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Assault on Independent Contractor Misclassification Continues: California Legislature Passes and Sends Aggressive New Legislation to Governor Brown for Signature

On September 28, 2011 by Schnader

Billed as prohibiting and punishing the “willful misclassification” of employees as independent contractors, S.B. 459 would impose stiff civil penalties for each violation and even higher penalties if a “pattern” of violations is found. Both houses of the California Legislature recently passed S.B. 459 and sent it on to Governor Brown for signature. This measure joins a plethora of legislative and administrative efforts at the federal and state levels to deter and punish the misclassification of employees as independent contractors. This Alert discusses the recent legislation.