By: Lizbeth V. West As many California employers are learning the hard way these days, the misclassification of workers as independent contractors rather than employees can have far reaching consequences when an employer is audited by different governmental agencies during either a random audit or an audit that is prompted in response to a claim… Continue Reading
The risks involved in misclassifying a worker as an independent contractor rather than an employee have always been serious. A number of federal and state agencies regulate the proper classification of workers and have the authority to impose significant monetary and non-monetary sanctions against employers who get the classification wrong.
By: Meagan D. Christiansen Labor Code section 2810 states that "[a] person or entity may not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, or security guard contractor, where the person or entity knows or should know that the contract or agreement does not include funds sufficient… Continue Reading
The State of California Signed an MOU with the Federal Department of Labor Together They Will Locate and Punish Those Who Misclassify Independent Contractors By: Lizbeth V. West, Esq. In my November 4, 2011 post, I discussed a new California law (Labor Code § 226.8) that imposes serious monetary fines and other sanctions against those… Continue Reading
Plaintiff Varisco was certified by the California Division of the State Architect (“DSA”) as a Class-1 Inspector. On January 30, 2004, Gateway Science entered into a written agreement with Varisco which stated that Gateway Science would pay Varisco for providing DSA Inspection Services to the Los Angeles Unified School District. In November of 2004, Gateway… Continue Reading
Introduced in September by Barack Obama, SB 2044 places stricter requirements on who can be classified as an independent contractor rather than an employee. If independent contractors are moved into the category of employees, employers will be required to pay higher taxes on those individuals. Additionally, such legislation would increase potential liability concerns for employers…. Continue Reading