Bowles & Verna LLP
Experience | Versatility | Proven Results

Toll Free: 866-767-6854

Local: 925-478-5696

New Law Penalizes Employers for Misclassification of Employees

A new California labor code provision subjects California employers and those who provide advise to the employer to Labor Code penalties if employees are misclassified as independent contractors.

Under the new provision, any employer who willfilly, and the person who knowingly advises the employer to do so, classifies an individual as an independent contractor to avoid employee status for the individual are jointly and severally liable if the individual is not found to be an independent contractor.

Attorneys should be aware that their advise to California construction contractors and other construction industry clients regarding employee status, workers' compensation and best employee practices could make the attorney jointly and severally liable for the employer's decisions.

Civil penalties for employers range from $5,000 to $15,000 per miscalculated employee, and $10,000 to $25,000 per employee if a "pattern and practice" of employee miscalculation is established.

Non-monetary penalties may also be imposed. An employer may be ordered to post on its website, or in another prominent physical location, a notice stating that the employer has committed a serious violation of the law. The notice must be posted for at least a year and must invite aggrieved individuals to contact the California Labor and Workforce Development Agency.

References: SB 459; California Labor Code sections 226.8 and 2753.

Are you a California contractor or other construction industry employer concerned about your employee classifications? Contact us for further information and a free consultation.

No Comments

Leave a comment
Comment Information
Best Law Firms | U.S. News | Best Lawyers Million Dollar Advocates Forum National Board of Trial Advocacy | NBTA | Est. 1977 The Best Lawyers In America Super Lawyers | California 2005 - Present LCA | Litigation Counsel of America American Board of Trial Advocates The National Trial Lawyers | Top 100 Trial Lawyers Bar Register of Preeminent Lawyers