What similarities and differences exist regarding how a contingent worker is compensated? Discuss how the economic reality test and the right to control tests are used to determine whether a person is an employee or an independent worker Solution Contingent workforce includes a non-permanent group of workers. They are known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants. Contingent workers are paid on the basis of working hours, and completion of project. Difference between contingent workers and non-contingent workers is that working rate per hour of contingent workers are high. The economic reality test is used by the U.S. Department of Labor and the Social Security Administration and thus is very important for FLSA and Social Security tax purposes. In 2010, DOL issued a notice of proposed rulemaking indicating that it will amend its recordkeeping requirements to require employers to conduct an analysis of any position for which the worker is not counted as an employee, showing that under the economic reality test, the worker is not in the company\'s employment. In addition, the company will have to show that it informed each such worker of its analysis and of the worker\'s rights under the FLSA. .