Since becoming governor of California in January 2011, Jerry Brown has signed a number of significant employee-friendly laws, placing an ever-growing burden on California employers. This article will briefly summarize many of the laws.
Misclassification of Independent Contractors (Effective January 1, 2012)
This law prohibits any employers from willfully misclassifying employees as independent contractors and provides civil penalties of not less than $5,000 and not more than $15,000 for each willful misclassification. The law also provides that the civil penalties can be even greater if the employer has engaged in a pattern or practice of misclassification. The law further authorizes the California Employment Development Department (EDD) to process requests for advice regarding classification of independent contractors, called Advice Memos. Employers must maintain, for at least two years, the