Hiring the right people has always been a challenge for small businesses.

And with the new White House administration introducing major changes to employment law, it could get even trickier.

One of the biggest shifts is the potential reclassification of independent contractors. If passed, these changes could mean businesses must either provide benefits to gig workers and freelancers or rethink their hiring model altogether.

If your business relies on contractors, gig workers or part-time employees, now’s the time to review your hiring strategy to stay compliant and cost-effective.

To help you to navigate these changes, here’s a breakdown of different hiring options and how they fit into today’s evolving legal landscape.

1. Full-time employees
• Work a standard number of hours per week (typically 35-40).
• Eligible for company benefits like health insurance, retirement plans and paid time off.
• Placed on employer’s payroll as a W-2 employee.

2. Part-time employees
• Work fewer hours than full-time employees, typically 30 hours or less, depending on employer policy and state laws.
• May have limited or no access to company benefits.
• Placed on employer’s payroll as a W-2 employee.

3. Temporary employees
• Hired for short-term assignments or seasonal work.
• Often employed through staffing agencies and may not receive company benefits.

4. Independent contractors (1099 workers) [potentially affected by new laws]
• Provide specific services under a contract and maintain control over how tasks are performed.
• Not eligible for company benefits; responsible for their own taxes and insurance.

5. Interns
• Individuals, often students or recent graduates, seeking practical experience.
• Must be compensated according to labor laws, unless they meet criteria for unpaid internships.

6. Freelancers [potentially affected by new laws]
• Similar to independent contractors but typically work with multiple clients.
• Engaged for specific projects or tasks; not entitled to employee benefits.
• May be subject to reclassification depending on how frequently they work for your business.

7. Consultants
• Experts hired to provide specialized advice or services.
• Engagements can be short- or long-term but are typically project-based and not part of daily operations.

8. Apprentices
• Individuals in a structured training program that combines work and study.
• Often used in skilled trades; may receive wages and, upon completion, certification.

9. Volunteers
• Individuals offering services without monetary compensation.
• Common in non-profits, but businesses must ensure compliance with labor laws to avoid misclassification.

10. Gig workers [potentially affected by new laws]
• Perform on-demand tasks or projects, often facilitated by digital platforms.
• Typically classified as independent contractors and not entitled to employee benefits.
• Upcoming changes could require businesses to reclassify gig workers, potentially increasing costs and compliance requirements.