Shortage Solutions 10: Contract or Employment

Can you believe this blog has covered 10 ideas for addressing the shortage? Time flies. Having given the whole court reporting shortage issue some more brainstorming, it’s worth bringing up for discussion the solutions that will follow. As always, happy to have comment on this issue. First, contractual agreements. In the field today, many reporters work under a verbal agreement, or a very informal email or rate sheet agreement. Even in places where independent contractors are required to have contracts, much of the business is contracted verbally or less formally.

Anecdotally, there’s something respectable about putting things in writing. People are more likely to live up to their word when there are clear terms of engagement. Need a freelancer to be on call to cover? Get it in writing. Throw them a little consideration (money) for their availability. Create easy-to-understand terms and expectations on availability. Create fair and realistic penalties for breach of contract on either side, or remedial terms that both sides can live with.

That lets me move on to another thought process. There is nothing in US law, to my knowledge, that prohibits a company from hiring employees and paying them a per-page commission or per diem rate. Pretty much no reporter makes less than minimum wage, so compliance with minimum wage laws is trivial. What is stopping a company from shifting its workforce from 1099 reporters to employees? Nothing. Nothing but a different set of paperwork and some accounting changes. Compliance with workers compensation laws may need a little creative insuring to allow reporters to transcribe from home if they choose to give employees that option. But this does not seem like an impossibility, merely a challenge for the entrepreneurial to overcome.

Why these solutions? Frankly, one of the issues with shortage boils down to the inconsistency of freelance reporting. If reporting firms nail down some availability, via employment contract or independently-contracted agreement, they can have a more realistic idea of how many reporters they have versus how many they need. Businesses survive and thrive off of mastering their staffing needs. Reporting businesses will be no different, and in the end will rise and fall based on their ability to meet demand. In this case, the demand being the service that so many stenographic reporters are ready, willing, and able to provide.

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