In HR Dive, Haynes and Boone, LLP Partner Adam Sencenbaugh explains how changes in the modern workplace are putting compliance pressure on the 80-year-old Fair Labor Standards Act (FLSA).
Sencenbaugh talked about the rise of independent contractors.
Here is an excerpt:
It’s been predicted that 60 percent of the workforce could be independent professionals by 2027. In light of this trend, lawmakers are considering whether the worker classification system needs revising to protect workers in the gig economy. Officials have discussed everything from health coverage to unemployment insurance and retirement plans for gig workers.
The growth of new work forms could have residual effects, perhaps including the draining of federal and state tax revenues, Adam Sencenbaugh, a partner in the Austin, Texas, office of Haynes and Boone, told HR Dive in an email. Sencenbaugh said this may result in greater scrutiny of worker misclassification issues, and potentially spur other change: "This could result in more robust enforcement and perhaps a narrowing of exemptions under the FLSA."
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