Businesses in the gig economy, such as Uber and Deliveroo, would have to pay more tax under proposals from a review commissioned by the government which also called for a crackdown on cash-in-hand payments.
But Neil Carberry, CBI managing director for people and infrastructure, said: "Changes to the application of the minimum wage, rewriting employment status tests and altering agency worker rules could have unintended consequences that are negative for individuals, as well as affecting firms' ability to create new jobs".
Deliveroo said the review was a chance to make the law "fit for the 21st century" but warned that "any moves to restrict flexibility could undermine the very thing that attracts people to work in this sector".
"We know drivers want more security too which is why we're already investing in discounted illness and injury cover, and will be introducing further improvements soon", he said.
Gig economy companies around the world have insisted they can not pay the minimum wage per hour without stripping workers of the right to "log on" to work whenever they want. Taylor set out seven "principles for fair and decent work", including additional protections for workers suffering unfair, one-sided flexibility.
"What is needed is one category which affords all workers all employment rights from day one of their contracts starting".
"Changes to the classification of participants in the gig economy and application of the minimum wage could have negative unintended consequences for individuals who value the choice and flexibility working in such a way provides", he said.
"The status of "dependent contractor" should have a clearer definition which better reflects the reality of modern working arrangements, properly capturing those more casual employment relationships that are on the increase today", the review says.
However, the Taylor review does not suggest a guaranteed minimum wage for all workers and recommends an opt-in system that removes workers' right to redress not being paid the minimum wage. The Taylor review suggests that such workers should be reclassified as "dependent contractors" and given similar rights to regular employees.
Nearly exactly a year ago, driven by her now-departed adviser Nick Timothy, blue-collar Conservativism was the big pitch: her first speech stressed the issue of "job security" and an "economy that works for everybody" to tempt Labour voters.
"If they were serious about workers' rights they are welcome to borrow from Labour's manifesto", said Rebecca Long-Bailey, Labour's business spokeswoman. However, companies would need to show that it was indeed possible to easily earn a living wage via their platforms.
What we have instead is talk of a "dependent contractor" type of employment which has been linked with receiving holiday and sick pay as well as earning at least minimum wage.
But her ideas for workers' representatives in the boardroom, for example, didn't last the autumn and the tone of Matthew Taylor's report feels like tinkering around the edges of the "gig economy" rather than a revolution.
In an earlier interview with me, Mr Taylor said that the United Kingdom had been very good at creating a large number of jobs - which was an economic good - and that now the question was how to make those jobs of a high, and rewarding, quality.
The U.K. government is trying to improve working conditions for contract workers participating in the "gig economy".
Such workers are often dispatched by app-based companies like the ride-hailing service Uber, as the internet and smart phones cut the link between jobs and the traditional workplace.