A recent case highlights the fact that the Fair Labor Standards Act (FLSA) could use an update to reflect modern business strategies and ensure staff members receive compensation for their time and attendance, according to an article penned by attorney Diane Geller of the Fox Rothschild law firm that was published in the Staffing Stream.

The issue stems from employers' use of crowdsourcing to get jobs done, the article explains. Rather than hiring employees to complete various tasks, companies can use online platforms to post listings when jobs need to be completed. The work is broken up into a series of small tasks and participants, who are considered independent contractors, can complete them on an ad-hoc basis for various forms of compensation. Some receive points or online game credits, while other postings are paid with cash.

A lawsuit that was filed against Crowdflower Inc., alleges that this agreement may not adhere to the FLSA's requirements for appropriate payment, the source adds. The case challenges the relationship between employers and the contracted workers, explaining that they should receive minimum wage for the work they perform.

Because the document was drafted in 1938, there are questions about whether all of its provisions are still appropriate for today's workplaces.

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