What’s Ahead This Year: A Look At 2023 Industry Trends

Industry Information | February 10, 2023

Staying in the know about the latest changes that may impact your industry helps you to stay compliant and adjust to any changes. At PlusOne Solutions, we are looking ahead at these 2023 industry trends for the contractor compliance industry.

As we begin a new year, we examine the contractor compliance industry changes that are taking place so that we can offer our customers the best service possible to meet their needs. Here are a few trends we are monitoring closely.

Independent Contractor Definitions

In October 2022, the U.S. Department of Labor proposed a new rule that would classify many independent contractors as employees if they are dependent on the company they currently contract with. This rule may affect companies that work with contractors to perform services for their customers. 

Since most federal and state labor laws concerning minimum wage and overtime pay only apply to employees, reclassifying independent contractors can cost companies up to 30% in healthcare and retirement benefits as well as paid time off and other expenses that currently only apply to employees.

This reclassification could affect the contractor compliance industry because organizations may have to examine the functions of the contractors in their network and whether tasks and services they accomplish would need to be reallocated to an in-house employee to stay compliant with state and federal labor laws.

In-Home Service Industry Growth

The supply chain disruption and shelter-in-place orders that started in 2020 as a result of the COVID-19 pandemic created a backlog of appliance repairs. More people were staying home and using their appliances. Those appliances still needed repairs, but repair technicians couldn’t enter the homes to perform those repairs until recently and repair parts were hard to find. This explains the current surge in appliance repair calls.

Plumbers, handyman services, landscaping, and more are in high demand. Background screening services like those we offer at PlusOne Solutions are becoming more important to ensure that homeowners can feel safe letting contractors in to do the task they are providing on behalf of your organization, especially as more individuals get into offering these services. 

Rescreening 

It’s common to screen contractors when they join your contractor network, but it’s becoming more important to rescreen them periodically throughout your relationship with them to ensure that they are still representing your company appropriately. Rescreening will protect your reputation and give you more insight into the activity of the individual. The expectation for companies to take responsibility for customer safety will be even greater as solutions like this grow in popularity, and rescreening could soon become an expectation.

Changes In Drug Testing

We’ve seen many changes to drug laws over the last decade. More states have adopted legalized medicinal and/or recreational marijuana use which means you may need to update your drug testing policies. Laws differ from state to state, so you’ll need to refer to your particular state’s guidelines, but in general, here are the 2023 industry trends we’re seeing regarding drug screening:

Drug testing – Some states and cities have banned pre-employment drug testing for marijuana. 

Criminal Background Checks – Charges for marijuana-related offenses continue to evolve. President Biden’s recent issuance of mass expungement for those convicted of marijuana possession may indicate a shift in the federal viewpoint on the illegality of the drug. 

Policies and Procedures – Your organization must be proactive in updating its policies and procedures so that your employees and contractors know what your rules are. Regardless of the state and local laws in your jurisdiction, many organizations opt for a zero-tolerance policy toward employees and contractors being under the influence of any illegal drugs or alcohol. Maintaining policies like this can keep workplaces safer, help to avoid dangerous accidents, and protect your customers and the reputation of your organization.

At PlusOne Solutions, we will continue to offer the highest level of compliance services to our customers while we keep up with 2023 industry trends and beyond. Contact us today to find out how we can be of service to your business.

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.

About PlusOne Solutions

PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.