WORKER CLASSIFICATION

The workforce is evolving. There are fewer full-time positions and more project-oriented, “we’ll call you when we need you” jobs. Funny thing is many young, culturally diverse people coming into the workforce don’t necessarily want to be anchored to a single employer. They certainly aren’t looking for the stable but inflexible gigs their parents coveted. These workers, in some circles referred to as “millennials,” are not looking to belong to one company. They are looking for contract work – something that allows them to explore and thrive.

The changing landscape

Boredom is the true enemy of the emerging workforce who have spent a lifetime consuming quick-moving digital content. That means employers have their work cut out for them to keep these expressive, gifted, and demanding people engaged. Companies are responding with cereal rooms, napping pods, and mandatory time off / unlimited vacation (that’s Upworthy we’re talking about and yes, they’re hiring).

Why people choose contract work

Some people love the gig economy because they get to choose when and how to work. They can pick the jobs that appeal to them. They can decide whether to accept a job or hit the slopes. It has (at least in theory) restored the work / life balance that many millennials feel their parents’ generation lost.

Drawbacks of contract work

With all the benefits of contract work, it may seem like there isn’t really a place for brick and mortar offices and full-time positions anymore. And while their prominence in the workforce is decreasing, they still exist (and will for the foreseeable future). We still need them. For now. And besides, contract work still has its drawbacks, including less stability and fewer built-in benefits such as 401K matching, sick days, paid holidays, and healthcare. Having fewer workers on-site can also pose challenges for businesses because the office environment encourages team morale and facilitates communication, which in turn supports a unified brand identity. Being in one location also allows for in-person meetings and there simply isn’t an adequate substitute for that yet.

The bottom line

If you make your living job to job, PayReel’s real team of real people is here for you. We provide personal service to make sure employees get paid quickly and accurately. Go ahead, give us a shot!  You can call us anytime at 303.526.4900 or reach us by email at info@payreel.com.  We look forward to hearing from you.

About PayReel

At PayReel, we minimize the time and effort it takes to get you ready for your project, make sure you get paid quick and easy, and have customer service agents on call around the clock to answer your questions. The PayReel team makes event and corporate payroll easier, faster, and seamless.

The next time you work an event or a production, tell your supervisor you love working with the PayReel team!

If anything’s certain, it’s that very little is certain when it comes to the rumors and grand plans that often surround any President’s first 100 days in office.

Worker classification was a major focus during President Obama’s administration, which resulted in a rash of highly-publicized lawsuits and debates across the U.S. just as the on-demand economy was coming of age.

The Trump administration’s focus on that same unique issue might actually play out favorably this time around for employers who rely on independent contractors. But before you throw all your paperwork out the window—that doesn’t mean classification is going out the window, too. In fact, some states and localities might even tighten restrictions and increase punishments for misclassification in response to relaxed federal law.

In short, things are as up in the air as ever when it comes to the federal government trying to keep up with rapid developments in the on-demand economy.

Here’s what to do while you wait to see what President Trump’s first 100 days mean for the on-demand economy.

Be vigilant when it comes to compliance

Federal, state, and local regulations already change regularly; who knows how things could fluctuate as the government tries to get a grasp on how benefits, taxes, and everything else could and should shift as workforces get more and more non-traditional.

Don’t slack on the classification

The process of classification might eventually get easier, but it’s not likely to go away. If the current situation is any indication, it could even get a bit hairier for some states and localities as they react to uncertain or lax laws at the federal level.

The bottom line:

If you can’t (or just don’t want to) keep up with the rules and developments surrounding the on-demand economy—PayReel can keep up for you. Not only does our team manage worker classification, payroll, and payroll taxes; as the employer of record we even take on all risks associated with a variable workforce.

About PayReel

Producing multimedia content and executing live events is chaotic. At PayReel, we make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave all payroll services and details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.

Relax. We got it.

Need a ride? Get a Lyft.

Want a meal? Here’s your hub for grub.

Need a bed? Skip the air mattress: Airbnb instead.

Companies providing on-demand products and services have revolutionized the economy. And Uber is at the front of the pack; pushing boundaries in both worker classification and technology. While this new frontier is sometimes undefined, it is still subject to fines and lawsuits—both of which are eating into Uber’s profits.

With its latest settlement of at least $84 million, Uber avoided having to classify drivers, who are currently independent contractors, as employees. The battle may not be over, but in the meantime, all businesses can learn a few things from Uber’s über settlement.

1) Communicate, Communicate, Communicate  

Fuzzy terms cause mistrust among employees, independent contractors, and consumers alike. Several disputes with Uber boil down to its lack of transparency. Los Angeles and San Francisco allege the company misled customers. Even Uber’s CEO Travis Kalanick acknowledged a communication failure with its drivers, saying,

“…as Uber has grown—over 450,000 drivers use the app each month here in the U.S.—we haven’t always done a good job working with drivers. For example, we don’t have a policy explaining when and how we bar drivers from using the app, or a process to appeal these decisions. At our size that’s not good enough. It’s time to change.”

2) Invest In Worker Classification

The complaints against Uber point to the fact that any gray area in how a worker is defined can cause trouble. What’s worse is that the rules for setting up an independent contractor aren’t always easy to interpret. In fact, we have a whole worker classification series as well as a worker classification quiz to help you understand the law and avoid costly fines. 

In addition to setting up independent contractors correctly, having an airtight system in place for consistently payrolling all of those contractors also protects against future headaches. Confusion over worker classification and inconsistent payment practices can lead to fines, lawsuits, and unhappy workers or customers—all of which are damaging to business. Any way you slice it, making sure you get it right up front is worth the investment.

Need help getting worker classification right? Well, you’ve come to the right place, because we’ve been doing just that for three decades. Contact us today and avoid the fines and lawsuits. 

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail—down to worker classification—perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.

Sorry, y’all: The five-second rule is bogus. Germs don’t offer a grace period before jumping on your food. Not even your last bite of the really delicious stuff. But that one about metal objects dissolving in a glass of Coke? Still up for debate. And we won’t be testing it to find out.

Myths can be dangerous, silly, or in the case of worker classification—bad for business.

There is a fine line between an employee and an independent contractor and laws surrounding worker classification are confusing. We’ve seen companies go to great lengths to comply with nonexistent rules, so we were compelled to bust one of the most damaging worker classification myths we’ve seen.

The Myth About Worker Classification

After a certain amount of time working for you, an independent contractor must be reclassified as an employee.

We think this myth likely comes from one-time best practices that were interpreted as hard and fast rules. Wherever the myth comes from, we’ve seen clients build all sorts of policies to get around the supposed law. We’ve seen them hire workers for six months, drop them for a period of time, and then rehire them, for example. Some companies even refuse to rehire independent contractors after working with them for a certain amount of time because they’re afraid they’ll have to provide all of the benefits associated with hiring an employee. Not only are these policies time consuming, but they can also hurt businesses that rely on trustworthy freelancers.

The Truth About Worker Classification

We think it’s time for everyone to bust the myth and bust free from self-imposed restrictions.

Here’s the liberating truth: If you find a good contractor and want to use them over and over, you can. There are rules, which vary by location, but there are also legal ways to keep your best people working for you.

If you’re confused by compliance laws and fear your workers are misclassified, PayReel can help. Reach out to our team of experts on all things freelance. Get away from the burden of onboarding, payrolling, and classifying your workers and focus on what you love.

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.

Employee misclassification is on a lot of people’s minds. Hillary Clinton has even made it a part of her campaign. It’s pretty irritating that the rules are confusing, vary from state to state, and are often subjective, but there are a few standards that remain true across the board.

If you want to get all the rules straight from the horse’s mouth/in the government’s own words, you can get the whole scoop right here. This covers the 20 factors they consider in full, governmental legalese.

Skip the legalese and give me the highlights, you say? You got it. According to this article on Forbes, a few consistent factors apply to “most worker status cases.” Should you find yourself trying to defend your worker classification choice, the following elements are most likely to be considered:

• The employer’s degree of control over the worker
• The worker’s opportunity for profit or loss
• The worker’s investment in facilities
• How long-term the relationship is
• The worker’s skillset

As you are classifying and auditing your current classifications, start by examining the basics above and dig deeper when you’re ready.

In the meantime, check out our series on the subject:

Worker Classification: Top Ten Classification Compliance Mistakes

Worker Classification: 5 Reasons Companies Can’t Ignore Compliance Rules

Worker Classification: What’s the Problem And Why Should You Care?

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail—right down to worker classification—perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.