IC debate reaches new level: Staffing Word of the Week


The exact definition of who qualifies as an independent contractor has long been controversial with governments using various tests to determine bona fide independent contractors. However, the debate seems to have reached a new level. Last week, California’s Attorney General sued Uber Technologies Inc. and Lyft Inc. claiming their drivers were misclassified as independent contractors under California’s new AB 5 law.

The law went into effect on Jan. 1 and codifies the more-strict “ABC” test for worker status determinations.

Although the lawsuit names only Uber and Lyft, the AB 5 law could have ramifications for other companies as well.

In light of the ongoing debate, SIA’s Staffing Word of the Week is “qualified independent contractor.”

SIA Lexicon defines a qualified independent contractor as “any worker who has been evaluated and determined to meet the legal requirements to perform work as an independent contractor.”

The full Lexicon is also available for free with a number of workforce ecosystem terms.