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In the movie Miracle, Coach Herb Brooks transforms a ragtag group of individuals from rival schools into the unlikely winners of an Olympic gold medal. During tryouts, many of the United States’ top hockey players made a show of their fancy skating. While some of the would-be Olympians hoped to be superstars, Coach Herb Brooks had something less glamorous in mind. He was building a team and picked the players he felt could come together and perform as such. He knew he would be going up against teams that had been playing together for years. He wouldn’t be able to compete in most aspects of the game. So he started with the basics: conditioning and building a team-oriented mindset. 

We’ve seen the workplace evolve as employees disperse to their home offices and fancy devices and face-to-face interactions yield to app-based means of communication. While we can’t predict all of the ways the workplace will continue to change, we know it will. Like our young, scrappy team from the 1980’s that went back to the basics, there are a few tried and true fundamental workplace principles that remain no matter what the changes bring.  A cohesive team will always have a team culture and effective communication. 

Whenever we get a little sideways or start to feel the distance growing between team members, divisions, and workers with various statuses, we can always come back to the basics and work on the human side of our business and shore up our communication as well. 

We’ve collected some resources for cohesively knitting teams with different structures. 

Taking Care of People/Team-building 

7 Ways to Make Employees Feel Respected

The Best Managers Are “Connectors”

Is Your Hybrid Team Losing Steam?

When Great Minds Don’t Think Alike

Fixing a Self-Sabotaging Team

Communication

Three Elements of Great Communication, According to Aristotle 

4 Distractions That Derail Meetings–And How to Handle Them

How to Design an Agenda For an Effective Meeting

Storytelling That Moves People

An Antidote to Microaggressions? Microvalidations. 

Bottom Line 

You can weather a lot of storms well if your foundation is solid. For a well-functioning business, that foundation is going to be built on taking care of your people and effective communication. What are your tried and true principles/tactics you always come back to?

There’s more to the AI conversation than the alarmist “It’s coming for your jobs” headlines. Fair warning: I did include one of those here, but there’s so much more to the story. Read on for a little intro for everything from the basics (i.e. what is it?) to the ethical concerns and how it’s affecting jobs, healthcare, and more.

AI in The News: Our Top Ten Picks

1. Read this Washington Post article if you’re looking for an introduction to how AI works, the issues ethicists are wrestling with, and the companies leading the way in the recent AI boom.
2. Read this Technology Review article if you’re looking for some positive news about how AI can be used to defend against Cybersecurity concerns.
3. This Forbes article captures the alarmist “It’s Coming For Your Job” tone you’ve probably already seen. Be warned: it’s designed to make you feel a little unsettled about your future.
4. But this one, also from Forbes, addresses AI’s limitations in hiring.
5. This one, from the BBC, also approaches the topic with optimism, citing examples of people using the technology to advance their careers and creative processes.
6. This article addresses AI from an investment standpoint.
7. Read this one for news about “Apple’s Ambitions for AI.”
8. The post addresses how AI affects Photoshop/Adobe.
9. If you’re interested in how AI will affect healthcare, check out this post and this one.
10. Read this for a taste of how lawmakers are thinking about addressing the legal concerns that come with this evolving technology.

Hustle culture is losing its appeal with younger generations. But while they value the idea of having a work/life balance, they’re bad at it. Still, having a robust non-office life might counterintuitively benefit your work one. According to Mental Health America, “When workers are balanced and happy, they are more productive, take fewer sick days, and are more likely to stay in their jobs.” So whether your motivation is just to enjoy life more or to be better at your job, it’s worth fighting for your work/life balance.

Work/Life Balance is Harder Than Ever

Conference rooms, spontaneous conversations at the proverbial water cooler, and in-person meetings are simply not necessary for many work situations any more. With Slack, Zoom, and other digital communications taking over, much of our work is no longer tied to a physical location. That has some benefits. On the other hand, most of us no longer have the luxury of clocking out and leaving our work behind. That makes establishing a work/life balance incredibly difficult. How many times have you responded to a work request while putting your kids to bed or having lunch with a friend?

No longer having a forced separation between work and home means it’s a lot easier to ping someone with a random thought or question late at night or on the weekend when you aren’t risking waking their kids with at 9 PM phone call. Shooting off an email or a text at 9 PM is socially acceptable and reading work communications as you’re going to bed or first thing in the morning is often expected.

A “delayed” response of even 10 minutes can cause concern. Now, it almost seems like you literally have to go underground (on the subway) or take a flight to get a break from electronic communications. All our “time savers” eat away at more and more of our time.

Establish Work/Life Balance

It’s worth making balance a priority though. We all know the basics: Snooze Slack when you’re done for the day. Turn off your notifications. Take frequent breaks from the computer, etc.. But have you tried locking your phone in a safe? Sometimes that’s what it seems like it would take to get a true break.

The reality is you may not always be able to avoid working odd hours or catching up after a busy day home with sick kids. So if you must do work outside of regular hours, you can take some steps to respect your coworkers’ balance, too. Use your schedule send option. It’s the best! Instead of sending at 1 AM, schedule an email to send at 8 AM the next day. It’s a small, but worthwhile way to show respect for their time and prevent conditioning them to expect you to work at all hours.

Chances are, if you are so bold as to want a life outside of work, you’ll get a little pushback, but maybe not from where you expect. You’ll likely encounter the most resistance from yourself. Sure, there may be some unreasonable bosses, clients, and coworkers out there, but most understand that a work/life balance is NOT about being lazy or doing less than satisfactory work. It’s more about living in a way that positions you to give your best in every area. Consider what kind of life you want to have and whether your current situation reflects your values. If not, then you can read some of the (many) articles about how to establish a work/life balance.

The Bottom Line

With the current level of access, it takes discipline to have boundaries. Fight for your work/life balance and respect others’ boundaries, too. Everything will be better for it, including your work.

For companies that hire a lot of freelancers, an Employer of Record (EOR) can be a lifesaver—or at least save some headaches if not literal lives. A partner for handling hiring temporary workers can be a key to avoiding fines and court dates by keeping businesses out of trouble. An employer of record is defined as “a company or organization that is legally responsible for paying employees, including dealing with employee taxes, benefits, insurance, etc.”

As such, an EOR deals with the administrative problems and mountains of paperwork that come with hiring, paying, and insuring workers. Outsourcing parts of business that require extremely-specialized skills and those that deal with risk and compliance can be a very wise business move. These issues have very high stakes and a partner is required when devoting the time and resources toward doing the job right simply isn’t feasible. Keeping your workforce happy and paid on time/with accuracy is also crucial to maintaining a happy workforce. In addition, the laws are always changing and audits, fines, and penalties follow when airtight systems and processes are not in place. An EOR keeps everything running as it should and serves as the employer. As such, it takes on many of the related responsibilities and liabilities while employees work for another company.

Would an EOR Benefit Your Business?

1. Does hiring new workers slow you down when you’re trying to accomplish a goal or staff an event?
2. Do you have a lot of freelance hiring needs on tight deadlines?
3. Does freelance payroll management cause your team headaches?
4. Would maintaining current headcount when engaging freelancers save you trouble?
5. Do you have compliance concerns?
6. Does your staff need refreshers on workers’ comp and necessary insurance for contractors every time you hire freelancers?

If you answered yes to any of the above questions, you might consider whether an EOR would help you. In addition to easing the above concerns, an EOR turns a mountain of hiring paperwork into a molehill and handles certificates of insurance, I-9s, and E-verify forms. They also terminate employees when necessary, administer benefits, and conduct background checks and drug screenings.

Bottom Line

Not every company needs an EOR, but for those who do, it’s a game changer. We find clients benefit greatly from partnering with an EOR when they need help onboarding or don’t have the capacity to handle hiring-related HR issues. Since PayReel specializes in these services, we have systems in place to make everything as efficient and smooth as possible. Sometimes, having an EOR in position can be the difference between staffing and finishing projects on time and tanking a project before it really even gets off the ground. If you think you might benefit, reach out to PayReel and we’ll talk through solutions for your unique situation.

Engaging independent contractors comes with a high level of responsibility no matter where you are. Still, some states have a reputation for being especially risky. Oregon is one of those and any business that engages independent contractors in Oregon must take extra care to stay compliant with worker classification and labor laws. 

Some employers like having more employees, feeling it gives workers more ownership in the company’s success. Others say it makes their business model unsustainable. Whether a worker performs work outside the usual course of the hiring entity’s business is the main determination for which workers qualify as independent contractors. 

Some companies have restructured operations completely to avoid hiring more W2 employees (new laws have a way of precipitating new ways to get around said laws). Another way to avoid reclassifying is simply to operate business as usual and wait to be challenged. Smaller companies have been known to get away with this approach indefinitely. It’s risky, but it does happen.

Worker Classification in Oregon

While Democratic and Republican governments have decidedly different approaches to worker classification, the recent trend is going in the direction of making it harder for companies to classify workers as independent contractors, with democratic administrations prioritizing accurate worker classification and punishing employers that don’t comply. 

Federal legislation is one thing and then states have their own rules. Companies that engage workers in Oregon need to be in position to observe Oregon’s worker classification rules. Violators can face penalties such as fines, possible jail time, and damage to their reputations. 

Why Does The Department of Labor Care?

Independent contractors have been known to write off business expenses and sometimes underreport income, small businesses have avoided certain taxes with fewer W2 employees, and independent contractors are more difficult to track and tax accurately than W2 employees. In California’s Dynamex decision, the court identified some of the challenges misclassification causes, saying it is “a very serious problem, depriving federal and state governments of billions of dollars in tax revenue.” 

What About The Workers?

Oregon’s approach to worker classification (among other topics) purportedly intends to protect workers and many consider Oregon one of the most worker-friendly states. 

Still, some independent contractors have been unhappy with the changes and expressed concern for their livelihood. Even if all the perks afforded an employee (healthcare, time off, etc.) bring them close to their original pay in practice, their paycheck may look a lot smaller on the surface. Many industries have been granted exemptions, indicating that, as always, there is no simple cut and dry to an issue this complicated. 

Independent contractors set their own schedule and manage their own businesses. While ICs are still responsible for paying taxes, they can also take advantage of many write-offs. Along with the perks, they do have the responsibilities that come with owning their own business. They run their own books, pay quarterly taxes, advertise, purchase their own equipment, and deal with the seasonal nature of business. Independent contractors also don’t get paid time off and are responsible for purchasing their own health insurance.

Some workers prefer the stability and possibility for advancement that come with having a greater presence at the office and familiarity with the ins and outs of the company.

What Best Practices Mitigate Worker Classification Risks in Oregon?

Unless a company is made up 100% of full-time employees, this subject is relevant to operations. Failure to classify employees correctly could result in fines, back taxes, and even jail time. Stay well on top of worker classification rules and know the exemptions that may apply to your industry. Of course, if your business doesn’t have the bandwidth to stay on top of everything, engaging a partner is an excellent option. Working with an Employer of Record (EOR) or Professional Employer Organization (PEO) is standard best practice in this evolving freelancer economy. 

While both provide payroll and insurance services, the differentiating factor is that an EOR relieves employers of much of the regulatory risk involved in working with independent contractors while a PEO operates as a co-employer and does not assume the employment risk.

What Are The Stakes for Mistakes? 

Big companies like Uber make headlines for their missteps and pay equally big fines for their worker classification choices. Still, it can be a costly mistake to think it’s only the big companies that face consequences. By rescinding the Trump Administration’s “Worker Classification Rule,” the Biden administration made it easier for workers to argue for minimum wage and overtime protections/compensation. In addition to having to pay back 100% of the matching FICA taxes they would have paid had they classified the worker correctly up front, employers can end up subject to additional penalties such fines for each W-2 form they fail to file, penalties equal to 1.5% of the employee’s wages, and a $5,000 penalty for the first misclassified employee and up to $25,000 for each subsequent violation

Suffice to say, misclassifying workers does not save money in the long run. Perhaps scarier than the possibility of monetary damages, misclassification has landed some business leaders under house arrest. 

In addition, class-action lawsuits, failed audits, and negative headlines can damage a company’s reputation to the point where both workers and consumers are hesitant to engage with a company. It’s just not worth it!     

Bottom Line 

The most common mistake when engaging contractors in Oregon is misclassifying workers. Being lax about any risk and compliance issues is a danger to your operations. As the economic landscape shifts and independent contractors rise in prevalence, the financial stakes and potential for missed revenue rise, too. Government agencies such as the IRS and DOL will continue to ramp up their focus on the subject. States are also attempting to crack down on misclassification while tightening the reins on training requirements, and payroll guidelines.

There’s big money in class action lawsuits and new cases are always brewing. Fear doesn’t serve you well, but businesses should be very, very conscientious when engaging independent contractors in Oregon. A high level of vigilance protects your business. It’s worth doing whatever it takes to stay compliant and reduce the risk for fines and unpleasant attention from the IRS.

When is Engaging a Partner a Good Idea?

If you don’t have the in-house capacity to do it yourself, it’s worth engaging a partner. Doing business in Oregon is complicated and the consequences for errors can be very damaging. While the onus is on employers to classify workers correctly and stay in line with the state’s changing requirements, the right partner can make a rocky landscape smooth.

For PayReel, accurate worker classification and top-notch risk management are always the priority. We strive to stay aware of changes in the regulatory climate, monitoring state and federal regulations to the best of our ability. 

If you think a partner would help your business stay compliant, contact us now. 

Kaitlyn’s background handling property tax issues and motor vehicle dealers has sharpened her customer service skills. She loves being able to help people find solutions and just generally make their day better. Kaitlyn stays extremely organized so she can be at her best in her role. She lives by her calendar and planner.

Growing up, Kaitlyn’s parents owned a roller skating rink and the passion for skating has stayed with her into adulthood. She’s a serial DIYer and especially enjoys silversmithing and refinishing furniture. On the weekends, you might find Kaitlyn hanging out with her two pets or volunteering in her local animal shelters or soup kitchens.

Something else: Kaitlyn believes that good things take time, so if you drop by, you’ll likely find some of those good things fermenting on her counter in the form of kombucha or kimchi.

While California is the state that makes headlines for its frequent legislation and tough employment guidelines, Washington is very similar. It’s considered a risky state to bring on independent contractors due to its strict worker classification rules. The high stakes for mistakes mean it’s important for businesses to take care to stay in good standing. 

Worker Classification

Federal rules around worker classification continue to make it harder for companies to classify workers as independent contractors. Each administration has its own approach to worker classification, but democratic administrations tend to have their sights set on prioritizing misclassification. 

In addition to the federal legislation, states have their own rules. Washington has some of the strictest requirements surrounding worker classification and it’s important for companies to pay attention because violators risk strict penalties such as fines, possible jail time, and damage to their reputations. 

Why Does The Government Care About Worker Classification?

It depends on who you ask. Governing officials are quick to say their first motivation is watching out for workers. Beyond that, it’s clear that there are serious funds on the line, too. Independent contractors write off business expenses and sometimes underreport income while small businesses can avoid certain taxes with fewer W2 employees. In addition, independent contractors are more difficult to track and tax accurately than W2 employees. 

What Does it Mean For Business?

Properly classifying workers is a highly-complicated task. The distinction can depend on factors such as the ability to hire or fire a worker, the kind of occupation, the method of payment, location of the worker and more. Some employers lean toward hiring employees, feeling it gives workers more ownership in the company’s success. Others say leaning on independent contractors makes their business model sustainable. Either way, some companies have had to restructure operations completely or bolster their Human Resources departments to make sure they’re above board. 

What About The Workers?

Washington’s approach to worker classification (among other topics) purportedly intends to protect workers and provide reasonable protections, which is why many consider it one of the most worker-friendly states. Still, some independent contractors find such an approach makes it difficult for them to operate.  

Independent contractors set their own schedule and manage their own businesses. While they are still responsible for paying taxes, they can also take advantage of many write-offs. Along with the perks, they do have the responsibilities that come with owning their own business. They run their own books, pay quarterly taxes, advertise, purchase their own equipment, and deal with the seasonal nature of business. Independent contractors also don’t get paid time off and are responsible for purchasing their own health insurance.

Some workers prefer the stability and possibility for advancement that come with being an employee and having a greater presence at the office and familiarity with the ins and outs of the company.

What Best Practices Mitigate a Company’s Risk?

Unless a company is made up 100% of full-time employees, this subject is relevant to operations. Failure to classify employees correctly could result in fines, back taxes, and even jail time. To stay well on top of worker classification rules, businesses can first determine if their operations are exempt from applicable laws. From there, they can follow classification news and observe how changes play out in practice. For those without the capacity or interest in having an internal team dedicated to the task, engaging a partner can be a great option. Working with an Employer of Record (EOR) or Professional Employer Organization (PEO) is standard best practice in this evolving freelancer economy. 

While both provide payroll and insurance services, the differentiating factor is that an EOR relieves employers of much of the regulatory risk involved in working with independent contractors while a PEO operates as a co-employer and does not assume the employment risk.

What Are The Stakes for Mistakes? 

Big companies like Uber make headlines for their missteps and pay equally big fines for their worker classification choices. Still, it can be a costly mistake to think it’s only the big companies that face consequences. By rescinding the Trump Administration’s Worker Classification Rule, the Biden administration made it easier for workers to argue for minimum wage and overtime protections/compensation. In addition to having to pay back 100% of the matching FICA taxes they would have paid had they classified the worker correctly up front, employers can end up subject to additional penalties.

Misclassifying workers does not save money in the long run. Perhaps scarier than the possibility of monetary damages, misclassification has landed some business leaders under house arrest. 

In addition, class-action lawsuits, failed audits, and negative headlines can damage a company’s reputation to the point where both workers and consumers are hesitant to engage with the company. It’s just not worth it!     

Bottom Line 

With the increasingly narrow definition of an independent contractor, the US is embarking on the real-time evolution of the economy. The most common mistakes when engaging contractors in Washington are misclassifying workers, (of course!), being lax about training requirements, or making privacy and meal wage/overtime errors. 

As the economic landscape shifts and independent contractors rise in prevalence, the financial stakes and potential for missed revenue rise, too. In response, government agencies have been ramping up their focus on the subject. The IRS and DOL are not alone. States are attempting to crack down on misclassification while tightening the reins on training requirements as well as payroll guidelines.

Where the money goes, lawyers follow. There’s big money in class action lawsuits and new cases are always being filed. While fear is never productive, companies should be very, very conscientious when engaging independent contractors in Washington. Companies must be very vigilant to protect their business, stay compliant, and reduce the risk for fines and unpleasant attention from the IRS.

When is Engaging a Partner a Good Idea?

If you don’t have the in-house team to do the job right, it’s worth considering working with a partner. The bottom line is that doing business in Washington is complicated and the consequences for errors can be very damaging. While the onus is on employers to classify workers correctly and stay in line with the state’s changing requirements, it’s possible to navigate a rocky landscape with relative ease.

In our world, accurate worker classification and top-notch risk management when it comes to overtime, meal wage, and other laws are always the priority. We are the first to be aware when change is in the air. We track rules in every state as well as on a federal level and offer services to help clients stay compliant. Curious where your business stands? Reach out for a free consultation on your risk profile.