In our industry, change is the only thing that is common. After 20 years of being in business, we’ve seen hundreds of worker regulations shift and we’ve also seen cases where not keeping up with that adjustment can mean big trouble for certain individuals. For Aaron Hageman, CEO of Deliver Driver’s, Inc., he has seen almost everything this industry can dish out. We asked him 3 questions about worker regulations and issues facing HR departments; here’s what he has to say.
Q) “Which is a bigger issue facing companies and their HR departments: The ability to balance their daily tasks with the added responsibility of learning new worker regulations OR staying current with new regulations?”
A) “Both issues are relevant given the attention that independent contractors are getting due to the gig-economy, as well as the fact that everyone is interested in the last mile right now. Managing the workload associated with regulations is, in my opinion, the more difficult of the two tasks. In other words, keeping up with the rules whilst implementing the changes across your workforce is extremely difficult. It involves training your internal HR team (assuming you have a full-time internal human resources team of course), communicating the changes to the existing workforce and updating everything for them, as well as properly and compliantly executing all of the associated work moving forward. There is a large amount of government attention, including lawsuits, devoted to the issue. Additionally, changes in labor laws are changing rapidly. It is not merely one set of regulations that define independent contractors versus employers, but one hundred different rules that vary across our country! This makes it quite difficult to stay up-to-date.”
Q) “What is your forecast as to what NEW issues HR departments will face in 2017, if any?”
A) “2017 will see an expanded auditing task force as well as more inquiries into the nature of 1099-based working relationships. Don’t let the political climate or the economy fool you; 1099 compliance is now more important than ever! One thought we often discuss here at DDI is the fact that the workforce out there is more educated than ever. Gig-economy workers are acutely aware of the dynamics and freedoms that come with being a self-employed contractor. If you fail to run your business relationships with these workers properly, it is not the government that will be pressing the issue of 1099 versus W2 status, but the workers themselves!”
Q) “What is one tip or piece of advice that relates to the topic in the above question?”
A) “Proper 1099-related human resources management requires expertise; it’s a full-time effort. I encourage everyone to do their research to see which is a better option: keeping it in house or to outsource it.
2017 will bring with it more stringent regulations and related enforcement due to the gig-economy and many different constantly-changing regulations regarding 1099 employment. To best manage compliance and avoid HR issues, hiring experts in the field (such as DDI) is a solid investment.
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