An Act encouraging the growth of small businesses

This bill establishes a new legal chapter to define "bona fide" business entities, which are independent contractors rather than employees. To qualify for this status, a business must be registered with the state, report its income and employee taxes correctly, and comply with all labor and employment laws. If these conditions are met, the businesses and their workers will be exempt from certain employee classifications under state tax and labor codes. The legislation directly affects small businesses and independent contractors operating in Massachusetts.