HC Insight: Compliance rules keep changing, solutions move faster to cover the risk.
The White House cleared a new contractor rule, Illinois proposed equal pay for temps, and Upwork announced it is acquiring an EOR. Tony Buffum on why the flexible workforce has never been safer.
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Here's what stands out this week:
- The rules moved, from every direction. The White House cleared the Labor Department's new independent contractor rule.[1] Illinois proposed equal pay and benefits for temps.[2] Texas barred companies that employ H-1B workers from some state grants.[3] And today, Australia's High Court ruled that Uber pays its drivers wages and owes an $81M payroll tax bill.[4]
- EORs and platforms are adding compliance. Lifted, an Upwork company, announced its acquisition of WorkMotion, a leading employer of record.[5] Safeguard Global presented to our community on how they work with sourcing solutions.[6] Deel created Deel Talent, which connects companies with vetted staffing and recruiting agencies inside its platform.[7] And workforce solutions startups raised $9.9B through September.[8]
- PE is building flexible teams across the portfolio. At PEI, one firm had about 100 AI roles across its portfolio. About 40 were full-time. The rest were contractors.
Here's my interpretation of the data:
- The rules will keep moving, and it's up to you to build a layer that moves with them. Last year I wrote that the will-it, won't-it of the $100K H-1B fee is what pushes organizations to install a flexible talent layer.[9] This week it happened in four places at once.[1][2][3][4] You can't re-org every time a rule changes. You can adjust a flexible layer in days.
- The flexible workforce has never been safer, and it will only get safer. Classification, payroll, and visas used to be your risk to carry. Now EORs and platforms carry it, and the biggest players are building and buying more of it.[5][6][7][8] That money is building the safety layer: employment, classification, and compliance in every market. The risk that kept flexible talent out of the plan is being engineered out.
- PE shows us what's possible when you take an org-wide approach. The best operating partners don't solve talent one company at a time. They build one bench and share it across the portfolio. Any enterprise can do the same across its business units.
Here's how Human Cloud is helping:
As you hopefully know, we not only lead the conversations to help you get started, we're your honest broker helping you find the right solutions.
Whether it's an EOR, or a specialized developer sourcing solution, we're the neutral advisor that helps you scale your flexible workforce.
- If you need to learn more or gain leadership buy in, book an executive briefing »
- Or if you're in Arlington on November 9, request an invite to our healthcare staffing dinner »
Here's to making the world work!
- Tony
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Tony Buffum Co-Founder & Chief Strategy Officer at Human Cloud. 20+ years in global HR and talent transformation. Former CHRO at FLIR Systems, VP HR at Stanley Black & Decker, VP HR Client Strategy at Upwork. Grab time with me » |
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Industry News
The rest of what I'm reading this week.
The rules keep moving
| • | Federal actions take a severe toll on H-1B petitions, CRS finds - SIA, Nov 3 |
| • | Colorado's draft AI rules preview new employer duties in hiring - National Law Review, Nov 3 |
| • | EEOC signals a rollback of Pregnant Workers Fairness Act rules - HR Dive, Nov 3 |
| • | Proposed Dutch freelancer law sparks concerns over a three-client rule - IamExpat, Nov 4 |
| • | China's 18-point AI rulebook requires advance notice of AI-driven job cuts - MSN, Nov 2 |
The safety layer is getting built
| • | Upwork's Q3 earnings rise and it raises 2026 guidance - Yahoo Finance, Nov 3 |
| • | Workday acquires C1.ai to manage access for AI agents - Small Business Trends, Oct 30 |
| • | Fronted raises a $1.94M seed to automate cross-border hiring - Dealroom, Oct 28 |
AI is reshaping headcount
| • | Canva cuts or relocates about 22% of its workforce - Bloomberg, Nov 3 |
| • | Disney eyes thousands of layoffs and asks managers to target 20% savings - New York Post, Nov 3 |
| • | NICE cuts 500 jobs as AI reshapes customer service - HR Katha, Nov 3 |
| • | 72% of US business leaders foresee layoffs in the next year - SIA, Nov 2 |
| • | AT&T and Verizon cut about 8,000 jobs in a quarter - Light Reading, Oct 30 |
| • | Goldman says AI layoffs leave a long-lasting scar on workers - Yahoo Finance, Oct 30 |
| • | Employee engagement hits a 15-year low, Gallup finds - HR Dive, Nov 3 |
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Sources
[1] Bloomberg Tax: White House clears Labor Department's gig worker status standard
[2] Staffing Industry Analysts: Rules on equal pay, benefits for temps proposed in Illinois
[3] KPRC Click2Houston: Texas rule bars businesses with H-1Bs from some TDA grants
[7] Deel: Deel Talent, talent sourcing through a vetted network of staffing and recruiting agencies
[8] Staffing Industry Analysts: Workforce solutions startups raise $9.9B through September
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