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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Insights

A Mid-Year Review

As we settle into the latter half of 2020, a key question emerges: how do I enable my workforce to grow and thrive? The answers are many, but one clear fact has emerged: independent talent is an important and vital part of a businesses' ongoing success. 

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.

Research

Client of Choice

The 2020 Client of Choice research report offers insight into what top independent professionals value when choosing their clients. The data indicates that the 7.6 million Americans serving businesses have more choice and greater satisfaction than ever before. 

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

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3 Risk Management Strategies for Contractor Engagement

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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What is Worker Misclassification?

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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What California’s AB2257 Means for Independent Contractors

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…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: September, 2020

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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5 Risks of Hiring Independent Contractors

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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15 Best Practices for Classifying Workers and Avoiding an Audit

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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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Background Checks for Independent Contractors in the Wake of COVID-19: 4 Areas to Consider Moving Forward

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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…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: August, 2020

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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Should I Hire a Contractor or Employee? 6 Questions to Ask

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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3 Ways to Mitigate Compliance Risk When Hiring Independent Contractors

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 of this independent talent soon. But read…

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Four Ways to Minimize Worker Misclassification

When engaging independent contractors, worker misclassification is an inherent risk. 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 must also…

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3 Levels of Contractor Compliance

On-demand talent bring a competitive advantage, reduced cost, and unique skills to the market. Independent professionals are an economic force that is continuing to grow and thrive, and many enterprises are reaping the rewards. There are currently nearly 41 million people working independently in the U.S. and we predict that this number will only continue…

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10 Strategies to Reduce Contractor Compliance Risk

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Understanding how to properly engage and manage independent contractors is critical for the modern business. If you suspect that your company’s independent contractor engagement practices heighten your risk profile, it’s important to make sure you have a good understanding of what today’s most forward-looking enterprises are doing to reduce their compliance risk. 10 Compliance Strategies to…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: July, 2020

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. Courts in Massachusetts and New Jersey Both…

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When is an Independent Contractor an Employee?

Today, organizations have many different approaches to building their workforce. Traditionally, businesses relied on a base of full-time employees, perhaps supplemented by temporary workers to fill seasonal or short-term needs. In recent years, however, companies are increasingly incorporating independent contractors into their talent strategies. And no wonder—independent professionals bring substantial financial benefits, access to in-demand…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: June, 2020

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 Focuses on Drivers Misclassified as Independent…

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How to Avoid Independent Contractor Reclassification

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

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3 Challenges of Creating a Successful Workforce Management Program

A growing career choice for 41 million Americans is on the rise: self-employment. Companies are also 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 at full capacity and meet market demand. If…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: May, 2020

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. Pennsylvania Supreme Court Clarifies the Definition of…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: April, 2020

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. CARES Act Provides Benefits to the Independent…

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Independent Contractor Classification: How to Stay Compliant

As organizations incorporate more independent contractors as a part of their workforce, it is important to also adjust policies and practices to ensure all contractors are engaged compliantly. 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…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: March, 2020

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. Independent Contractors May be Eligible for Collect…

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How to Avoid an Misclassification Audit

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

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: February, 2020

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. Preliminary Injunction Issued to Block Enforcement of…

misclassification and compliance news

Independent Contractor Misclassification and Compliance News: January, 2020

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. AB5 Takes Effect In 2019, California passed…

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5 Things You Need to Know about IR35

IR35 refers to a set of UK legislation designed to combat tax avoidance by independent contractors and the businesses that engage them. This shifts the responsibility of worker classification, as well as the associated risks, to the businesses. Despite widespread negative industry feedback, IR35 changes will go into effect in the Private Sector in April…

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Independent Contractor Compliance Trends in 2020

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. As we look ahead to 2020, worker misclassification and compliance are topics that will remain in the news as new laws…

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What Causes Independent Contractor Engagement Risk?

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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.

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Top Independent Contractor Compliance Stories from 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. 2019 was a fascinating year for independent contractor compliance. Here’s a look at five of the top stories. 1. AB 5…

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Independent Contractor vs Employee: 10 Differences

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

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Independent Contractor Misclassification and Compliance News: November, 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. Illinois’ Human Rights Act Protects Independent Contractors…

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Why Does the IRS Care About Worker Classification?

Contingent workers are a growing and increasingly prominent part of our workforce today. As more people choose independent work as a career path, the issue of worker misclassification is growing as well. 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…

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How to Reduce the Risk of Worker Misclassification

Worker misclassification is a complex topic that does not 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, but it can also be done intentionally to reduce labor costs or avoid payroll taxes. Regardless of why misclassification…

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Recruiting Contractors vs Recruiting Employees

The independent workforce is a different pool of talent than traditional employees. In order to successfully attract, retain, and re-engage independent workers, companies must focus on building a recruiting strategy that is specifically designed to meet the needs of this group of talent. How Independent Contractors Work ‘Independent contractor’ is a legal term for workers…

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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 Independent Talent Luckily,…

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Independent Contractor Misclassification and Compliance News: October, 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. California Bans Mandatory Employment Arbitration Agreements The…

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What is Co Employment and How to Avoid Co Employment Risk

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.

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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…

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When Can I Classify a Worker as an Independent Contractor?

The modern workforce is composed of a variety of workers including full-time employees, temporary workers who may fill seasonal or short-term needs, and contingent workers such as freelancers, independent contractors, or consultants. This diversity of workers gives businesses many benefits including workforce flexibility, access to certain skills on-demand, and the ability to form ready-made teams…

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The Cost of Worker Misclassification: Independent Contractors

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 is…

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Pros and Cons of Hiring a 1099 vs W2 Employee

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

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Independent Contractor Misclassification and Compliance News: September, 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. California Adopts the ABC Test for Classifying…

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5 Employee Misclassification Penalties to Avoid

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

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Contingent Workforce Compliance: What Companies Should Know

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

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Independent Contractor Misclassification and Compliance News: August, 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. New Jersey Wage Theft Act New Jersey…

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3 Business Benefits of a Contractor Compliance Program

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.

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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.

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4 Strategies to Reduce Misclassification Risk

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 gap continues to grow—45% of…

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Independent Contractor Misclassification and Compliance News: July, 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. California Bill to Address Dynamex Moves Forward…

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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…

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Why Misclassification Risk 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…

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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…

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The Impact of Employee Misclassification on Your Business

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…

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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…

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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…

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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…

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Independent Contractor Misclassification and Compliance News: January, 2019

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

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Why Worker Classification is Important to Independent Professionals

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

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Top Independent Contractor Compliance Stories from 2018

Independent contractor compliance: the top five stories from 2018.

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Independent Contractor Misclassification and Compliance News: November, 2018

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

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5 Ways Enteprises Can Prepare for IR35

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…

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Independent Contractor Misclassification and Compliance News: October, 2018

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

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Independent Contractor Misclassification and Compliance News: September, 2018

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

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9 Signs of Increased Employee Misclassification Risk

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

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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…

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Independent Contractor Tests and Guidelines: DOL, IRS, State

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…

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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…

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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…

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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…

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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…

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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…

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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…

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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…

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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…

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Calculate Your Worker Misclassification Risk

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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…

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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…