In yesterday’s Advisor, business consultant Bridget Miller presented some of the benefits of recruiting contingent workers for your organization. Today, Miller highlights the risks involved.
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What Are the Risks?
There can be downsides to having contingent workers. Here are some of the concerns:
- Employee morale may be affected. Depending on the implementation of a contingent workforce, some regular employees may see this workforce as a way to reduce overall compensation and benefit levels. If this is true—or if it appears to be true to a sufficient number of employees—morale could suffer.
- There are legal questions to contend with. Employers need to be sure they’re not illegally labeling workers as independent contractors, for example. Due to the propensity of some organizations to attempt to skirt the law by improperly labeling employees, using a contingent workforce may also bring heightened scrutiny in the future.
- Less control. For most contingent workers, employers do not want to consider this person as an employee. This means the employer cannot exert too much control over how and when the work gets completed. This risk can be viewed both positively and negatively; the positive aspect is that the company can get work done with limited interaction required.
- Workers’ compensation laws will not protect you. Contingent workers who are independent are not typically covered by your workers’ compensation insurance. If you have these workers on-site and an injury occurs, this could be problematic for everyone.
Want to learn the best way to manage your contingent workers? Join us at the 2015 Advanced Employment Issues Symposium (AEIS) on November 4-6 for the panel NetFlix, Hulu, Apple TV and Employees? How to Legally and Strategically Manage On Demand Contingent Workers. Learn more.
Contingent Workers: Looking to the Future
As contingent work becomes more commonplace, it’s likely that laws will need to catch up with a changing labor force. Currently, there are only very limited protections for contingent workers, and these protections vary depending on the situation. In many cases, there’s no overtime pay protection, no workers’ compensation, no unemployment insurance, and so on. (There will be exceptions of course; some protections will apply in some scenarios.)
If more workers opt to work on a freelance basis—even if only in addition to their regular work—then there will be more pressure for the law to catch up. It’s worth keeping an eye on this topic going forward.
Contingent workers is just one of the many topics that will be covered at BLR’s 2015’s Advanced Employment Issues Symposium (AEIS). AEIS 2015 is the conference to attend if you want practical guidance for overcoming the latest management challenges. AEIS has a lot more to offer than just our panel on NetFlix, Hulu, Apple TV and Employees? How to Legally and Strategically Manage On Demand Contingent Workers.
Take a look at just some of the other panels at this year’s AEIS:
- Affordable Care Act Update: New Employer Reporting Obligations for 2016
- Exempt or Eligible Supervisor? When Managers Are Entitled to Overtime Under the FLSA
- How to Align Your Performance Management System with Your Total Rewards Strategy
- Reality-Based Inclusion: How to Shift Mindsets to Embrace Diversity and Maximize Success
With over 15 available HRCI credit hours among the numerous panels and events at AEIS, you gain experience just by attending.
Want to learn more? Take a look at 2015 AEIS’s agenda.
Contingent workers are a tricky topics. Join us on November 4-6 for the AEIS 2015 panel NetFlix, Hulu, Apple TV and Employees? How to Legally and Strategically Manage On Demand Contingent Workers to learn the latest tips and tricks. Learn more.
AEIS 2015 kicks off with insights into this year’s critical legislative, regulatory, and case law developments that affect your workplace policy and practice compliance, with a preview of 2016 changes. Seasoned employment law attorneys will discuss key trends that should be on your radar and offer practical strategies for overcoming pressing and emerging HR compliance challenges.
For starters, AEIS contains programming on these following topics:
- The impact of 2015 U.S. Supreme Court cases on how you manage day-in and day-out
- How the 2015 union ambush rule makes it tougher to stay union-free
- How to minimize wage and hour violations in light of changes to DOL rules
- HR’s role in protecting electronically stored data
- Current ADA problems with wellness program financial incentives and penalties
- Emerging employment law trends for 2016 and beyond
- And much more!