Independent Worker Strategies

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The use of contractors, gig workers, freelance workers, and crowd workers has proliferated, as has litigation challenging the non-employee classification of these workers; effectively structuring, enhancing, and managing those relationships in a defensible manner is critical to everyone’s success.

For many companies, effectively structuring and maintaining legally-compliant and effective non-traditional work relationships has become critical from both a business standpoint and a legal standpoint. Indeed, independent workers are now a permanent feature of the workforce for a growing number of employers, and the number of independent workers compared to traditional employees continues to rise worldwide. Further complicating matters is that the law in this area is rapidly evolving—and litigation is ramping up as a result.

Developing consistent approaches, processes, and practices to recruit, contract with, and implement a successful, mutually rewarding, and legally-defensible independent worker relationship is critical. Equally important is the development and implementation of processes to ensure diversity, inclusion, and fairness when using forms of independent work.

Companies that use independent workers are well-advised to review and update their contracts, requisition practices, fees, and other applicable practices to ensure that they maximize the relationships while complying with all applicable laws. Such companies should also consider training relevant contract, finance, and other managers on appropriate practices in dealing with independent workers. Taking such measures up front may prevent costly litigation in the future and, at the very least, reduce the risk of an adverse finding by having legally-defensible bases for the non-employee classification of such workers. And if litigation does ensue, then it is crucial that a company defending a lawsuit quickly devise a defense strategy in partnership with seasoned counsel.

HOW WE HELP

Our attorneys have extensive experience advising companies on how to effectively contract, manage, and terminate independent worker relationships, as well defending companies against misclassification and joint employment claims. We review and draft independent contractor agreements, staffing agency agreements, and other non-employee work agreements, other related documents, training programs for managers, and other relevant policies, all with an eye toward ensuring compliance with applicable labor and employment laws while enhancing the company’s relationship with its independent workers and its defenses to misclassification or joint employment claims. We also have a wealth of experience representing employers in independent contractor and third-party worker litigation, including cases alleging independent contractor misclassification and joint employer status.

Seyfarth attorneys have worked with clients in a variety of industries on the issue of independent contractor and non-employee relationships. We also work with clients of varying sizes in diverse locations around the globe. We provide our clients with legal advice in the area of independent contractor and non-employee workforce management in a way that never loses sight of the practical considerations involved. We also work with our clients to develop inventive and creative solutions to the challenges that they face in this area.