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1099 Risk Blog
Contingent Workforce Management
July, 29 2010
The writing is certainly on the wall: as America emerges from the Great Recession into an uncertain economic recovery, things are going to be different in the "new normal." It's not that the economic recovery is a completely "jobless" recovery. It's more that work doesn't get packaged as jobs so much anymore. Work is being bundled into projects, and then services are being purchased from providers or services vendors. Some of those vendors are individuals hired as independent contractors or SOW consultants . . .
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July, 14 2010
As we settle in for an uncertain and lumpy economic recovery, everyone is looking for savings. And the word on the street is using contingent labor -- defined broadly to include staff augmentation, independent contractors, SOW consultants, and temporary workers -- saves businesses money. But conventional wisdom isn't always right. As Edward Deming once said, "In God We Trust, all others bring data." Staffing Industry Analysts just published their data benchmarks with the following statistics for annual savings attributed to the contingent workforce . . .
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July, 2 2010
This week's economic data confirms the trend toward a more flexible contingent workforce:
The United States workforce is in flux, and the work that used to be performed on a so-called "permanent" basis is increasingly being met with contract labor. According to MarketWatch, the initial unemployment claims for the week ending June 26th rose by 13,000, or nearly 3% from the previous week. At the same time, according to the latest BLS figures (reported by Staffing Industry Analysts), the US economy added 20,500 temporary jobs in June, for a total of 2.1 million jobs . . .
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June, 30 2010
Independent Contractor (IC) compliance is hot, and there are a lot of purportedly "expert" solutions springing up to help solve these issues. Any time there is a market opportunity new businesses pop up, hoping to cash in on the trend. But this is a complicated field, and one of the reasons people look for experts is that the issues are confusing, which makes it difficult to tell who is for real and who is a . . .
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June, 30 2010
If you think IRS reclassification is the only dimension of 1099 risk, think again. According to Garry Mathiason of the noted employment law firm Littler Mendelson*, there were 5,786 class action lawsuits for wage and hour violations filed in 2009, a 40% increase over the prior year and representing over 80% of all class actions. The cases include overtime, meal breaks and rest breaks, and minimum wage requirements. If you have misclassified workers as independent contractors instead of employees, then your risk exposure for wage and hour is undeniable . . .
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June, 9 2010
The impacts of the new healthcare laws on contingent workforce management will not be fully understood for some time. But some provisions of great concern are approaching rapidly, including a little understood 1099 reporting provision slated to take effect on January 1, 2012. Like the proposed Employee Misclassification Prevention Act (EMPA) bill, this new requirement would “pierce the corporate veil” hiding independent contractor vendors and require immediate discovery and control over challenging spend categories such as statement of work consultants and sub-contractors.
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March, 17 2010
MBO Partners recently confirmed that Jay Lash has been appointed VP of Market Strategies. Lash, formerly with Allegis Group Services, brings over 25 years of experience in contract talent management and contingent workforce solutions. Knowing that there has been a lot of buzz about Jay’s career move, we brought him in for an exclusive interview on our Contract Talent blog. I tried to ask him ten questions, but he's a busy man, and he drives a hard bargain. We settled on eight. . . .
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February, 3 2010
Monday's release of Obama's 2011 Budget has generated a flurry of excitement regarding an increase of $25 million for the Department of Labor (DOL) to go after worker misclassification in a joint effort with the Treasury. The efforts are expected to increase Treasury receipts by more than $7 billion over a ten year span. But the $25 million line item in the budget doesn't tell the whole story of what's intended for the future of worker classification enforcement in Obama's 2011 budget. Hey . . . what's this $8 billion for the IRS to target critical areas of non-compliance? And why isn't anyone excited about that?? Read on . . .
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January, 14 2010
Oklahoma state Senator Andrew Rice (D-Oklahoma City) has filed Senate Bill 1384 to stop employers from improperly misclassifying workers as independent contractors. The practice of worker misclassification is often an attempt on behalf of businesses to avoid payroll taxes and other costs such as benefits and/or worker's compensation insurance. If the bill passes, Oklahoma will join a host of other states already cracking down on the practice of improperly classifying workers as independent contractors . . .
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December, 23 2009
Most days I get bombarded with email invitations to talent management webcasts, promising to teach attendees, presumably HR talent managers, recruiters, and workforce planners, how to source and hire the world’s top talent. I just got another one that reads, “. . . a joint session to discuss what it takes to find and hire the best talent on the planet.” Ok, so we we’ll learn how to hire the best talent on the globe. Really? Beyond the obvious issues of hyperbole, my big objection is this: The best talent on the planet is not for hire. . .
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Recent NewsNew Study Details Strategies for Managing the Contingent Labor Umbrella, Including Independent Contractors
August 12, 2010 -- New research on contingent workforce management from Aberdeen highlights a new trend in independent contractor and SOW consultant management: a dramatic increase in the use of Independent Contractor Engagement Specialists (ICES) that help businesses reduce the risks of engaging independent contractors and other contract workers, including misclassification and co-employment risk.
Read the press release >
Visit the newsroom > New ResearchManazing the Complexities of the Contingent Labor Umbrella
This latest research from Aberdeen reports on the dramatic growth in the use of independent contractors, SOW consultants, and services spend, and gives insights on how Best-in-Class organizations are navigating the contingent labor landscape. This year, the report has an expanded scope to include new categories of spend in the contingent workforce, including project / services spend.
Download MBO White PaperMaximizing Talent, Minimizing Risk: Approaches for Compliant Independent Contractor Engagement
Conventional Contingent Workforce Management (CWM) approaches are weak when it comes to independent contractors. But recent innovations are being integrated into VMS/MSP programs with powerful results. This whitepaper shows how to focus on the root cause of independent contractor challenges, rather than symptoms, and reap significant risk mitigation.
Talk With Our ExpertsCall 1-800-220-0469, or complete this form. Our experts will be in touch promptly.
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