If your workers are paid on a 1099 in Massachusetts, you very likely still need workers comp, because the state treats most of them as employees no matter what the tax form says. Massachusetts uses one of the strictest worker tests in the country, and it starts by assuming everyone who works for you is an employee. Calling someone a contractor does not make them one here.
Who this is for: Massachusetts owners who pay people as 1099 contractors (independent contractors) and want to know whether they are actually on the hook for workers comp anyway.
The short version
- The default: Massachusetts presumes your workers are employees who must be covered.
- The test: a worker is a contractor only if all three parts are true (control, outside your usual work, own business).
- Paperwork does not win it: a 1099 or a signed agreement does not decide the question.
- General contractors beware: an uninsured sub's injured worker can become your claim.
- Getting it wrong is costly: back premium, fines, and benefits you did not plan for.
The three-part test, in plain English
To treat a worker as a real contractor (and skip covering them), Massachusetts requires you to prove all three of these. Miss any one, and the worker is your employee:
| Part | What it means | Where owners trip up |
|---|---|---|
| A. Free from control | You do not direct how or when they do the work | Setting hours, supervising, or providing tools looks like control |
| B. Outside your usual business | Their work is not the kind of work your business does | A roofer's roofing sub does the roofer's own core work, so this fails |
| C. Their own business | They genuinely run an independent business of that kind | A worker who only works for you, with no other clients, fails this |
Part B is where most owners lose. If the person is doing the core work your business sells, they are almost certainly an employee in Massachusetts. For the national picture, see do I need workers comp for 1099 contractors.
The general contractor trap
If you run jobs and hire subcontractors, there is a second risk. When you hire a subcontractor who does not carry their own workers comp, and one of that sub's workers is injured on your job, Massachusetts can require your policy to pay the claim and can treat you as the employer. That is why experienced general contractors never let a sub start without a current certificate of insurance (proof of coverage) on file. Collecting that certificate is the single best habit for protecting yourself.
A quick Massachusetts example
Illustrative, not a quote. A small roofing company in Brockton pays its three crew members on 1099s to save money, figuring they are contractors. One falls and breaks an ankle. Because roofing is the company's own core work and the crew work only for this company, all three fail the state test and are really employees. The company owes the workers comp claim, back premium for coverage it should have carried, and fines, far more than the policy would have cost. Trade detail is on our workers comp for roofers page.
Real questions Massachusetts owners ask
My workers are 1099. Do I still need workers comp in Massachusetts?
Probably yes. Massachusetts uses one of the strictest tests in the country, and it treats most people you pay as employees, not contractors. A 1099 form does not decide the question; the actual working relationship does.
How does Massachusetts decide if someone is really a contractor?
It uses a three-part test. A worker is presumed to be your employee unless you can show all three: they are free from your control, they do work outside your usual business, and they run their own independent business of that kind. Most workers fail at least one prong.
Can I just have everyone sign a contractor agreement?
A signed agreement does not settle it. Massachusetts looks at how the work really happens, not the paperwork. If the person functions as an employee, they are an employee for workers comp no matter what the contract says.
I'm a general contractor. What if my subcontractor has no workers comp?
That is a real risk in Massachusetts. If you hire an uninsured subcontractor and one of their workers gets hurt on your job, your policy can be required to pay that claim, and the state can treat you as the employer. Always collect proof of coverage from subs.
What should I collect from a subcontractor to protect myself?
Get a current certificate of insurance (proof of coverage) showing the sub carries their own workers comp before they start, and keep it on file. If a sub is a solo owner with no employees, ask for proof and understand you may still carry the exposure.
What happens if a 1099 worker gets reclassified as an employee?
You can owe back premium for the coverage you should have carried, plus fines, and the worker may be entitled to benefits. Misclassifying workers is treated seriously in Massachusetts and can also trigger wage-law penalties.
How do I know if I'm getting this wrong?
If your 1099 workers do the core work of your business, work mainly for you, use your tools or direction, or do not have their own separate business, they are likely employees. When in doubt, have us review the relationships before an audit or an injury does it for you.
Why Massachusetts owners choose Morrow
- We shop the whole Massachusetts market for you. Massachusetts has no state-run insurer, so coverage comes from private carriers, or, if no carrier will take you, from the state's backup option (officially the Massachusetts Workers' Compensation Assigned Risk Pool, run through WCRIBMA, the licensed bureau that administers that pool). We check both so you are not stuck with the first price you are handed.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Massachusetts guides
Every Massachusetts business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Massachusetts (start here)
- Massachusetts workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need MA coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost in Massachusetts?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do I need workers comp for 1099 contractors?
- What is a ghost workers comp policy?
- Workers comp for roofers
This guide is general information, not legal advice. Massachusetts rules and penalty amounts can change, so verify current requirements with the Massachusetts Department of Industrial Accidents or a licensed advisor before you rely on them. Last updated: July 2026.