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Misclassification and Compliance
Minimize the risk of worker misclassification by understanding these three important components of independent contractor compliance.
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Whether your business is currently using or considering using independent talent, it is important to keep compliance in mind. Properly managing independent contractors is quite different than maintaining a workforce of traditional employees—specific rules, laws, and tests apply. Treating an independent contractor as an employee can result in costly legal consequences. Knowing how to reduce…
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Organizations are increasingly incorporating independent professional talent into their workforce, more high-profile lawsuits have been in the news—throwing the issue of worker misclassification into the spotlight. But what is worker misclassification exactly? First, it’s important to understand that independent contractors—freelancers, consultants, self-employed professionals, side-giggers, etc.—represent a fundamentally different type of worker than your typical W-2…
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California recently enacted AB2257, a statute to amend AB5, a law that was effective January 1, 2020 and made the ABC test the principal test for determining if a worker in California was an employee or independent contractor. The ABC test requires a business/hiring entity that wants to engage with a person who is an…
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As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. California Passes AB2257 to Amend AB5 California…
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Independent contractors are not only a valuable source of talent for businesses, but the growth of the independent workforce also made it easier for businesses to compliantly engage independent workers with minimal risk. Despite these positive changes, navigating how to properly engage this pool of talent can be confusing given evolving laws and lack of…
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Worker misclassification may often seem like a far-off concept—something that only happens to very large companies that you read about in the news. After all, does the government really care about the details of how a small business engages freelance writers for website copy? The truth is, because audits are private, you only hear about…
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When we consider the multitude of complications that were anticipated as a result of the COVID pandemic, few professionals would have called out the challenges of conducting background checks as a limiting factor. In fact, the inability to conduct such checks in a timely manner has become a critical chokepoint in bringing on new independent…
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As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. California vs. Uber and Lyft One of…
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From significant financial savings and staffing flexibility, to access to specialized skills and expertise, organizations can realize many benefits from engaging independent contractors. Independent talent can be a great way to test out new services, lay the foundation for a new business unit, or implement a new technology system. But in order to avoid risk,…
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