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"Can the Broker-Carrier Model Reduce Your Misclassification Risk?"
How implementing a better business model can strengthen your workforce against California’s AB5 and similar legislation nationwide.
In a transportation industry that’s becoming increasingly complicated, preventing misclassification claims can be challenging, especially without the proper technology and business model in place. But for companies that work with independent contractors, the most comprehensive and defensible approach against misclassification may be the broker–carrier model, which offers a potential path out of the quagmire of the ABC test’s B prong. So, before we get started, one basic question remains: What’s your model?
ABOUT THE GUIDE
Though distinctions between the five delivery and logistics workforce models may seem confusing, fully understanding how to implement the right one can help you navigate the many legal woes of misclassification.
In this guide, we’ll examine:
The benefits and pitfalls of each delivery and logistics model
The nuances and consequences of lawsuits alleging misclassification
Best practices for applying the broker–carrier model to your business
How technology can alleviate risks of misclassification and third-party liability
We provide user-friendly software and services built to reduce the risks and increase the efficiency of companies that use independent contractor workforces. Openforce’s technology empowers contracting companies to recruit, onboard, pay, and insure independent contractors compliantly and confidently.
Through decades of experience serving companies and contractors in delivery and logistics, we understand the complexity, the ambiguity, the paperwork and all the other things that inevitably fall through the cracks. After years of helping contracting companies avoid and defend against misclassification claims, we’ve developed the tools and network to enable contracting companies and independent contractors alike to adapt to a new world of work.
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