The head of the House workforce committee today told an audience of innovators that she would be open to updating the Fair Labor Standards Act to better serve the gig economy.
“This outdated regulatory structure is complicated enough for most American workers and employers. But for those in the sharing economy, it simply doesn’t make sense,” said Education and the Workforce Committee Chairwoman Virginia Foxx (R-N.C.). “It’s like trying to fit a square peg in a round hole. The self-employed individuals who rely on the sharing economy for work don’t fit neatly into obsolete job categories defined in another era.”
Foxx was one of the guest speakers at the New American Jobs Summit in Washington. Her comments come amid calls for the federal government to tweak employment tax and worker classification laws in response to the booming on-demand economy.
Gig workers are often treated as independent contractors who usually aren’t offered benefits and don’t get minimum wage, overtime and workers’ compensation protections.