While your HRIS is effective for managing permanent employees, contingent workers present distinct compliance challenges that can put your business at risk. The Vizcaino v. Microsoft Corp. case is a clear warning: even leading companies can face costly fallout from misclassifying contingent workers and blurring the lines between staff types.
At Nowsta, we empower organizations to mitigate these risks with modern workforce management solutions built for today’s dynamic labor landscape. Our platform is designed to ensure compliance, maintain clear boundaries, and streamline contingent labor operations. See Nowsta in action today and learn how to ensure you are compliant with your contingent workforce in your HRIS system.
Why Co-Employment Risks Matter
Co-employment happens when multiple parties exert control over the same worker, exposing each to shared liability. The Microsoft case highlighted the dangers: freelancers hired as independent contractors were fully integrated into teams and given access to company systems, leading the IRS and the courts to determine they were common law employees. This resulted in major financial penalties and forced a new approach to managing contingent labor industry-wide.
Key risk factors include:
- Direct supervision of contingent workers by company managers
- Integration with permanent staff, such as attending meetings or accessing company systems
- Long assignments that mimic permanent employment
- Direct compensation or benefits given to contingent staff
Limitations of Standard HRIS for Contingent Work
Traditional HRIS systems aren’t equipped to manage these unique compliance issues. They offer limited visibility, mix data streams across worker types, and lack dedicated compliance tools—gaps that make audits and legal defenses difficult.
How Nowsta Closes the Compliance Gap
Nowsta is purpose-built to address these risks and streamline contingent workforce management:
Dedicated Portals and Data Separation
Our architecture creates a clear line between contingent workers and permanent staff. Each group uses separate systems, eliminating crossover and minimizing co-employment claims.
Compliance Monitoring and AI Alerts
Nowsta tracks critical compliance factors such as assignment durations, supervision levels, and eligibility. Real-time alerts flag potential issues, letting you act before problems escalate.
Seamless HRIS Integration
You benefit from consolidated reporting with strict data separation, ensuring audit trails are clear and worker classifications remain properly documented.
Automated Documentation
Every action is logged to create a defensible, accessible audit trail for compliance reviews.
Industry Adaptability
Whether you’re in healthcare, hospitality, or events, Nowsta accommodates sector-specific certification and recordkeeping requirements to safeguard compliance.
Measured Results
Clients using Nowsta report:
- Up to 85% reduction in compliance violations
- Faster audit responses with organized records
- Annual cost savings by avoiding co-employment claims and fines
- Streamlined operations without added risk
Stay Ahead of Evolving Compliance Demands
Employment law evolves constantly, and so does Nowsta. Our compliance experts keep the platform updated so you remain protected as regulations change. As your workforce scales, Nowsta’s architecture grows with you—maintaining the same standards for separation and compliance.
Protect Your Organization with Nowsta
Don’t leave compliance and operational excellence to chance. Nowsta gives you the tools to confidently manage your contingent workforce, reduce risk, and stay audit-ready—transforming compliance into a true competitive advantage.
Ready to see how Nowsta can help? Schedule a demo today and experience a smarter approach to contingent workforce compliance.