CASE STUDY: Fortune 500 Retail Company Reinvents Their Contingent Labor Compliance Program

By MBO Partners | March 11, 2021

MBO red logo


Vertical: Specialty Industries | Type: Misclassification and Compliance Compliance, at its core, takes many forms—preventing harassment and discrimination, safeguarding sensitive data, and ensuring workplace safety, just to name a few. When an enterprise engages independent talent such as freelancers, consultants, or contractors, they must abide by compliance regulations specific to these types of workers. To put it simply, different rules apply to independent contractors, because by law independent contractors are a different category of worker than your typical, W-2 employee.

The Importance of Worker Classification

Properly classifying workers is incredibly important. If a company misclassifies an employee as an independent contractor, it can result in costly legal consequences, audits, fines, penalties, and lawsuits—not to mention, reputation damage. Building a comprehensive compliance program that takes into account individual worker qualifications, current laws and regulations, and proper worker management is one of the best ways to minimize exposure to misclassification liability. A compliance program can help give enterprises peace of mind, provide legal protections, and make the company an attractive place for independent contractors to work. Of course, navigating all of the laws surrounding independent contractor classification is quite a complex process. That’s why many organizations choose to work with a firm that specializes in independent contractor engagement to help them properly assess their existing contingent workforce to ensure workers are compliantly engaged, paid, and managed.

A Fortune 500 Retail Company Takes a Close Look at Compliance Practices

A Fortune 500 retail company was struggling with contingent labor compliance. They were beginning to see heightened awareness around worker misclassification at a federal level and wanted to take a closer look at their own classification practices. MBO discovered that the majority of their existing freelance workforce did not meet the standard level of self-employability to qualify for work as 1099 independent contractors. This put the organization at risk for worker misclassification. The company quickly realized that they needed a stricter background check system and a way to compliantly engage a diverse population of freelance workers.

What We Did:

  • Developed a variety of engagement programs to fit the diverse needs of the company’s independent contractor population
  • Increased cost visibility
  • Mitigated misclassification risk by allowing independent contractor talent to work the way they want

View the case study to learn more about how the company doubled program spend and achieved total risk mitigation with MBO’s management. You can also contact our team of experts today, or view our case study library to see more success stories.

Related Posts

people talking at desk in office

CASE STUDY: A Big 4 Consulting Firm Disintermediates the Traditional Staffing Supply Chain

CASE STUDY Vertical: Professional Services | Type: Direct Sourcing The modern workforce of many enterprises is composed of a mix of full-time, temporary, and contingent labor. In particular, independent contractors offer organizations highly-skilled expertise and the flexibility to grow and shrink their workforce as project needs arise. Most companies that engage independent contractors understand the…

consultants working on laptop

CASE STUDY: A Global Management and Information Technology Consulting Firm Streamlines Independent Contractor Engagement

CASE STUDY Vertical: Professional Services | Type: Workforce Management Managing various groups of independent professionals in a streamlined, compliant manner is a difficult thing for enterprises to do without the right infrastructure in place. While the rise of new collaboration technology makes it easier for companies to expand their national or global presence for less…

MBO red logo

CASE STUDY: Big 4 Consulting Firm Updates their Approach to Independent Contractor Compliance

CASE STUDY Vertical: Professional Services | Type: Misclassification and Compliance When enterprises engage independent contractor talent, they must take steps to comply with relevant laws, policies, and regulations in order to operate legally. Compliance means many things—from preventing harassment and discrimination, to safeguarding sensitive data and building a safe workplace. And, when it comes to…




Learn more about the MBO Platform


Start, run, and grow

your independent business with MBO


Engage, scale, and optimize

your independent workforce