--- title: The Top Independent Contractor Trends to Watch in 2019 description: Independent contractors and their employers regularly explore uncharted territory. Keep an eye out on these three trends for 2019. image: https://blog.innovativeemployeesolutions.com/hubfs/Imported_Blog_Media/Independent-Contractor-Trends.jpg --- [Skip to content](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/independent-contractor-trends-to-watch-for-in-2019#main-content) [![IES Logo_Full-ColorNavy](https://blog.innovativeemployeesolutions.com/hs-fs/hubfs/IES%20Logo_Full-ColorNavy.png?width=300&height=140&name=IES%20Logo_Full-ColorNavy.png)](https://www.innovativeemployeesolutions.com/) - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) [mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/independent-contractor-trends-to-watch-for-in-2019](mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/independent-contractor-trends-to-watch-for-in-2019) March 28, 2019 # The Top Independent Contractor Trends to Watch in 2019 Written by: [Sara Jensen](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/sara) Independent contractors and their employers regularly explore uncharted territory. With so many businesses now relying on the swelling gig economy, the National Labor Relations Board’s January decision to [broaden the definition](https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/nlrb-changes-definition-of-independent-contractor.aspx) of independent contract work could create a ripple effect in the labor market. HR professionals should keep a close eye on what comes next to protect their companies and maximize the effectiveness of their workforces. Fortunately, 2018 provided a sneak peek at the independent contractor trends of 2019. Industries have already gotten a taste of the freelancer-first world. Now, businesses need to follow those lessons to their logical conclusions and make the appropriate adjustments. Consider the following trends in independent contract work and how they might affect your company: ## **1. The Growth of Gig Work** More than [a third of workers](https://www.forbes.com/sites/tjmccue/2018/08/31/57-million-u-s-workers-are-part-of-the-gig-economy/#24a9cc2a7118) in America participate in the gig economy, though many of those contractors keep regular jobs as well. HR departments should understand their companies’ business objectives and how contingent workers can help them achieve their goals. Small businesses need to pay especially close attention. [New research](https://www.cpapracticeadvisor.com/news/12440176/independent-contractor-growth-outpaces-employee-hiring-in-small-businesses) shows that small companies are now hiring more independent contractors than full-time workers. As the freelance workforce grows at [triple the rate](https://www.upwork.com/press/2017/10/17/freelancing-in-america-2017/) of the overall workforce, nimble businesses have a chance to get ahead of the curve on independent contractor management. ## **2. Uncertain Classifications** Last year’s [Dynamex ruling](https://www.innovativeemployeesolutions.com/blog/california-is-changing-the-future-of-employment-classifications-for-contingent-workers/) in California, which made it more difficult for state businesses to classify workers as contractors, brought new heat to the important question of who is an “employee.” With the NLRB easing principles and state and local lawmakers enacting their own provisions, HR departments must stay abreast of relevant classification tests. HR departments need to design flexible policies to maximize their current situations without putting their companies in difficult spots should existing laws change. The Dynamex decision [solely addressed pay for California workers](https://www.sfchronicle.com/business/article/California-to-thrash-out-gig-worker-status-in-13585979.php), but new challenges from unions and businesses will address a variety of topics. Benefits, responsibilities, liability, and more could all change in an instant. With so many parties jockeying for position in the contract work landscape, companies caught in the crossfire can’t afford to let their attention lapse. Consider partnering with an independent contractor compliance agency to make sure your company is always meeting ever-evolving regulations. ## **3. Evolving Tax Laws** President Donald Trump’s tax law, which took effect last year, provides a [20 percent tax deduction](https://www.forbes.com/sites/alangassman/2018/10/05/what-is-an-independent-contractor/#2846d7d11692) for independent contractors. However, the IRS still wants its cut. Workers who switch from being full-time employees to being independent contractors might not be eligible to claim the extra deduction without first proving their claim to 1099 status. Drivers in Uber’s limousine service, for instance, remain self-employed in the eyes of the IRS. Remote employees and on-the-road salespeople might act semi-independently, but flexibility alone does not a contractor make. Employers must be exceptionally careful about the responsibilities they give employees who make the switch from W-2 to 1099 (or vice versa). Put into context of the NLRB’s decision in January, new tax laws up the stakes. Companies have a bit more leeway about who is or is not considered an independent worker, but no foolproof checklist exists to separate gig workers from full-timers. When businesses classify workers in 2019 and beyond, they should have policies and procedures in place to define how independent contractors can be engaged — or partner with a company that offers [independent contractor compliance services](https://www.innovativeemployeesolutions.com/contingent-workforce-solutions/). The independent nature of contract work means that much of the legal responsibilities will fall to the workers. However, just because contractors must track their own income does not mean companies are off the hook. Independent contract labor will continue to grow in prevalence and economic impact this year. Businesses that create successful, sustainable infrastructures to manage contract labor will enjoy a major advantage over those that take a “wait and see” approach. Written By: [Sara Jensen](https://www.innovativeemployeesolutions.com/team/sara-jensen/), Vice President of Business Development at IES Published by: [HR.com](https://www.hr.com/en/app/blog/2019/03/the-top-independent-contractor-trends-to-watch-in-_jtsx10m7.html) Check out the published article on [HR.com](https://www.hr.com/en/app/blog/2019/03/the-top-independent-contractor-trends-to-watch-in-_jtsx10m7.html) [*Sara Jensen*](https://www.innovativeemployeesolutions.com/team/sara-jensen/) *is the vice president of business development at* [*Innovative Employee Solutions *](https://www.innovativeemployeesolutions.com/)*(IES), a leading global Employer of Record in more than 150 countries that specializes in contingent workforce solutions such as outsourced payrolling, independent contractor compliance, and contractor management services. Founded in 1974, IES has grown into one of San Diego’s largest women-owned businesses and has been named one of the city’s “Best Places to Work” for 10 years in a row.* Tag(s): [Blog](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/blog) , [Employment Laws](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/employment-laws) , [Human Resource Management](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/human-resource-management) , [Business](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/business) , [classifications](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/classifications) , [Employment Classifications](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/employment-classifications) , [Gig Workforce](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/gig-workforce) , [Recruiters and Staffing](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/recruiters-and-staffing) , [gig economy](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/gig-economy) , [Independent Contractors](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/independent-contractors) , [Independent Contractor Trends](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/independent-contractor-trends) , [Gig](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/gig) , [Tax; Tax Laws](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/tax-tax-laws) , [Independent Contractor](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/independent-contractor) ## [Sara Jensen](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/sara) ## Other posts you might be interested in View All Posts ## [payrolling 6 min read | February 22, 2019 California Is Changing the Future of Employment Classifications. Here’s What You Need to Know When Hiring Contingent Workers. Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/california-is-changing-the-future-of-employment-classifications-for-contingent-workers) ## [payrolling 9 min read | September 18, 2019 1099 Employee Misclassifications — Are You at Risk? Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/1099-employee-misclassifications-are-you-at-risk) ## [payrolling 10 min read | February 9, 2023 What Is Employee vs. Independent Contractor vs. Corp-to-Corp? Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/what-is-employee-vs-independent-contractor-vs-corp-to-corp) ## Subscribe to email updates Additional content around the benefits of subscribing to this blog feed. - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) © 2014-2026 Innovative Employee Solutions. All rights reserved. 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