Workforce Classification Risk.
Continuous, not annual.
Leah analyzes worker engagements, contract terms, and control factors against ABC, IR35, and EU Platform Workers Directive tests. Misclassification risk surfaced and remediated before tax authorities or tribunals catch it.
Classification is a continuous obligation. Most enterprises treat it as an annual one.
Annual audits leave eleven months of exposure
Most enterprises classify once a year, then hope. Engagements drift, control factors change, and contractor populations grow between audits. By the time the review comes around, the exposure is already booked and the back wages clock has been ticking for months.
ABC and IR35 tests applied inconsistently
Different reviewers, different jurisdictions, different interpretations of the same control factors. One engagement passes the ABC test in California, an identical one fails in Massachusetts. Defensibility collapses when classification logic cannot be reproduced from the evidence.
Gig and contractor populations grow faster than HR can track
Procurement onboards a contractor, the business unit extends the engagement, the contract auto-renews. HR finds out at year end. Contingent workforce growth outpaces the systems built for W-2 headcount, and the riskiest population becomes the least visible.
Tax authorities catch issues before legal does
IRS, HMRC, and EU labour inspectorates are running their own pattern detection on payroll filings, 1099 ratios, and worker complaints. When the audit notice arrives, the company learns about the misclassification from the regulator, not from internal counsel. By then the penalties are already calculated.
Cross-jurisdiction rules diverge
The ABC test in the US, IR35 in the UK, and the EU Platform Workers Directive each define employment differently. A worker compliant in one country can trigger reclassification in another. Multinational enterprises end up applying the strictest standard everywhere, or the loosest, neither defensible at scale.
Remediation costs balloon when the issue is found late
Caught early, a reclassification costs the differential in payroll taxes and benefits going forward. Caught late, it adds back wages, statutory penalties, interest, class action exposure, and reputational damage. The remediation curve is exponential, and the slope steepens after the first complaint is filed.
Every contractor, gig worker, and consultant in one ledger
Leah ingests engagement data from your AP system, contractor management platform, MSP, payroll, and contracts repository. Every active and historical engagement is structured into a single inventory with control factors, contract terms, payment patterns, and tenure all attached.
“We thought we had eight thousand contractors. Leah surfaced almost twelve thousand active engagements once she stitched the VMS, AP, and contract data together. The gap was the risk.”
CHRO, Industrial Manufacturer
Five steps to continuous classification across every engagement
Leah integrates with the systems you already run. No rip and replace. Value from the first engagement reviewed.
Connect
Leah integrates with your VMS, MSP, AP, payroll, and contract systems. Engagements, payments, and contracts flow into the classification layer without disturbing the source systems.
Inventory Workers
Every contractor, consultant, and gig worker is resolved into a unified ledger. Duplicates merged across systems, control factors extracted from contracts, tenure and payment patterns tracked continuously.
Apply Tests
Leah runs ABC, IR35, EU Platform Workers Directive, and common law tests against each engagement based on jurisdiction. Reasoning is linked to evidence and reproducible on demand.
Score Risk
Per-engagement results are combined with portfolio patterns to produce tiered risk scores. The engagements that compound exposure fastest are surfaced first.
Recommend Remediation
Each flagged engagement gets a costed remediation path: reclassify, restructure, or sunset. Decisions, approvals, and evidence are logged for audit defensibility.
Got Questions? Get Answers.
Annual audits give you a point-in-time snapshot. Engagements, contracts, and control factors drift continuously between audits, and the riskiest changes happen in the gaps. Leah runs the same tests outside counsel applies, but does it continuously and on every engagement, with reasoning and evidence attached. Outside counsel still owns the judgement calls on edge cases. Leah handles the volume so counsel can focus on the engagements where judgement actually matters.
No. Leah operates on top of your existing VMS, MSP, AP, payroll, and contract systems. The engagement records continue to live where they live today. Leah reads from those systems, runs the classification logic, and writes back risk scores, flags, and remediation recommendations. There is no replacement of operational systems, and no disruption to contractor onboarding workflows.
Each test is implemented as its own framework with its own factors and evidence requirements. Leah determines which framework applies based on worker location, employer entity, and contract governing law, then runs the relevant tests in parallel. A worker engaged in the UK gets the IR35 evaluation. A worker engaged in California gets the ABC test as adopted in California. A platform worker in Spain gets the EU Directive evaluation. Where multiple frameworks apply, all results are surfaced with the strictest outcome highlighted.
Leah surfaces the ambiguity rather than forcing a confident answer. Each test factor is reasoned with the supporting evidence, and where the evidence is mixed or insufficient, the result is flagged for human review with the specific gaps identified. Counsel reviews the ambiguous cases with the workpapers already prepared, instead of building the analysis from scratch. The volume of cases that genuinely require judgement is small once the clear-cut engagements are handled automatically.
Most enterprises see the full contingent workforce inventoried within thirty days of integration, with initial classification testing complete shortly after. Risk patterns and exposure quantification typically emerge within sixty to ninety days, depending on the volume of engagements and the depth of historical contract data available. Remediation recommendations are generated as soon as risk scoring is complete, so action can begin while the broader portfolio review is still underway.
Yes. Leah is deployed by industrial manufacturers, logistics providers, and professional services firms with strict data security requirements. Engagement and contract content does not train Leah's underlying models. Customer data is encrypted in transit and at rest. SOC 2 Type II, GDPR, CCPA, and ISO 27001 aligned. Private instance deployment is available for customers with strict data residency or isolation requirements.
