resides in Massachusetts. Serious Health Condition. An illness, injury, impairment or physical or mental condition that involves: (a) inpatient care in a hospital, hospice or residential medical facility; or (b) continuing treatment by a health care provider. Sibling. The biological, adoptive, step-brother or step-sister of a covered individual. State Average Weekly Wage. The average weekly wage in Massachusetts as calculated under M.G.L. c. 151A, § 29(a) and determined by the Director of the Massachusetts Department of Unemployment Assistance. Trust Fund. The Family and Employment Security Trust Fund established in M.G.L. c. 175M, § 7. Wages. Shall have the same meaning as provided in M.G.L. c. 151A, § l(s). Weekly Benefit Amount. The amount of wage replacement paid to a covered individual on a weekly basis while the covered individual is on family or medical leave, as provided in M.G.L. c. 175M, § 3.