Changes to Employment

November 28, 2022

A 2022 Year-end Wrap Up and a Look Ahead to 2023



By Justin Goldberg, Esq.

Within the broad realm of employment law, this past year was marked by increased protections to employees through changes to independent-contractor classifications, raising of minimum and service wages, increasing benefits for family and medical leave, safeguarding hairstyles of protected classes, and other changes.


Looking ahead to 2023, it certainly appears to be headed down a similar path, with employee safeguards continuing to solidify. Employee security and compensation guarantees to be a highly litigated issue in the coming year.


Here is a look back — and ahead:

 

U.S. Department of Labor Publishes Independent Contractor Proposed Rule

On Oct. 11, the Biden administration, via the U.S. Department of Labor (DOL), proposed to modify Wage and Hour Division regulations so as to revise its analysis for determining employee or independent-contractor classification under the Fair Labor Standards Act.


This was done with the aim to be more consistent with judicial precedent and the act’s text and purpose. This will mark the administration’s second attempt at undoing the Trump-era standard, which it claims denies basic worker protections such as minimum wage and overtime pay.

Secretary of Labor Marty Walsh was quoted as saying, “while independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” and that “misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.”


Industries such as gig companies, construction, trucking, home care, janitorial services, delivery, personal services, hospitality, and restaurants that use independent contractors as staff should pay close attention to this anticipated development. Their operating costs will undoubtedly increase if they are required to reclassify their independent contractors as employees, due to the tax liabilities and minimum-wage, labor, safety, and other legal requirements that apply to employees.

The Trump-era rule outlined a multi-factor test (five total) to determine if the worker is an independent contractor or an employee; however, it gave far greater weight to two core factors: the nature and degree of the worker’s control over the work, and the worker’s opportunity for profit or loss based on personal initiative or investment.


The Biden administration’s proposal would consider those two factors, but include four others for a total of six: investments by the worker and the employer, the degree of permanence of the working relationship, the extent to which the work performed is an integral part of the employer’s business, and the degree of skill and initiative exhibited by the worker.


These six factors guide the analysis of whether the “economic realities of the working relationship” show a worker to be either dependent on the employer for work or in business for themselves based on a “totality of the circumstances.”


Under the proposed modification, no one factor or set of factors is presumed to carry more weight, and the DOL may also consider additional factors beyond those six, if they indicate the worker may be in business for themselves.

 

Increases in the Minimum Wage and Service Rate

Massachusetts employees making minimum wage are going to see a pay increase of 75 cents per hour, effective Jan. 1, 2023, bringing their pay to $15 per hour. This does not include agricultural workers, whose pay remains at $8 per hour. Workers under the service rate (those who provide services to customers and make more than $20 a month in tips) will see an increase of 60 cents per hour, beginning in 2023, as the service rate is now $6.75.

 

Changes to Massachusetts Paid Family and Medical Leave

In 2022, the maximum weekly benefit for Massachusetts Paid Family and Medical Leave is $1,084.31; however, in 2023, it will increase to $1,129.82. Also beginning in 2023, the contribution rate for employers with 25 or more covered individuals will decrease from 0.68% of eligible wages down to 0.63% of eligible wages. Employers should ensure that their wage deductions and contributions are adjusted accordingly. This is the second straight year the contribution rate has decreased.

Employees are still not permitted to use their accrued sick or vacation leave to ‘top off’ their weekly benefit. While there may have been rumors that Massachusetts was planning to change this in 2023, no such change appears forthcoming.

 

The CROWN Act

In 2022, Massachusetts enacted the Creating a Respectful and Open World for Natural Hair (CROWN) Act, making it the 18th state to pass similar legislation (see related story on page XX). This law is aimed at quashing discrimination on the basis of “traits historically associated with race, including, but not limited to, hair texture, hair type, hair length, and protective hairstyles.”

The law further defines “protective hairstyles” to include “braids, locks, twists, Bantu knots, hair coverings, and other formations.” Employers who violate the CROWN Act will be liable for compensatory damages, as well as possible punitive damages and attorneys’ fees.

The CROWN ACT was inspired by two teenage twin sisters’ alleged violation of a school hair and makeup policy that prohibited extensions.

 

Bottom Line

Given the changes that have taken place — and the changes to come — it is a good idea to have your business schedule a check-in with an employment-law firm as we approach 2023.

 

This article was published in the most recent edition of BusinessWest.

September 25, 2025
Starbucks is facing a new wave of litigation, in this instance over its workplace dress code. Employees in California, Colorado, and Illinois allege that the Company’s updated policy forced them to purchase clothing items out-of-pocket without reimbursement, raising questions about employer obligations under state expense reimbursement laws. The Lawsuits On September 17, 2025, employees in Illinois and Colorado filed class-action lawsuits, while workers in California submitted complaints to the State’s Labor and Workforce Development Agency. If the Agency declines to act, those workers intend to pursue their own civil claims. The lawsuits are backed by the union organizing Starbucks workers, and plaintiffs argue that requiring employees to buy specific uniform items without full reimbursement violates the states’ statutes. Under laws in California, Colorado, and Illinois, employers must cover necessary business expenses, which can include uniforms or clothing mandated by a dress code. What the Dress Code Requires The revised policy, implemented in May 2025, requires employees to wear a solid black shirt (short or long sleeves, but not sleeveless or midriff-bearing) underneath their signature green apron. Pants must be khaki, black, or denim, and shoes must be in muted tones such as black, gray, navy, brown, tan, or white. The policy also forbids “theatrical makeup” and visible face tattoos, prohibits nail polish and tongue piercings, and limits workers to one (1) facial piercing. In an effort to offset the change, Starbucks provided two shirts free of charge to each employee. Workers contend this was not enough, since multiple additional items were required to comply with the policy. Court documents show that some employees who failed to follow the dress code were subject to verbal warnings or sent home before starting their shifts. Worker Claims One plaintiff, Shay Mannik, a shift supervisor in Colorado, reported purchasing four black T-shirts, compliant shoes, and jeans to meet the dress code requirements. Despite these costs, Mannik claims they were never reimbursed. “It’s unfair that a billion-dollar company puts this burden on workers already struggling with unpredictable hours and understaffed stores,” Mannik stated through attorneys. Starbucks’ Response Starbucks defended the policy as a way to “deliver a more consistent coffeehouse experience to our customers and provide our partners with simpler and clearer dress code guidance.” The Company emphasized that it issued two free shirts to employees to prepare for the change. Key Considerations for Employers The Starbucks litigation underscores several important lessons for businesses:  Uniform Policies May Trigger Reimbursement Duties. Even when employers provide some clothing, state laws may still require reimbursement if employees must make additional purchases. State Laws Differ. California, Colorado, and Illinois all impose expense reimbursement obligations, but requirements vary, and enforcement can be aggressive. Here in Massachusetts, an employer does not need to pay for or reimburse an employee for general clothing, such as khakis, a black shirt, and black shoes, since these are ordinary items that can be worn outside of work. If the employer requires a specific style, brand, or logo (making the clothing a true uniform) then the employer must provide or reimburse for it and cover the cost of maintenance if special cleaning is needed. The only exception for ordinary clothing is if the cost would reduce the employee’s pay below minimum wage. Policy Rollouts Should Weigh Legal Risks. Employers introducing or revising appearance standards should carefully evaluate potential compliance costs, both financial and reputational. Takeaway The lawsuits against Starbucks will test the boundaries of state reimbursement laws and may influence how courts interpret employer obligations regarding dress codes. For companies, this case highlights the need to review policies proactively and ensure expense reimbursement practices comply with applicable state requirements. At The Royal Law Firm, we advise businesses on preventive compliance and represent employers when disputes arise. Our team’s focus on business defense ensures that policies are both operationally effective and legally sound. The Royal Law Firm LLP is a woman-owned, women-managed corporate law firm certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
September 24, 2025
The Royal Law Firm is proud to announce that we have been ranked in the inaugural Chambers Spotlight Massachusetts Guide, which is a prestigious recognition from the internationally renowned legal research company Chambers and Partners! We are honored to be recognized for our exceptional expertise in Labor & Employment law. This ranking reflects our unwavering commitment to delivering top-tier legal counsel to businesses throughout the Commonwealth and beyond. Only 2% of attorneys are ranked by Chambers. The Royal Law Firm is the only Labor & Employment firm ranked in Springfield, MA. This award highlights small and mid-sized firms with a proven record of excellence and partner-level attention to client matters. Chambers Spotlight is a new guide designed to showcase the very best boutique and mid-sized firms across key U.S. legal markets, focusing on firms that combine regional insight, national impact, and client-focused service. About The Royal Law Firm The Royal Law Firm is a New England-based, women-owned law firm that exclusively represents businesses. Our attorneys are known for their aggressive litigation strategy, proactive employment law counseling, and commitment to understanding every client’s unique business model and goals. We are proud to be certified as a Women-Owned Business through state and national organizations including WBENC, NAMWOLF, and the Commonwealth of Massachusetts Supplier Diversity Office. The Royal Law Firm was founded by Amy Royal in 2008 with a mission to promote diversity in the legal field, serve businesses exclusively, and give back to her hometown community. As a seasoned trial lawyer with over 25 years of civil litigation experience representing companies, Amy specializes in employer-side employment law, business tort defense, labor law, and corporate transactions. She has successfully defended clients in individual and class action cases involving wage and hour issues, discrimination, harassment, FMLA, OSHA, ERISA, and more. Amy also advises on union matters, HR policies, workplace investigations, and affirmative action compliance. Her commercial litigation work spans business torts, unfair competition, and contract disputes, while her transactional practice includes drafting employment agreements, vendor contracts, and regulatory compliance strategies. Our recognition in the Chambers Spotlight Guide reflects the dedication and excellence of our entire team. Thank you to our clients, peers, and community for your continued trust and support. We look forward to continuing to serve you with excellence.