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California Governor Signs S.B. 459, Dramatically Increasing Penalties for Misclassifying Employees as Independent Contractors

On October 13, 2011 by Schnader

As was anticipated, California Governor Edmund G. (“Jerry”) Brown announced on October 9 that he signed Senate Bill 459. That legislation imposes dramatic penalties on employers found to have engaged in “willful misclassification” of workers as independent contractors, as well as on non-lawyer advisors who knowingly counsel to engage in such reclassification. This Alert summarizes the new law.