MBO Partners has proposed the Certified Self-Employed solution in direct response to this issue. The proposal creates a safe harbor for certain independent workers who wish to conduct their business responsibly and establish themselves as undisputed, self-employed, independent contractors via a special certification. The goal is simple; CSE helps to clear worker classification confusion related to where employer responsibilities begin and end. Certified Self-Employed workers would be responsible employers of themselves; this includes funding all Federal and local employer payroll taxes, health benefits,and worker compensation.
Current labor laws use a “one-size-fits-all” approach to classifying their workers, but with an independent workforce that boasts a diverse array of economic situations, it is simply not appropriate. One of the key motivating factors behind the CSE solution is to properly address these different audiences. The CSE allows independents to be freed from employee entitlements, removing the friction in the marketplace that impedes those independents that wish to have full control over both their business and how they engage clients. For those contractors who do not elect the CSE solution and are clearly independent and properly classified, there is no issue. On the other hand, for those contractors who do not elect the CSE solution and are too closely resembling employees and thus being potentially misclassified, current laws exist — and would remain in existence — to ensure employee protections are provided to those that believe they are entitled.