Many periodicals and newspapers offer the option of ghost signing, when a freelance writer signs with an editor but their name is not listed on the byline of their article(s). This allows the writer to receive benefits while still being classified as a freelancer, and independent of any set organization. In some countries this can lead to taxation issues (e.g., so-called
IR35 violations in the UK). Ghost signing has little bearing on whether a writer is a freelancer or employee in the US. Freelancers often must handle contracts, legal issues, accounting, marketing, and other business functions by themselves. If they do choose to pay for professional services, they can sometimes turn into significant
out-of-pocket expenses. Working hours can extend beyond the standard working day and working week. The
European Commission does not define "freelancers" in any legislative text. However, the
European Commission defines a self-employed person as someone: "pursuing a gainful activity for their own account, under the conditions laid down by national law". In the exercise of such an activity, the personal element is of special importance and such exercise always involves a large measure of independence in the accomplishment of the professional activities. This definition comes from Directive (2010/41/EU) on the application of the principle of equal treatment between men and women engaged in an activity in a self-employed capacity. The European Forum of Independent Professionals defines freelancers as: "a highly-skilled subset of self-employed workers, without employers nor employees, offering specialised services of an intellectual and knowledge-based nature". Independent professionals work on a flexible basis in a range of creative, managerial, scientific and technical occupations; they are not a homogeneous group and as such, they cannot be considered or investigated as a whole. They are generally characterised by a large portion of autonomy, a high labour productivity, knowledge intensive performance, social commitment and a large dose of entrepreneurship and specialisation. In the U.S. in 2009, federal and state agencies began increasing their oversight of freelancers and other workers whom employers
classify as independent contractors. The U.S. Government Accountability Office (GAO) recommended that the Secretary of Labor have its Wage and Hour Division "focus on
misclassification of employees as independent contractors during targeted investigations." The increased regulation is meant to ensure workers are treated fairly and that companies are not misclassifying workers as independent contractors to avoid paying appropriate employment taxes and contributions to workers' compensation and unemployment compensation. At the same time, this increased enforcement is affecting companies whose business models are based on using non-employee workers, as well as independent professionals who have chosen to work as
independent contractors. For example, book publishing companies have traditionally outsourced certain tasks like indexing and proofreading to individuals working as independent contractors. Self-employed accountants and attorneys have traditionally hired out their services to accounting and law firms needing assistance. The U.S.
Internal Revenue Service offers some guidance on what constitutes
self-employment, but states have enacted stricter laws to address how independent contractors should be defined. For example, a Massachusetts law states that companies can hire independent contractors only to perform work that is "outside the usual course of business of the employer," meaning workers working on the company's core business must be classified as employees. According to this statute, a software engineering firm cannot outsource work to a software engineering consultant, without hiring the consultant as an employee. The firm could, however, hire an independent contractor working as an electrician, interior decorator, or painter. This raises questions about the common practice of consulting, because a company would typically hire a
management consulting firm or self-employed
consultant to address business-specific needs that are not "outside the usual course of business of the employer."
United States In the United States, where the federal constitution automatically grants ownership of the copyright only to the author, the contract agreement must explicitly use the language, that the product is "work for hire", and that the copyright is transferred to the client. Otherwise, only the freelancer will own the right to reproduce the work. Registration of copyright is not required for ownership of these rights; however, litigation against infringement may require registration, as documented in the class action lawsuit,
Reed Elsevier, Inc. v. Muchnick. In that case, freelance writers sued publishers for copyright violations, though the case was eventually settled for the benefit of freelance writers whether or not they had registered their copyright with the
Copyright Office. Copyright is rescinded only when a freelancer signs a contract specifying that they are "
working for hire," or if they are hired into employment. These rights are further specified in U.S. copyright law, Section 101 in the Copyright Act of 1976 (17 USC §101). == Etymology ==