Independent Contractor Classification: How Certification May Help Reduce Compliance Risk

By MBO Partners • May 4, 2016

2 MIN

The growth and innovation of the American workplace has outpaced the evolution of laws and rules. A modern solution is very necessary to (re)stimulate this innovation. With this in mind, this week, we released a proposal, the Certified Self-Employed (CSE) solution, to modify how the U.S. government classifies and regulates independent workers.

The growth and innovation of the American workplace has outpaced the evolution of laws and rules. With issues ranging from independent contractor compliance to guaranteed worker protections, a modern solution is very necessary to (re)stimulate this innovation. MBO has released a certification solution to modify how the U.S. government classifies and regulates independent workers: Certified Self-Employed (CSE). CSE addresses the aforementioned issues, removing the risk associated with hiring independent talent.

Simply put, CSE creates a risk-free exchange of independent labor, removing any potential friction that would deter clients from utilizing independent contractors.

A balance must be struck whereby these independents are not taken advantage of by their clients, yet can also pursue their work and engage with clients in an effective, misclassification-free manner, while funding their own safety-net and taxes.

The proposed solution creates a worker designation that allows American independents to have greater control over both their opportunities for work as well as the freedom to run their own business. It removes the ambiguity of worker classification risks and costs that they may currently encounter with potential clients.

This proposal is unlike many others, especially because it’s realistic: unlike previous proposals to manage the booming gig economy, this solution requires minimal regulatory intervention once the certification standards are created.

Read the full proposal: