Misclassification of employees as independent contractors is a serious problem. When workers don't actually meet the legal test for independent contractor status, it exposes the employer to significant liability.
In fact, a misclassification mistake can result in civil penalties; liability for unpaid wages, including potential overtime pay; liability for meal and rest breaks; liability for employment taxes; and more. Ouch.
Class action lawsuits in this area continue to rise, and independent contractor arrangements are under increasing scrutiny from California and federal enforcement agencies.
Download CalChamber's free white paper to read about the five independent contractor myths that can put you on these agencies' radar or land you in a lawsuit.
Disclaimer: This white paper is provided as general information
only and is not intended to be or to replace legal advice.