As a global leader in providing on-demand access to over 65,000 independent experts and 1,000 boutique consulting firms, Catalant is taking an active role in helping our clients adapt to a shifting regulatory landscape. Catalant is fully prepared to support compliance with applicable legislation for clients that engage experts and firms through our platform. Below are answers to frequently asked questions and descriptions of the process for determining the appropriate classification of experts engaged by Catalant's clients with additional compliance requirements.
Does Catalant have a process for independent contractor compliance?
Catalant offers different compliance service levels to clients engaging with experts in Catalant’s Expert Marketplace. For clients who have signed an agreement with Catalant for additional compliance services, we perform worker classification assessments and background checks through a compliance partner. Projects for these clients and with these requirements are labeled in the Catalant platform with an "Additional Compliance Requirements" banner, as shown below.
How does Catalant’s compliance process work?
Catalant has engaged a compliance partner, GreenLight Workforce Solutions (“GreenLight”), to collect information from experts in order to perform a worker classification assessment. The worker classification assessment aims to determine whether that expert should be classified as an independent contractor or an employee for a given project, unless the selected expert has a business structure with three or more W2/full-time employees.
What are the possible outcomes of a worker classification assessment?
Our client requires a worker classification assessment to provide insight into your professional relationship. There are two possible outcomes of a worker classification assessment; you could be categorized as an independent contractor or you could be categorized as an employee to complete this work.
What is GreenLight?
As our compliance partner, GreenLight is responsible for performing worker classification assessments and facilitating background checks in accordance with our end-client requirements.
What information does GreenLight need from me?
During the course of a worker classification assessment GreenLight asks a series of questions focused on two key areas:
- Who controls how/when/where you will perform this project work?
- Are you performing this project work as an established legal business entity?
However, the results of the questionnaire may be inconclusive. Note that GreenLight's assessment approach is based on recent case law. With this in mind, GreenLight will ask you to provide documentation to indicate that you are completing this project work as an established business entity. Attached you will find a screenshot from GreenLight's platform, which shows the different documents you can provide to GreenLight as evidence of your business structure.
Let's walk through each document:
|Type of Document||Examples and Purpose of the Document|
|Certificate of Incorporation||This document proves that you have a legal business entity|
|Fictitious Business Name or DBA Statement||This document indicates that you are working as a legal business entity, and that the legal business entity may be popularly known as, and/or marketed under, another name|
|Certificate of Good Standing||Proves that your legal business entity is eligible to do business|
|Form 1099 (or local equivalent)||Proves that you have been paid as an independent business by other clients; proves that you are not financially reliant on Catalant client(s)|
|Other Documentation of Business Income||Example: bank statements or credit card statements. Proves that you are paid through your legal business entity|
|Marketing Materials||Example: website, LinkedIn profile, Catalant profile, etc. Proves that you work and market yourself as a business entity|
|Proof of Investment||Example: a bank or credit card statements; Prove that you have invested money in your legal business entity|
Note: In response to GreenLight's request for these documents, you can choose to 1) upload the document, 2) state that you don't have the document, or 3) opt to provide the document later. If you indicate that you are going to provide the document later, you must do so in the GreenLight platform before the engagement can be cleared to start.
What if I don't have the information GreenLight asks me to provide? What if I don't understand why they need this information?
Reach out to email@example.com for clarification. The GreenLight team is available to assist you with any questions or concerns related to your assessment, onboarding process or payments for this engagement.
What happens as a result of GreenLight's worker classification assessment?
GreenLight will notify you about the results of their assessment, and they will indicate next steps.
How can I scope a project to avoid misclassification?
When scoping a project, consider the nature of how you would engage with the client. Clients are asked the following questions as part of a worker classification assessment, and answering "yes" to any of the following questions may suggest that the selected expert for that work is more likely to be considered an employee rather than an independent contractor (unless they operate under a business entity with three or more payrolled full-time employees):
- Will your organization directly manage the expert and direct day to day tasks?
- Is the expert required to perform the project work himself or herself (as opposed to substituting or subcontracting to another worker)?
- Is the expert restricted from working with other clients during the project?
- Are there employees within your organization who do the same work as the expert?
As a reminder, worker classification assessments are not applicable for experts who operate under a business entity of three or more payrolled full-time employees.
Who will pay me?
GreenLight will ultimately act as your Agent of Record (AOR) or your Employer of Record (EOR). In either case, GreenLight will pay you for your project work after you have submitted a request for payment in the Catalant platform, and the client has approved your request for payment in the Catalant platform.
If you have any questions at all about this process, please don’t hesitate to reach out to the Catalant Compliance Team at firstname.lastname@example.org.