Freelance (sometimes spelled free-lance or free lance),[1] freelancer, or freelance worker, are terms

commonly used for a person who is self-employed and not necessarily committed to a particular employer long-
term. Freelance workers are sometimes represented by a company or a temporary agency that resells
freelance labor to clients; others work independently or use professional associations or websites to get work.

While the term independent contractor would be used in a different register of English[clarify] to designate
the tax and employment classes of this type of worker, the term "freelancing" is most common in culture and
creative industries, and use of this term may indicate participation therein. [2]

Fields, professions, and industries where freelancing is predominant include: music, writing, acting, computer
programming, web design, graphic design, translating and illustrating, film and video production, and other
forms of piece work that some cultural theorists consider central to the cognitive-cultural economy.[3]

Freelance practices
Types of work
According to the 2012 Freelance Industry Report compiled primarily about North America freelancing, nearly
half of freelancers do writing work, with 18% of freelancers listing writing as a primary skill, 10% editing/copy-
editing, and 10% as copywriting. 20% of freelancers listed their primary skills as design. Next on the list
was translating (8%), web development (5.5%), and marketing (4%).[4][5]

In 2018, freelancing was projected to grow to $20–$30 billion in the next 5–7 years in India,[6] and the
freelancers in the US will comprise 40% (approx.) of the workforce at the projected growth rate from the same
time.[7][needs update]

Compensation
Depending on the industry, freelance work practices vary and have changed over time. In some industries such
as consulting, freelancers may require clients to sign written contracts. While in journalism or writing,
freelancers may work for free or do work "on spec" to build their reputations or a relationship with a publication.
Some freelancers may provide written estimates of work and request deposits from clients.

Payment for freelance work also depends on industry, skills, experience and location. Freelancers may charge
by the day, hour, per piece, or on a per-project basis. Instead of a flat rate or fee, some freelancers have
adopted a value-based pricing method based on the perceived value of the results to the client. By custom,
payment arrangements may be upfront, percentage upfront, or upon completion. For more complex projects, a
contract may set a payment schedule based on milestones or outcomes. One of the drawbacks of freelancing
is that there is no guaranteed payment, and the work can be highly precarious. In order to ensure payment,
many freelancers use online payment platforms to protect themselves or work with local clients that can be held
accountable.

Copyright
The question of ownership of a work's copyright arises when its author produces it on behalf of a client. The
matter is governed by copyright law, which varies by country. The default ownership lies with the client in some
countries and with the freelancing author in others. The degree to which either moral or economic ownership of
a work for hire may be modified contractually varies by country.[8]

Demographics
The examples and perspective in this article deal primarily with Western culture and
do not represent a worldwide view of the subject. You may improve this article,
discuss the issue on the talk page, or create a new article, as appropriate. (July
2024) (Learn how and when to remove this message)
A 2018 McKinsey study found that up to 162 million people in Europe and the United States engage in some
form of independent work. It represents 20–30 percent of the entire working age population. [9]

The total number of freelancers in USA is inexact, as of 2013, the most recent governmental report on
independent contractors was published in 2005 by the U.S. Department of Labor Bureau of Labor Statistics. At
that time, there were approximately 10.3 million United States workers (7.4% of the workforce) employed as
independent contractors of all sorts.[10] In 2011, Jeffrey Eisenach, an economist at George Mason University,
estimated that number of freelancers had grown by one million.[citation needed] While in 2012, the Aberdeen Group, a
private research company, estimated that 26% (approx. 81 million) of the United States population was a part
of the contingent workforce, a category of casual labor that includes freelancing.[11]

In 2013, the Freelancers Union estimated that 1 in 3 workers in the United States was self-employed
(approximately 42 million), with more than four million (43%) of those self-employed workers as members of
the creative class, a stratum of work specifically associated with freelance industries, such as knowledge
workers, technologists, professional writers, artists, entertainers, and media workers.[12]

In 2016, the Freelancers Union estimated that 35% of the workforce in the United States was self-employed
(approximately 55 million). This workforce earned an estimated $1 trillion from freelancing in 2016—a
significant share of the U.S. economy.[13] In 2017, a study by MBO Partners estimated the total number of self-
employed Americans aged 21 and above to be 40.9 million.[14]

The total number of freelancers in UK is also inexact; however, figures from the Office for National
Statistics show that the proportion of remote workers rose from 9.2% in 2001 to 10.7% in 2011.[15] It has been
estimated, however, that there are approximately 1.7 million freelancers in the UK. [16]

Freelancing is a gendered form of work.[4] The 2012 Freelance Industry Report estimated that more than 71% of
freelancers are women between the ages of 30 and 50. Surveys of other specific areas of freelancing have
similar trends. Demographic research on Amazon Mechanical Turk revealed that the majority of its North
American workers are women.[17] Catherine McKercher's research on journalism as a profession has
showcased that while media organizations are still male-dominated, the reverse is true for freelance journalists
and editors, whose ranks are mainly women.[18]

Benefits
Freelancers have a variety of reasons for freelancing, the perceived benefits differ by gender, industry, and
lifestyle. For instance, the 2012 Freelance Industry Report reported that men and women freelance for different
reasons. Female survey respondents indicated that they prefer the scheduling freedom and flexibility that
freelancing offers, while male survey respondents indicated they freelance to follow or pursue personal
passions.[4] Freelancing also enables people to obtain higher levels of employment in isolated communities.
[19]
The ability to pick and choose who the freelancer works with is another benefit. The freelancer interviews a
potential client and they get to pick whether or not to work with that individual or company.

Freelancing is also taken up by workers who have been laid-off, who cannot find full-time employment, [4] or for
those industries such as journalism which are relying increasingly on contingent labor rather than full-time staff.
[20]
Freelancers also consist of students trying to make ends meet during the semester. In interviews, and on
blogs about freelancing, freelancers list choice and flexibility as a benefit.

Drawbacks
Freelancing, like other forms of casual labor, can be precarious work.[3] Websites, books, portals and
organizations for freelancers often feature advice on getting and keeping a steady work stream. [21] Beside the
lack of job security, many freelancers also report the ongoing hassle of dealing with employers who don't pay
on time and the possibility of long periods without work. Additionally, freelancers do not receive employment
benefits such as a pension, sick leave, paid holidays, bonuses or health insurance, which can be a serious
hardship for freelancers residing in countries such as the US without universal health care.[22]
Freelancers often earn less than their employed counterparts, although sometimes the opposite is true. While
most freelancers have at least ten years of experience prior to working independently, [4] experienced
freelancers do not always earn an income equal to that of full-time employment. Feedback from members
suggests that web portals such as [Link] tend to attract low-paying clients that, although demanding
very high standards, pay ~$10 per hour or less. Low-cost suppliers frequently offer to work at rates as low as
$1–$2 per hour. Because most projects require bidding, professionals will not bid because they refuse to work
at such rates. This has the effect of reducing the overall quality of the services provided.

According to research conducted in 2005 by the Professional Writers Association of Canada on Canadian
journalists and editors, there is a wage gap between staff and freelance journalists. While the typical Canadian
full-time freelancer is female, between 35 and 55, holding a college diploma and often a graduate degree, she
typically earns about $29,999 Canadian dollars before taxes. Meanwhile, a staff journalist of similar age and
experience level working full-time at outlets such as the Ottawa Citizen or Montreal Gazette newspapers,
earned at least $63,500 Canadian dollars that year, the top scale rate negotiated by the union, The Newspaper
Guild-Communications Workers of America.[20] Given the gendered stratification of journalism, with more women
working as freelancers than men, this disparity in income can be interpreted as a form of gender pay gap.
The Professional Writers Association of Canada report showed no significant difference between the earnings
of male and female freelancers, though part-time freelancers generally earned less than full-time freelancers. [23]

Remote work is often cited as an attractive feature of freelancing, yet research suggests that it introduces new
sets of constraints for the process of doing work, particularly for married women with families, who continue to
bear the brunt of household chores and childcare despite increases in their paid work time. [24][25] For instance,
three years of ethnographic research about teleworkers in Australia conducted by Melissa Gregg, a Principal
Engineer and Researcher in Residence for the Intel Science and Technology Center for Social Computing
at UC Irvine, raises concerns over how both physical isolation and continuous access enabled with networked
digital media puts pressure on homeworkers to demonstrate their commitments through continual responses by
email and to conceal their family or home life.[26]

Internet and online marketplaces

The Internet has opened up many freelance opportunities, expanded available markets, and has contributed to
service sector growth in many economies.[27] Offshore outsourcing, online outsourcing and crowdsourcing are
heavily reliant on the Internet to provide economical access to remote workers, and frequently leverage
technology to manage workflow to and from the employer. Much computer freelance work is being outsourced
to developing countries outside the United States and Europe. International freelancers use their skills in
English to enable greater pay and flexibility in their work.[28]

Freelance marketplaces provide a marketplace for freelancers and buyers. Service providers or sellers create a
profile where they include a description of the services they offer, examples of their work, and, in some cases,
information about their rates. Buyers register and complete a basic profile, and then post projects outlining their
requirements. Buyers will then bid for these projects on a fixed price or hourly basis. [29] Many of these websites
have user review sections that affect the reputation of freelancers who list there, and which may be
manipulated.[30]

Freelance marketplaces have globalized competition for some jobs, allowing workers in high- and low-income
countries to compete with one another.[31] According to a 2016 study by the McKinsey Global Institute, 15% of
independent workers used online marketplaces to find work.[32]

These marketplaces, including Fiverr and Lyft, have been criticized as exploiting workers.[33][34]

Legal aspects
See also: Independent contractor-employee distinction
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.[35]

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)[36] 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[37] 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 [38] 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,[39] 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.
[40]
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).[41]

Etymology
The term freelancer is commonly attributed to Sir Walter Scott (1771–1832) in Ivanhoe (1820) to describe a
"medieval mercenary warrior" or "free-lance" (indicating that the lance is not sworn to any lord's services, not
that the lance is available free of charge).[42] It changed to a figurative noun around the 1860s and was
recognized as a verb in 1903 by authorities in etymology such as the Oxford English Dictionary. Only in modern
times has the term morphed from a noun (a freelance) into an adjective (a freelance journalist), a verb (a
journalist who freelances) and an adverb (they worked freelance), as well as into the noun "freelancer".

Freelance (sometimes spelled free-lance or free lance),[1] freelancer, or freelance worker, are terms
commonly used for a person who is self-employed and not necessarily committed to a particular employer long-
term. Freelance workers are sometimes represented by a company or a temporary agency that resells
freelance labor to clients; others work independently or use professional associations or websites to get work.

While the term independent contractor would be used in a different register of English[clarify] to designate
the tax and employment classes of this type of worker, the term "freelancing" is most common in culture and
creative industries, and use of this term may indicate participation therein. [2]

Fields, professions, and industries where freelancing is predominant include: music, writing, acting, computer
programming, web design, graphic design, translating and illustrating, film and video production, and other
forms of piece work that some cultural theorists consider central to the cognitive-cultural economy.[3]

Freelance practices
Types of work
According to the 2012 Freelance Industry Report compiled primarily about North America freelancing, nearly
half of freelancers do writing work, with 18% of freelancers listing writing as a primary skill, 10% editing/copy-
editing, and 10% as copywriting. 20% of freelancers listed their primary skills as design. Next on the list
was translating (8%), web development (5.5%), and marketing (4%).[4][5]

In 2018, freelancing was projected to grow to $20–$30 billion in the next 5–7 years in India,[6] and the
freelancers in the US will comprise 40% (approx.) of the workforce at the projected growth rate from the same
time.[7][needs update]

Compensation
Depending on the industry, freelance work practices vary and have changed over time. In some industries such
as consulting, freelancers may require clients to sign written contracts. While in journalism or writing,
freelancers may work for free or do work "on spec" to build their reputations or a relationship with a publication.
Some freelancers may provide written estimates of work and request deposits from clients.

Payment for freelance work also depends on industry, skills, experience and location. Freelancers may charge
by the day, hour, per piece, or on a per-project basis. Instead of a flat rate or fee, some freelancers have
adopted a value-based pricing method based on the perceived value of the results to the client. By custom,
payment arrangements may be upfront, percentage upfront, or upon completion. For more complex projects, a
contract may set a payment schedule based on milestones or outcomes. One of the drawbacks of freelancing
is that there is no guaranteed payment, and the work can be highly precarious. In order to ensure payment,
many freelancers use online payment platforms to protect themselves or work with local clients that can be held
accountable.

Copyright
The question of ownership of a work's copyright arises when its author produces it on behalf of a client. The
matter is governed by copyright law, which varies by country. The default ownership lies with the client in some
countries and with the freelancing author in others. The degree to which either moral or economic ownership of
a work for hire may be modified contractually varies by country.[8]

Demographics
The examples and perspective in this article deal primarily with Western culture and
do not represent a worldwide view of the subject. You may improve this article,
discuss the issue on the talk page, or create a new article, as appropriate. (July
2024) (Learn how and when to remove this message)

A 2018 McKinsey study found that up to 162 million people in Europe and the United States engage in some
form of independent work. It represents 20–30 percent of the entire working age population. [9]

The total number of freelancers in USA is inexact, as of 2013, the most recent governmental report on
independent contractors was published in 2005 by the U.S. Department of Labor Bureau of Labor Statistics. At
that time, there were approximately 10.3 million United States workers (7.4% of the workforce) employed as
independent contractors of all sorts.[10] In 2011, Jeffrey Eisenach, an economist at George Mason University,
estimated that number of freelancers had grown by one million.[citation needed] While in 2012, the Aberdeen Group, a
private research company, estimated that 26% (approx. 81 million) of the United States population was a part
of the contingent workforce, a category of casual labor that includes freelancing.[11]

In 2013, the Freelancers Union estimated that 1 in 3 workers in the United States was self-employed
(approximately 42 million), with more than four million (43%) of those self-employed workers as members of
the creative class, a stratum of work specifically associated with freelance industries, such as knowledge
workers, technologists, professional writers, artists, entertainers, and media workers.[12]

In 2016, the Freelancers Union estimated that 35% of the workforce in the United States was self-employed
(approximately 55 million). This workforce earned an estimated $1 trillion from freelancing in 2016—a
significant share of the U.S. economy.[13] In 2017, a study by MBO Partners estimated the total number of self-
employed Americans aged 21 and above to be 40.9 million.[14]

The total number of freelancers in UK is also inexact; however, figures from the Office for National
Statistics show that the proportion of remote workers rose from 9.2% in 2001 to 10.7% in 2011.[15] It has been
estimated, however, that there are approximately 1.7 million freelancers in the UK. [16]

Freelancing is a gendered form of work.[4] The 2012 Freelance Industry Report estimated that more than 71% of
freelancers are women between the ages of 30 and 50. Surveys of other specific areas of freelancing have
similar trends. Demographic research on Amazon Mechanical Turk revealed that the majority of its North
American workers are women.[17] Catherine McKercher's research on journalism as a profession has
showcased that while media organizations are still male-dominated, the reverse is true for freelance journalists
and editors, whose ranks are mainly women.[18]

Benefits
Freelancers have a variety of reasons for freelancing, the perceived benefits differ by gender, industry, and
lifestyle. For instance, the 2012 Freelance Industry Report reported that men and women freelance for different
reasons. Female survey respondents indicated that they prefer the scheduling freedom and flexibility that
freelancing offers, while male survey respondents indicated they freelance to follow or pursue personal
passions.[4] Freelancing also enables people to obtain higher levels of employment in isolated communities.
[19]
The ability to pick and choose who the freelancer works with is another benefit. The freelancer interviews a
potential client and they get to pick whether or not to work with that individual or company.

Freelancing is also taken up by workers who have been laid-off, who cannot find full-time employment, [4] or for
those industries such as journalism which are relying increasingly on contingent labor rather than full-time staff.
 Freelancers also consist of students trying to make ends meet during the semester. In interviews, and on
[20]

blogs about freelancing, freelancers list choice and flexibility as a benefit.

Drawbacks
Freelancing, like other forms of casual labor, can be precarious work.[3] Websites, books, portals and
organizations for freelancers often feature advice on getting and keeping a steady work stream. [21] Beside the
lack of job security, many freelancers also report the ongoing hassle of dealing with employers who don't pay
on time and the possibility of long periods without work. Additionally, freelancers do not receive employment
benefits such as a pension, sick leave, paid holidays, bonuses or health insurance, which can be a serious
hardship for freelancers residing in countries such as the US without universal health care.[22]

Freelancers often earn less than their employed counterparts, although sometimes the opposite is true. While
most freelancers have at least ten years of experience prior to working independently, [4] experienced
freelancers do not always earn an income equal to that of full-time employment. Feedback from members
suggests that web portals such as [Link] tend to attract low-paying clients that, although demanding
very high standards, pay ~$10 per hour or less. Low-cost suppliers frequently offer to work at rates as low as
$1–$2 per hour. Because most projects require bidding, professionals will not bid because they refuse to work
at such rates. This has the effect of reducing the overall quality of the services provided.

According to research conducted in 2005 by the Professional Writers Association of Canada on Canadian
journalists and editors, there is a wage gap between staff and freelance journalists. While the typical Canadian
full-time freelancer is female, between 35 and 55, holding a college diploma and often a graduate degree, she
typically earns about $29,999 Canadian dollars before taxes. Meanwhile, a staff journalist of similar age and
experience level working full-time at outlets such as the Ottawa Citizen or Montreal Gazette newspapers,
earned at least $63,500 Canadian dollars that year, the top scale rate negotiated by the union, The Newspaper
Guild-Communications Workers of America.[20] Given the gendered stratification of journalism, with more women
working as freelancers than men, this disparity in income can be interpreted as a form of gender pay gap.
The Professional Writers Association of Canada report showed no significant difference between the earnings
of male and female freelancers, though part-time freelancers generally earned less than full-time freelancers. [23]

Remote work is often cited as an attractive feature of freelancing, yet research suggests that it introduces new
sets of constraints for the process of doing work, particularly for married women with families, who continue to
bear the brunt of household chores and childcare despite increases in their paid work time. [24][25] For instance,
three years of ethnographic research about teleworkers in Australia conducted by Melissa Gregg, a Principal
Engineer and Researcher in Residence for the Intel Science and Technology Center for Social Computing
at UC Irvine, raises concerns over how both physical isolation and continuous access enabled with networked
digital media puts pressure on homeworkers to demonstrate their commitments through continual responses by
email and to conceal their family or home life.[26]

Internet and online marketplaces

The Internet has opened up many freelance opportunities, expanded available markets, and has contributed to
service sector growth in many economies.[27] Offshore outsourcing, online outsourcing and crowdsourcing are
heavily reliant on the Internet to provide economical access to remote workers, and frequently leverage
technology to manage workflow to and from the employer. Much computer freelance work is being outsourced
to developing countries outside the United States and Europe. International freelancers use their skills in
English to enable greater pay and flexibility in their work.[28]

Freelance marketplaces provide a marketplace for freelancers and buyers. Service providers or sellers create a
profile where they include a description of the services they offer, examples of their work, and, in some cases,
information about their rates. Buyers register and complete a basic profile, and then post projects outlining their
requirements. Buyers will then bid for these projects on a fixed price or hourly basis. [29] Many of these websites
have user review sections that affect the reputation of freelancers who list there, and which may be
manipulated.[30]
Freelance marketplaces have globalized competition for some jobs, allowing workers in high- and low-income
countries to compete with one another.[31] According to a 2016 study by the McKinsey Global Institute, 15% of
independent workers used online marketplaces to find work.[32]

These marketplaces, including Fiverr and Lyft, have been criticized as exploiting workers.[33][34]

Legal aspects
See also: Independent contractor-employee distinction
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.[35]

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)[36] 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[37] 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 [38] 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,[39] 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.
[40]
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).[41]

Etymology
The term freelancer is commonly attributed to Sir Walter Scott (1771–1832) in Ivanhoe (1820) to describe a
"medieval mercenary warrior" or "free-lance" (indicating that the lance is not sworn to any lord's services, not
that the lance is available free of charge).[42] It changed to a figurative noun around the 1860s and was
recognized as a verb in 1903 by authorities in etymology such as the Oxford English Dictionary. Only in modern
times has the term morphed from a noun (a freelance) into an adjective (a freelance journalist), a verb (a
journalist who freelances) and an adverb (they worked freelance), as well as into the noun "freelancer".