"We don’t want work to be what government defines it as. We want people to be able to work in the way they choose," stated employment policy expert Austen Bannan during a recent episode of the American Potential podcast. The discussion centered around how outdated labor regulations restrict workers' freedom in today's evolving economy.
As the labor market undergoes rapid transformation due to social and technological advancements, many existing laws fail to meet the needs of modern American workers. The Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA), designed for a 1930s workforce, are now considered inadequate for today's diverse employment landscape.
In contrast to the industrial economy these laws were created for, today's workforce is characterized by technology, services, and gig economy roles that offer less physical risk and more variability. The COVID-19 pandemic accelerated changes in work preferences, leading over 70 million Americans into freelancing or independent contracting.
Post-pandemic shifts have redefined perceptions of work flexibility among millions of workers. Despite this evolution, regulatory efforts have focused on reclassifying freelancers as traditional employees, potentially limiting their flexibility.
New legislation at both state and federal levels imposes stricter regulations on companies employing contractors who must classify themselves as full-time employees. This situation can reduce worker flexibility and increase costs for businesses, sometimes making it unsustainable to retain such workers.
Proponents argue that full-time employment benefits workers; however, surveys indicate that those opting for non-traditional arrangements largely prefer them. A Bureau of Labor Statistics survey conducted pre-pandemic revealed that eight out of ten independent contractors would not return to traditional jobs if given a choice.
The current labor market demands adaptability in legal frameworks. Employment has evolved significantly, necessitating an update in corresponding laws from past eras.
Listeners can access Austen's complete podcast on American employment's changing landscape online.
