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Alerts

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

10/13/2011

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.