Legal Status of Contingent Workers
In: Compensation and benefits review, Band 35, Heft 4, S. 47-60
ISSN: 1552-3837
Contingent workers constitute a vital component of the workforce for many companies. A recent estimate has placed the number of contingent workers in the United States at 3 million, with about half, or one and one half million, performing the same services for the same company for six months or longer. However, the vast majority of companies using contingent workers have not developed a cogent plan for avoiding the numerous legal pitfalls and maximizing the benefit of the various categories of contingent workers. Consequently, many companies never benefit from the significant cost savings and risk-management benefits provided by such a plan. This article raises the strategic, legal and financial issues companies need to consider in navigating the contingent worker landscape, addresses the potential pitfalls and provides solutions for managing the contingent workforce.