New California Law – Senate Bill 459 (SB 459)

Effective January 1, 2012, employers in CA will face stiff penalties – including fines of $5,000 to $10,000 for first violations and up to $25,000 for repeat violations – for “voluntarily and knowingly” misclassifying workers as independent contractors after Governor Jerry Brown recently approved California Senate Bill 459 (SB 459).
In addition, an employer who violates the new law must post a notice to employees on its Internet website, or, if it does not have a website, another prominent area. The notice must provide the following information: (1) the employer violated the law; (2) the employer changed its business practices to avoid committing further violations; (3) the contact information for the state Labor and Workforce Development Agency to report other violations; and, (4) the employer was ordered to post the notice. SB 459 reinforces the importance of appropriately classifying independent contractors under California and federal law. Employers should also be aware of the mine field of other violations under various laws with respect to misclassification. View SB 459