In March of 2014, we filed a class action lawsuit in federal court against The Boston Institute for Psychotherapy, Inc. (“BIP”) alleging that BIP failed to pay its employees in accordance with the Massachusetts Wage Act and that BIP misclassified its employees as “independent contractors” in violation of Massachusetts law.
The lawsuit alleged that BIP classified its psychotherapy clinicians, and other employees, as “independent contractors” to avoid expenses commonly associated with having employees, such as employment tax, health insurance, unemployment insurance, workers’ compensation and other employee benefits. The lawsuit also claimed that BIP, by classifying these employees as “independent contractors,” attempted to skirt the Massachusetts Wage Act by paying its employees once per month, which exceeds the permissible time frame allowed by law.
The lawsuit, filed in the United States District Court for the District of Massachusetts sought class certification on behalf of all current and former clinicians and other employees who were affected by BIP’s allegedly unlawful payroll practices.
This case resulted in a classwide settlement. The BIP closed its doors in 2016.