Misclassification & Compliance

consultant group

4 Ways to Minimize Worker Misclassification

By MBO Partners

Worker misclassification will always be an inherent risk when engaging independent contractors. Businesses today must decide how to handle differing worker classification laws from federal, state, and local government agencies. Because laws and regulations that dictate worker classification and use of independent contractors are ambiguous and frequently change, legal compliance is challenging. That said, companies…

Read More...
direct sourcing

5 Ways to Lower Worker Misclassification Audit Risk

By MBO Partners

Independent contractor misclassification can be an expensive mistake—here’s what you need to know to avoid it.

Read More...
compliance

Contractor Misclassification: Schwann vs FedEx

By MBO Partners

The methods that federal and state agencies use to determine whether a worker is an independent contractor vs an employee are quite complex. In the 2013 case of Schwann et. al. v. FedEx, under Massachusetts law, FedEx had virtually no chance of proving that the drivers were not employees. How does the federal government determine…

Read More...
misclassification and compliance news

Independent Contractor Misclassification and Compliance News June 2022

By Nathan Gibson

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. United States Supreme Court says Arbitration Agreements…

Read More...
consultant management

3 Challenges to Creating a Successful Contingent Workforce Management Program

By MBO Partners

Creating a successful program to manage contingent workers has many benefits but also three distinct challenges. While more experienced workers become independent, companies are increasingly recognizing the many benefits independent talent provide and are incorporating this talent into their workforce strategy. This external workforce is important to many organizations because it allows them to operate…

Read More...
consultants working

Independent Contractor Classification: How to Stay Compliant

By MBO Partners

Updating policies and practices to compliantly engage independent contractors is a major shift many large organizations are going through. Worker misclassification is a serious issue—if a company classifies a worker as an independent contractor when they should really be classified as an employee in the eyes of the law, they are liable for fines, penalties,…

Read More...
consultant older

What is Co-Employment: 4 Ways to Avoid Co-Employment Risk

By MBO Partners

Co-employment is an arrangement where two companies both have rights and obligations as an employer. Learn the complex risks and benefits of co-employment and best practices independent contractor engagement.

Read More...
consultants working

3 Risk Management Strategies for Contractor Engagement

By MBO Partners

Worker misclassification  is important to keep in mind if your business is currently using or considering using independent contractors. Managing contingent workers is quite different from 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…

Read More...
consultant working

4 Ways to Reduce Worker Misclassification Risk

By MBO Partners

Worker misclassification is a complex topic. It does not always have a straightforward solution. Often, misclassification can be unintentional because businesses simply do not have a full understanding of the laws regarding how to classify their workers. However, it can also be done intentionally to reduce labor costs or avoid payroll taxes. Regardless of why…

Read More...
consultants

Recruiting Contractors vs Employees: What’s the Difference?

By MBO Partners

Independent contractors and employees are two very different pools of talent. That means there are big differences when it comes to recruiting each type of talent. In order to successfully attract, retain, and re-engage independent workers, it’s important to focus on building a recruiting strategy that is specifically designed to meet the needs of these…

Read More...