There is a very important legal distinction between and "employee" and an "independent contractor" or consultant. Massachusetts has recently begun enforcing a stricter definition of "independent contractor," and the federal government is following suit.
The new definition makes it harder for businesses to claim someone working for them is an independent contractor. Businesses run the risk the state will declare that the contractor is actually an employee and that the business is subject to all the taxes, liability, and wage & hour requirements.
The Chamber is concerned that companies will no longer have the flexibility they need to compete and that many local consulting firms will find it harder to do business in this state.