Global employment platform offers misclassification insurance with coverage up to $500,000

Remote-First Company/SAN FRANCISCO--(BUSINESS WIRE)--#HR--Oyster, the global employment platform to hire, pay, and care for distributed teams, today launched Oyster Shell, giving companies an additional layer of protection from potential contractor misclassification risks. Now, when organizations hire contractors on the Oyster platform, they have the option to enroll in contractor misclassification insurance for coverage up to $500,000.

Hiring contractors is a practical solution for businesses seeking highly specialized or project-based work, looking to test or enter new markets, or expanding headcount quickly to meet goals or demand. In the U.S. alone, recent research found that more than two-thirds of managers (67%) expect to hire contract workers this year. Yet with the advantages that hiring contractors offers, most companies remain rightfully concerned about misclassification risks and related fines and penalties.

"Organizations need access to the right information to make informed decisions when expanding their global workforce. Properly classifying workers as employees or contractors is critical to determining the rights and responsibilities for both the worker and employer," said Miranda Zolot, General Counsel at Oyster. "Created in response to customers looking for extra protection and peace of mind, Oyster Shell ensures HR teams aren't unknowingly putting their company or their people at risk when being flexible with their talent strategies."

Oyster enables compliant and competitive hiring in more than 180 countries. Global businesses turn to Oyster for its localized insights, in-house legal and HR experts, and dedicated local partners who understand the nuances of every country and jurisdiction. This deep compliance knowledge is built into the platform and made widely available via Oyster's Global Employment Tools, including the Misclassification Analyzer. Anyone can access the Misclassification Analyzer and act with knowledge on whether to engage someone as a contractor or full-time employee based on their risk level. By answering a few quick questions, the tool helps determine if a contractor is at a high, moderate, or low risk of misclassification in their particular jurisdiction.

Best Practices: Classifying Contractors vs. Full-Time Employees

With a myriad of laws and regulations to comply with, employers must understand what defines a contractor versus a full-time employee. While the specifics may vary between roles and regions, Zolot shares some foundational guidelines to help determine how to classify workers:

• Business Intent: What is the reason for hiring this person? If they were hired to accomplish a specific task or project, they might be a contractor. But if their role is to provide ongoing operational support, then they're likely an employee.
• Duration: What is the duration of the task this person is being hired to do? Perhaps they are filling in temporarily or supplementing staff during a seasonal rush. Specified durations typically indicate a contractor, whereas workers who are brought on indefinitely are more likely employees.
• Control: How much control or supervision does the company have over this worker? If they are told specifically where and when they must work, that is an indication of an employee rather than a contractor. Also, if they are limited to providing services exclusively to your company, it makes them more likely to be considered an employee.
• Integration: How deeply integrated is this person in the organization? Do they have a corporate email address and systems access identical to full-time employees? Are they included in company social events or regular meetings? The more integrated into the daily workings of your business a contractor is, the more likely they should be classified as an employee.

"There doesn't have to be a choice between an employee- or compliance-centric culture. When a company keeps compliance top-of-mind, that company is prioritizing its people," Zolot continued. "With the right tools and technology, organizations can utilize a smart mix of employees and contractors while providing a great work experience and remaining compliant in any country or jurisdiction where they hire."

For more information about Oyster Shell, visit

About Oyster

Oyster is a global employment platform that empowers companies to hire, pay, and care for their global teams. It enables growing companies to give valued international team members the experience they deserve, without the usual headaches or expense. Oyster enables people-centric hiring anywhere in the world with reliable, compliant contracts, payroll, and great local benefits and perks. Founded in January 2020 by Tony Jamous and Jack Mardack, Oyster is itself a fully distributed company with a diverse, global team. For more information visit

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