Employee or Independent Contractor?

The False Bogeyman Of The Gig Economy

Gig economy with woman in chair

From Forbes, Ike Brannon discusses the flaws of California’s law that makes it difficult to classify a worker as an independent contractor and argues for one national standard. Ike writes:

A Single Standard

The U.S. Department of Labor and the Internal Revenue Service have their own tests for determining who is and who is not an independent contractor. These tests have been modified a couple times over the last few years and may soon be adapted again to reflect the changing economy. It would make sense for the U.S. economy for the DOL to revamp them once more and create a single, nationwide test for who is an independent contractor rather than asking businesses to navigate around dozens of arbitrarily different standards.

A national standard that clearly delineated the difference between an independent contractor and an employee, and created a safe harbor that could be easily satisfied by people who want to be considered independent contractors, would provide certainty to independent contractors and the companies that hire them. Ending the uncertainty in the contingent labor market would boost employment and economic growth at a time we desperately need both.

Read the full story at  The False Bogeyman Of The Gig Economy

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