Page "Freelancer" Paragraph 22

At the same time, this increased enforcement is affecting companies whose business models are based on using non-employee workers, as well as independent professionals who have chosen to work as independent contractors.

For example, book publishing companies have traditionally outsourced certain tasks like indexing and proofreading to individuals working as independent contractors.

Self-employed accountants and attorneys have traditionally hired out their services to accounting and law firms needing assistance.

The U. S. Internal Revenue Service offers some guidance on what constitutes self-employment, but states have enacted stricter laws to address how independent contractors should be defined.

For example, a Massachusetts law states that companies can hire independent contractors only to perform work that is " outside the usual course of business of the employer ," meaning workers working on the company's core business must be classified as employees.

According to this statute, a software engineering firm cannot outsource work to a software engineering consultant, without hiring the consultant as an employee.

The firm could, however, hire an independent contractor working as an electrician, interior decorator, or painter.

This raises questions about the common practice of consulting, because a company would typically hire a management consulting firm or self-employed consultant to address business-specific needs that are not " outside the usual course of business of the employer.