Classification Challenges Involving Use of Independent Contractors in the US Workplace

Victoria Filippov Nemeth, Principal, Filippov Law Group, PLLC

The independent contractor workforce is a rapidly evolving component of the U.S. economy that has significantly increased in recent years. Even before COVID, independent workers were a growing part of the U.S. labor force. According to the US Bureau of Labor Statistics (“BLS”), there were about 9.6 million self-employed workers in 2016, a number that is projected to increase to 10.3 million by 2026. In September 2018, the BLS released its estimate that that 990,000 workers (0.6 percent of the workforce) do electronically mediated work where they provide services in person (working for companies like Uber, Handy, TaskRabbit, etc.). In 2019, around 41 million Americans were classified as gig workers. COVID-19 has only accelerated this gig economy use of independent contractors. Tech-mediated gig work is the latest trend of “nonstandard” subcontracted, temporary, on-demand, or freelance work. A 2020 Upwork study suggests that 24% more people entered the gig economy during the summer of 2020 than in previous years.

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USA Employment Consultant December 2021 Vol.14, No. 57, Autumn 2021

Victoria Filippov Nemeth

Victoria is an experienced business attorney with a comprehensive background in Business Law, Commercial Litigation, Collections, Contract Preparation and Negotiation, Corporate Governance, Risk Management and Mergers & Acquisitions. In her roles as an outside corporate counsel, general counsel, chief compliance officer, and COO, Victoria has managed the legal affairs and operations of both private and publicly traded companies in the United States and abroad. Since 1999, Victoria has helped hundreds of companies make their enterprises more efficient, while reducing legal risk and exposure. As the managing member of our firm, she works directly with our clients to design and implement best-practice processes and procedures that encompass their vision and goals, while reducing the need for costly attorney’s fees and time-consuming litigation.

Filippov Law Group, PLLC

Many privately owned businesses do not have their own in-house counsel, but still need the assistance of experienced corporate lawyers. Filippov Law Group makes experienced Houston business and energy lawyers available to individuals, startups, and small-to-medium sized businesses in a cost-effective manner. When our business clients retain us, our attorneys develop creative legal solutions customized to meet the unique objectives of that company. We provide strategic, long-term business planning and outside "general counsel" services designed to reduce risk and aggressively safeguarding each client’s interests.

USA Employment Consultant December 2021 Vol.14, No. 57, Autumn 2021