Understand Classification
Last updated: July 24, 2026
In AOR engagements, Lifted’s Classification & Onboarding team will help determine the appropriate worker classification for talent before work begins.
Through our tech-assisted classification workflow, Lifted evaluates information provided by both your organization and the talent against relevant local law and standards and determines the appropriate worker classification for talent for the particular engagement.
Classification occurs as part of the contract workflow after a proposed contract is sent and must be completed before the engagement can continue through onboarding.
How Classification Works
Classification is a series of steps that occur in the contract workflow:
Your organization's assessment
Talent assessment
Classification review
Next-step routing
Depending on the assessment results, the engagement may be automatically classified or routed for additional review.
When Classification Is Required
Classification helps identify cases where the engagement type initially selected does not match how the working relationship is structured.
Classification is required when the engagement type selected on the contract is Agent of Record (AOR).
Selecting AOR does not guarantee that the engagement will proceed as AOR.
When AOR is selected:
If Lifted determines the engagement should proceed as AOR, onboarding continues.
If Lifted determines the engagement should be supported by an Employer of Record (EOR), the engagement will be routed to one of Lifted’s EOR partners to continue onboarding.
Your Organization's Assessment
During contract onboarding, your organization answers questions about the engagement. These responses provide context that helps determine the appropriate classification. The assessment may ask about how the work will be structured, such as:
Who provides direction, guidance, or oversight and to what degree.
Who decides the manner and means by which work is completed.
Who provides the tools and or equipment necessary to complete the work
Whether similar work is usually performed by employees, external contractors, or both.
How the work relates to your organization’s core business; and
Other factors that may impact a workers classification in a particular jurisdiction or circumstances.
Talent Assessment
The talent completes a separate assessment that may include:
Business verification documentation
Freelance business and/or work history, both through Lifted’s platform and elsewhere
Country-specific questions or documentation, where applicable
Additional information required to evaluate the engagement
The talent may be asked to provide information about how their business is structured, prior client work, business investments, or country-specific business registration details. Talent located in some countries may also be asked additional questions based on local requirements.
Classification Review
After both assessments are complete, Lifted evaluates the responses and can typically determine the appropriate classification based on those assessments alone. In some circumstances, additional review may also be required.
Additional Review
If the assessments do not produce a sufficiently clear result by themselves, the engagement is routed for additional review.
When this happens:
The engagement status displays Review required.
You and the talent are informed that additional review is in progress.
The final classification is not displayed until the review is complete.
Manual review helps ensure accurate classifications in situations where assessment results are inconclusive.
During additional review, Lifted reviews the assessment responses, contract details, and talent location. Based on the review, Lifted may:
Confirm the engagement type and move the talent to onboarding.
Confirm that the engagement type requires client follow-up.
Confirm that the engagement cannot be classified, which stops the engagement.
If a determination cannot be made after review, the engagement may be marked as Unable to classify.
Client Follow-Up
In some cases, the recommended engagement type requires products or services that are not currently available for your organization.
When this occurs:
The engagement enters Client follow-up.
Classification remains in a processing state.
Lifted contacts your organization to discuss available options.
Depending on the outcome, the engagement may continue with onboarding, move to a different engagement type if appropriate, or be closed.
After Classification
Once classification is complete, the contract proceeds through the appropriate onboarding workflow, either AOR or EOR.
Subsequent onboarding steps vary depending on the engagement type and talent location.
To learn more about onboarding, see 📄 Understand Talent Onboarding
Changing a Classification
Classification cannot be changed on an active contract.
If the engagement type needs to change after a contract has been created:
Duplicate the existing contract.
Close the original contract.
Complete the classification process on the new contract.
This approach helps preserve billing accuracy and maintains a complete audit history.
FAQs
Why is my contract marked as “Review required”?
The assessment results require additional review before a final classification can be determined. This helps ensure the engagement is classified correctly.
Why is business documentation required?
Business documentation is required to verify eligibility and support an accurate classification. We ask talent to provide sufficient documentation verifying their business before the assessment can continue.
Why are country-specific questions required?
Worker classification-related regulations and standards vary by jurisdiction. Additional questions may be required depending on where the work will be performed.
What happens if my organization does not have the required product or service?
The engagement enters the Client follow-up stage so your Account Team can discuss available options before the engagement proceeds.
Can I change the classification after the contract is active?
No. Active contracts cannot have their classification changed.
If a different engagement type is required, a new contract must be created by duplicating the existing contract and completing the classification process again or by choosing a different engagement type (e.g., IC).