New Penalties For Misclassifying An Employee As An Independent Contractor

Senate Bill 459 went into effect on January 1, 2012 and imposes increased penalties against any employer in California who willfully misclassifies an employee as an “independent contractor”. Willful misclassification is defined in the new law as “avoiding employee status for an individual by voluntarily and knowingly misclassifying that individual as an independent contractor.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robert Freedman - Partner at Tharpe & Howell, LLP | Attorney Advertising

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