Misclassification is Going to Brand You

Governor Brown recently signed SB 459, employment-related legislation aimed at that ever-complicated pas de deux: employee versus independent contractor classification. Under the new law, there are serious consequences for any employer who willfully misclassifies an employee as an independent contractor, as well as any person advising an employer that the employee can be classified as an independent contractor.  There are also civil penalties beginning at $15,000, as well as additional civil damages, reports to the State Contractor's Licensing Board for contractor employers, and posting (a lá “The Scarlet Letter”) of the employer’s violation in a public area or employer’s website for one year if the employer is found to be in violation.