ADP acquires startup for independent contractors

ADP has announced the acquisition of WorkMarket, a New York cloud-based workforce management startup.

Founded in 2010, WorkMarket serves the ever-increasing number of independent contractors in today’s workforce, otherwise known as the gig economy.

While ADP is known for its workplace research and payroll/legal services, usually servicing larger companies with a robust in-house staff, WorkMarket facilitates some of the more complicated paperwork for freelancers.

“WorkMarket allows us to provide ready access to a growing contingent labor pool and the tools to manage and pay them in a secure, efficient and compliant manner,” ADP CEO and President Carlos Rodriguez said. “WorkMarket is a proven expert in freelancer management. We are thrilled to welcome their team to ours and to leverage our global footprint and bring scale to their expertise and technology.”

According to ADP’s own research, 80 percent of U.S. businesses already rely on independent contractors, and the number of contingent workers as part of the overall workforce is growing. This freelancer-heavy system is thought to cut labor costs.

Since its founding, WorkMarket has already received backing from Union Square Ventures, Spark Capital and Foundry Group, as well as Accenture Ventures.

“The WorkMarket team is thrilled to be joining ADP,” said Jeff Wald, co-founder and president of WorkMarket. “We share the same vision of enabling companies and workers alike to navigate the changing labor marketplace with greater ease, and we look forward to offering our solutions to ADP’s vast client base.”