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Labor/Employment

Oct. 22, 2011

State Senate Bill 459: new fines and a scarlet letter

Employers who willfully misclassify workers as independent contractors face increased penalties starting next year. By James Severson of Bingham McCutchen LLP


By James Severson


On Oct. 9, Gov. Jerry Brown signed into law Senate Bill 459, which increases the penalties that can be assessed against employers who willfully misclassify as independent contractors individuals who should be treated as employees. The law, which will become effective on Jan. 1, 2012, also requires employers who are found to have engaged in such misclassification "to display prominently" for one year on their Internet websites a notice ...

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