Navigating Employment Law in the Gig Economy

Confusion over when to classify workers as employers vs.
independent contractors has only grown since the increase in popularity with the
gig economy and technology. Most of these laws are based on workers having an “employee”
status, while independent contractors have yet to gain protection under most
federal or state laws. There are some issues when interacting with gig workers,
but we have some tips for just that:

Make the Determination

Distinguish independent contractors from
employees just as you usually do. If you’re looking for someone to perform core
functions, it may not be a good idea to bring in a short-term asset to the team.
It is best to bring in contracts for individual projects. The greater the similarity
between what your employees and your gig workers do, the greater your risk of
blurring the lines. You have to consider the tasks and who would be the best
fit in each situation.

Apply the Most Stringent Definitions

When classifying gig workers, apply the
most stringent employee and independent contractor definitions applicable.

Create Distance

The more you insert yourself into their
work life, i.e.; handbook, supervision, performance reviews, the more it appears
you are an employer. You must create distance between yourself and them. 

Prepare for an Uncertain Future

Experts are pushing for a third-employment
category that entitles gig workers to certain workplace rights while retaining
flexibility embodied in the independent contractor relationship for both
parties. As of now, it isn’t clear who would set the standard for the different
work categories.    

Here at Converge HR Solutions, we have the resources
and expertise to aid your company in distinguishing employees vs. contractors. We
can help with all your needs, whether it be long-term or short-term needs. If
you would like to learn more about us please visit You can
also email us directly at
or give us a call at 610-296-8550.

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