Minimizing Wage and Hour Risks With an Evolving On Demand Workforce

Description

More and more workers are joining the “gig economy,” forgoing a 9-to-5 job for income through a combination of freelancing, contracting, internships and on demand assignments. The ubiquity of smartphones and mobile apps allows individuals to remain connected and available for work around the clock, on schedules that suit the workers. Companies reap savings by reducing overhead expenses, including employment taxes and benefits.

Both on demand and traditional companies see benefits as well. While one on demand company has fewer than 4,000 employees, more than 160,000 individuals provide services to customers through its app. Another company in the computer industry directly employs only a small fraction of the one million+ individuals who help design, make and sell its products.

However, as classifications become more nebulous in a changing workforce, plaintiffs’ lawyers and federal and state agencies are taking notice and an increasing number of lawsuits have been filed against on demand companies by workers alleging violations of federal and state labor laws. The DOL expressed the position that most workers qualify as employees under the FLSA, in guidance that is widely perceived to target companies using on demand workers. A federal court in California recently allowed a lawsuit filed by on demand drivers to proceed as an employment class action.

Listen as our distinguished panel of employment law attorneys evaluates the risks both traditional and app-based companies face when their workforce includes on demand workers, freelancers, interns or contractors. The panel will describe potential areas of liability exposure and explain strategies to avoid or minimize liability and potential claims.