Insights

Access a wide range of tips, research and tools designed to support the growth and innovation of the independent workforce and enterprises who engage independent professionals.

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RESEARCH

Client of Choice

The 2019 Client of Choice research report offers insight into what top independent professionals value when choosing their clients.

Research

State of Independence

The State of Independence in America report is the longest-running comprehensive look at the independent workforce. Now in its 9th year, the 2019 survey finds full-time independents are a persistent, confident, and tech-savvy core of the independent workforce.

advocacy

Certified Self-Employed

Innovation within the American workplace has outpaced the evolution of laws and rules, creating regulatory gaps on issues ranging from independent contractor compliance to guaranteed worker protections. MBO has proposed a modern solution—the Certified Self-Employed worker (CSE)—to address these issues and remove the risks associated with hiring independent talent.

Research

Future of Work

In today’s project-driven economy, more businesses than ever are engaging an external workforce to help operate at full capacity and meet demand, positioning independent professionals to continue to be a critical resource for years to come.

CATEGORIES

TOPIC

Should I Hire an Independent Contractor or Employee? 6 Questions to Ask

Organizations can realize many benefits from engaging independent contractors including significant financial savings, access to specialized skills and expertise, and staffing flexibility. 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. In order to avoid risk, ensure a…

3 Ways to Mitigate the Risk of Non-Compliance with Independent Contractors

The independent workforce is here to stay. More than 41 million Americans are currently working independently on a full- or part-time basis and we predict that by 2027, more than half of the workforce will be, or will have worked independently. This means that if you aren’t doing so already, you’ll likely be engaging some…

3 Best Practices to Avoid and Prevent Independent Contractor Reclassification

Follow these best practices for managing your independent contractor workforce to avoid costly reclassification issues.

Four Ways to Minimize Worker Misclassification

Worker misclassification is 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. At the same time, companies…

Independent Contractor Misclassification and Compliance News: June, 2019

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. National Labor Relations Board Finds Arbitration Agreement…

Why the Risk of Misclassification Can’t Be Ignored

As the 41-million-strong independent workforce continues to grow, so does the issue of employee misclassification. The IRS estimates that millions of workers have been misclassified, and according to state-level studies, 10-20% of employers misclassify at least one worker as an independent contractor. While some misclassification is unintentional due to lack of understanding about laws regarding worker classification, sometimes it…

What is Worker Misclassification?

As more companies begin to incorporate 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…

When Creating an Independent Contractor Compliance Program is Important

Organizations are increasingly recognizing the competitive advantage, reduced cost, and unique skills on-demand talent bring to the market. Independent professionals are an economic force that will continue to grow and thrive. There are currently nearly 42 million people working independently in the U.S. and we predict that this number will only continue to grow. Along…

Independent Contractor Misclassification and Compliance News: May, 2019

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. The NLRB and DOL Released Documents Saying Gig…

The Cost of Worker Misclassification

As more companies begin to integrate independent professional talent into their fulltime workforce, the risk of worker misclassification increases. Whether your business has been engaging independent contractors for years or is just beginning use independent talent, it is increasingly important to put measures in place to help correctly classify talent as either traditional employees—recipients of…

Independent Contractor Misclassification and Compliance News: April, 2019

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. Texas Says App-Based Gig Workers Are Not…

Why Attracting Independent Talent is Different Than Recruiting Employees

The independent workforce represents a very different pool of talent than traditional employees. In order to successfully attract, retain, and re-engage independent contractors, it is important for companies to build a recruiting strategy that is specifically designed to meet the needs of this talent. What Makes Independent Contractors Different? First, it is important to understand…

Independent Contractors vs. Employees: 10 Differences You Need to Know

Employee misclassification can be detrimental to your business. Here are 10 main differences between independent contractors and employees that you should know about.

Employee vs. Contractor: Worker Classification and the IRS

As the 42-million-strong independent workforce continues to grow, so does the issue of employee misclassification. The IRS estimates that millions of workers have been misclassified, and according to state-level studies, 10% to 20% of employers misclassify at least one worker as an independent contractor. While some misclassification is unintentional due to lack of understanding about laws regarding worker classification, sometimes…

Independent Contractor Misclassification and Compliance News: March, 2019

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. Highly Skilled Consultants are Independent Contractors The…

How to Remove the Barriers of Independent Contractor Compliance

Self-employment is not only a growing career choice for 42 million Americans, but companies on the whole are also increasingly recognizing the many benefits independent professionals provide and are incorporating this talent into their workforce strategy—65% of senior executives say their external workforce is essential for operating at full capacity and meeting demand. If your…

Hiring Independent Contractors: 5 Common Concerns and How to Overcome Them

It’s not uncommon to experience some nervousness when engaging an independent professional for the first time. Whether you have fears about the quality of the final product, what it’ll cost, or productive use of time and resources, it can be hard to trust someone you’ve never worked with before. The Benefits of Hiring Independent Contractors…

5 Risks of Hiring Independent Contractors

Over the next five years, we predict that 58% of the U.S. workforce will be independent, or will have worked independently. This growing trend of independent work is not only a valuable source of talent for businesses, but its proliferation has also made it easier for businesses to compliantly engage independent workers with minimal risk. Despite these positive changes,…

Independent Contractor Misclassification and Compliance News: February, 2019

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. National Labor Relations Board Returns to Old…

Three Things You Might Not Know About Independent Contractor Compliance

Minimize the risk of worker misclassification by understanding these three important components of independent contractor compliance.

How to Avoid an Independent Contractor Misclassification Audit

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

Independent Contractor Misclassification and Compliance News: January, 2019

A monthly summary of independent contractor misclassification and compliance news. This is the January, 2019 edition.

Four Things You Should Know About Compliance for the Independent Workforce

Remain both legally compliant and competitive among peers by understanding how to properly work with independent contractors.

Independent Contractor Engagement Risk: What You Need to Know

Realize the competitive advantage of making independent talent part of your workforce strategy by creating a compliance program that manages legal risk and brings top talent to your doorstep.

What is Co-Employment?

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.

Why Worker Classification is Important to Independent Professionals

The cost of employee misclassification on independent contractors and what organizations can do to minimize risk.

Independent Contractor Compliance: Three Benefits to Creating a Program for Your Organization

Compliance programs minimize an organization’s exposure to misclassification liability when engaging independent contractors. Learn three key benefits a compliance program can offer your organization.

Top Independent Contractor Compliance Stories from 2018

Independent contractor compliance: the top five stories from 2018.

What Does Independent Contractor Compliance Mean?

When engaging independent contractors, businesses must abide by laws and regulations specific to these workers. Learn the importance of independent contractor compliance, and how to minimize risk for your company.

4 Engagement Strategies that Reduce Misclassification Risk

The Benefits of Using Independent Professionals As traditional employment changes and independent work becomes part of the normal career portfolio, organizations will look for ways to incorporate independent professional talent into their overall workforce strategy. Independents have a lot to offer, and with the right engagement program, they can help an organization thrive. The U.S. skills…

Independent Contractor Misclassification and Compliance News: November, 2018

A monthly summary of independent contractor misclassification and compliance news. This is the November, 2018 edition.

The Impact of IR35 on UK Independent Contractors: 5 Ways Your Enterprise Can Begin to Prepare

IR35 is tax legislation in the United Kingdom aimed at classifying the tax status of self-employed professionals who work for public or private sector companies. The legislation is designed to combat independent contractor tax avoidance, and since its introduction to the public sector last year, it has been met with negative press and public confusion. In…

Independent Contractor Engagement: How to Overcome Compliance Risk

Independent contractor compliance is important to be aware of whether your business is currently using or considering using independent talent. Properly managing independent contractors is quite different than maintaining a workforce of traditional employees—specific rules, laws, and tests apply, and treating an independent contractor as an employee can result in costly legal consequences. Knowing how to reduce…

Independent Contractor Misclassification and Compliance News: October, 2018

A monthly summary of independent contractor misclassification and compliance news. This is the October, 2018 edition.

Independent Contractor Misclassification and Compliance News: September, 2018

A monthly summary of independent contractor misclassification and compliance news. This is the September, 2018 edition.

Independent Contractor Misclassification and Compliance News: August, 2018

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 Legislature Will Not Address Dynamex This…

Worker Classification Tests and Guidelines

Questions and concerns around employee misclassification continue to grow as the independent workforce rises in number. Misclassification can lead to decreased tax collection revenue, loss of employee entitlements such as minimum wage and overtime pay, and class action lawsuits from unhappy workers. Dozens of federal- and state-level tests exist to help businesses determine whether or not…

5 Consequences of Independent Contractor Misclassification

Worker misclassification can result in fines, penalties, lawsuits, and reputation damage. Here’s what you need to know about misclassification and compliance.

Independent Contractor Misclassification and Compliance News: July, 2018

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. NY Appellate Court Says Postmates Courier is…

Independent Contractor Misclassification and Compliance News: June, 2018

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. Massachusetts Attorney General Leads Coalition of State…

Independent Contractor Misclassification and Compliance News: May, 2018

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 Supreme Court Replaces Legacy Worker Classification…

Independent Contractor Misclassification and Compliance News: April, 2018

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. Client of Staffing Firm Entitled as Third-Party…

Independent Contractor Misclassification and Compliance News: March, 2018

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. Court Finds Grubhub Driver Was an Independent…

1099 Contractors vs W2 Employees: 3 Key Differences to Consider when Classifying Workers

The differences between 1099 and W-2 tax forms, and considerations to take into account when making hiring decisions for your organization.

Top Independent Contractor Compliance Stories from 2017

Worker classification is a constantly evolving realm with various laws, tests, and guidelinesthat are often open to interpretation and subject to varying levels of enforcement from state to state. 2017 was a fascinating year for independent contractor compliance with lawsuits, memos, and new acts taking place across the U.S. Here’s a look at the top 7…

How Misclassification Impacts Independent Contractors and How to Avoid It

As the 42-million-strong independent workforce continues to grow, so does the issue of employee misclassification. The IRS estimates that millions of workers have been misclassified, and according to state-level studies, 10% to 20% of employers misclassify at least one worker as an independent contractor. While some misclassification is unintentional due to lack of understanding about laws regarding worker classification, sometimes…

Court Rules on Misclassification Lawsuit: Addison Lee Drivers Are Not Self Employed

In 2017, another high-profile misclassification case became a hot topic among UK press, reinforcing that daily operational oversight of work often outweigh the contracts put in place when it comes to classifying independent contractors. The Case Taxi firm Addison Lee was dealt yet another financial blow in September when it found itself the center of a self-employment…

The Criminal Finances Act 2017: What UK Enterprises Engaging Independent Professionals Need to Know Now

Of late, MBO Partners enterprises with UK clients have been asking many questions about the new Criminal Finances Act 2017, which takes effect on September 30th of this year. In an effort to clarify questions, MBO Partners has taken this opportunity to offer some background on the CFA, as well as to answer commonly-asked questions about…

4 Steps to Take in a Worker Classification Audit

Even if you’ve done everything you can to minimize the risk of a misclassification audit, you may find yourself with an IRS audit letter. So, now what? Because audits can result in large fines, negative press, back-tax payments, and even class-action lawsuits, the prospect of going through one can be scary. But with the right knowledge…

Calculate Your Worker Misclassification Risk

Why a Risk Assessment is Important Discussion of independent contractor misclassification seems to be everywhere nowadays. And while most now acknowledge that threat of reclassification is real and growing, most businesses don’t know how to quantify this risk. This isn’t surprising. IC reclassification penalties are highly variable and may rise and fall at the discretion of…

How to Deal with and Avoid an Employee Misclassification Audit

Are You at Risk for a Misclassification Audit? Independent contractor misclassification may seem like a far-off idea—something that only happens to very large companies, like FedEx or Citigroup. 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…

10 Strategies for Compliance Risk Management

Understand Your Compliance Risk As businesses move into the project economy, proper use of independent contractors is critical. If you suspect that your business may be using independent contractor engagement practices that heighten your risk profile, you need to arm yourself with an understanding of what today’s most forward-looking companies are doing to reduce their independent…

10 Compliance Issues that Increase Employee Misclassification Risk

Is your company aware of the risks that independent contractor misclassification can pose? Find out what exactly they are and how to avoid them.

IRS Independent Contractor Test: A Recent Massachusetts Example

The standards for determining whether an individual is an employee or an independent contractor differ between Federal agencies, such as the Department of Labor and the IRS, and also in numerous states pursuant to their laws. The various federal agencies and states each have different reasons for the determination. The IRS is concerned that businesses…