As businesses continue to shift to virtual work solutions and give employees greater flexibility to work from anywhere, the lines between independent contractors and employees has become blurred, triggering Fair Labor Standards Act (FLSA) litigation.
Jim Evans, partner in Alston & Bird’s Labor and Employment Group in Los Angeles, explains that employers have incentives to characterize workers as independent contractors. These incentives include reducing costs through lower overhead and administrative costs, such as employment taxes, worker’s comp costs, benefits, overtime and expense reimbursements.
Click here to read the full article and Evans’s comments in FLSA Litigation Tracker (PDF reproduced with permission from FLSA Litigation Tracker, (Aug. 28, 2015). Copyright 2015 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com).