RED FLAG # 17
Labor relationships that are structured to avoid costs that come with formal employment arrangements
For Example
- Online and offline gig workers
- Contingent labor
- Unpaid internships
- Incorrect categorization of workers as “independent contractors”
- Reliance on labor provided by third parties (see red flag 18)
Higher-Risk Sectors
- Technology sector, in particular, digital platforms for services, including transportation and grocery/meal delivery
- Companies reliant on independent contractors and/or workers at third-party contract firms
- Client services firms or international organizations relying on unpaid internships
Business Model Red Flags
Tool for Indicator Design



