<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1557350231232256&amp;ev=PageView&amp;noscript=1">

AB-5 Brings More Legal Battles For Gig Economy Businesses

There has been an ongoing fight over how to define employees for the past few decades.  As technology has re-shaped the workforce, this fight has gotten more intense.  State and federal governments have struggled to set clear lines dividing independent contractors from employees for a number of purposes, including taxation and the application of workplace benefits.  These benefits and taxes add on average 20% to 30% to the cost of hiring and paying a worker.

Avoiding Expensive Wage And Hour Litigation As Overtime Rates Are Solidified

 

The Fair Labor Standards Act sets national standards for wage and hour issues related to employees. The law empowers the Department of Labor to set eligibility standards for overtime pay as well as a series of exemptions for it. Employees who qualify for overtime under the law receive time-and-a-half pay for hours worked more than forty hours a week. Time-and-a-half pay is a 50% increase to the employee’s “regular rate of pay.”