Monday, July 05, 2010

HR: Employee Misclassification Prevention Act

Legislation has again been proposed to amend the Fair Labor Standards Act and require employers to notify all new employees and non-employees who do work for them of their employee classification status.  According to some authorities, it is a "sure-thing" for passage; a few others suggest it may depend on timing in terms of the November elections.  One thing is clear:  if it passes it will "stir up claims and litigation."

Comment:  This is sometimes tough to make clear.  I am absolutely 100% in favor of jobs being correctly classified.  Mis-classifications should be corrected and penalties, if deemed appropriate, should be levied.  However, the bottom line remains.  The Fair Labor Standards Act is incredibly outdated and fails to even come close to accurately provding a proper classification system for "jobs" in the 21st century.

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