Independent Contractor Classification: How Certification May Help Reduce Compliance Risk

By MBO Partners | May 4, 2016

Share
consultants working in office img (2)

The growth and innovation of the American workplace has outpaced the evolution of laws and rules. A modern solution is very necessary to (re)stimulate this innovation. With this in mind, this week, we released a proposal, the Certified Self-Employed (CSE) solution, to modify how the U.S. government classifies and regulates independent workers.

The growth and innovation of the American workplace has outpaced the evolution of laws and rules. With issues ranging from independent contractor compliance to guaranteed worker protections, a modern solution is very necessary to (re)stimulate this innovation. MBO has released a certification solution to modify how the U.S. government classifies and regulates independent workers: Certified Self-Employed (CSE). CSE addresses the aforementioned issues, removing the risk associated with hiring independent talent.

Simply put, CSE creates a risk-free exchange of independent labor, removing any potential friction that would deter clients from utilizing independent contractors.

A balance must be struck whereby these independents are not taken advantage of by their clients, yet can also pursue their work and engage with clients in an effective, misclassification-free manner, while funding their own safety-net and taxes.

The proposed solution creates a worker designation that allows American independents to have greater control over both their opportunities for work as well as the freedom to run their own business. It removes the ambiguity of worker classification risks and costs that they may currently encounter with potential clients.

This proposal is unlike many others, especially because it’s realistic: unlike previous proposals to manage the booming gig economy, this solution requires minimal regulatory intervention once the certification standards are created.

Read the full proposal:

Certified Self-Employed: A New Vision for America’s Independent Workforce

Feel free to email us your thoughts.

Related Posts

Decouple Innovation and the Workforce with Open Innovation 

Innovation is requisite for successful competition. But even as enterprises recognize the need to innovate to stay relevant in continuously evolving markets, their intellectual capital is in danger of draining away due to factors like these:  Layoffs. Over 3,150 US companies announced layoffs in 2022. As of the first quarter of 2023, over 972 firms…

Read More...

Tap Independent Executive Expertise through Direct Sourcing

Not long ago, the term “freelance executive,” if heard of at all, was an oxymoron. While there have been interim and fractional CXOs in the marketplace for a long time, this talent takes temporary full-time or part-time roles to fill or backfill openings at the C-suite table. But the idea of a freelance executive? It’s…

Read More...

Hiring Soft Skills for Future Success: Critical Thinking

This is the second in a five-part series discussing skills critical for future success.  Succeeding articles will cover creativity, communication, and entrepreneurship. A recalibration is taking place in the workforce as leaders are moving to skills-based organizations and artificial intelligence (AI) is slowly taking on some roles, either completely or as an adjunct to human…

Read More...

Trending

Tags

Learn more about the MBO Platform

FOR INDEPENDENT
PROFESSIONALS

Start, run, and grow

your independent business with MBO

FOR
ENTERPRISES

Engage, scale, and optimize

your independent workforce