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