Thanks to Kent Bradbury for the following post:
Among several employment-related bills signed into law by Governor Brown recently was SB 459, a bill that significantly raised the stakes in the continuing game of cat and mouse we know as the proper classification of independent contractors. It includes the following provisions:
- A prohibition on "willful" misclassification of employees as independent contractors.
- Civil penalties assessed by the Labor and Workforce Development Agency of $5,000 to $15,000 ($10,000 to $25,000 for an established pattern or practice).
- Labor Commissioner may assess additional civil and liquidated damages.
- Joint and several liability for a consultant that advises an employer to treat an employee as an independent contractor.
- Reporting to the State Contractor’s Licensing Board for contractor employers, and a requirement that the Board initiate disciplinary procedures for violators.
- Posting of a notice on the website or in a public area of the employer for one year if found to be in violation.