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Word of the week: ‘Independent contractor evaluation and compliance’

February 11, 2020

“Independent contractor evaluation and compliance,” was a steady business for a long time, but it got a lot more interesting recently with California’s AB 5 law and moves by other states to consider similar laws.

AB 5 aims to get tougher on independent contractors and codified the more-strict ABC test to determine independent contractor misclassification. The law has drawn criticism, and its author plans to make revisions.

In light of this, today’s word of the week is “independent contractor evaluation and compliance.” For the full definition, please see

SIA’s Lexicon of staffing terminology described “independent contractor evaluation and compliance” as “a service segment of the payrolling/compliance industry, independent contractor evaluation and compliance describes a service provided to a hirer to ensure the hirer is not exposed to any legal and/or financial risk related to the sourcing, recruiting, hiring and/or management of independent contractors.”

The full definition is online.

In addition, the Lexicon includes other terms used in the industry, and is available online for free.