Two new California state laws, signed by Gov. Jerry Brown Oct. 9, raise the stakes for companies that violate the state’s wage and hour laws.
Assembly Bill No. 459, among the latest move by feds and the states to crack down on independent contractor abuse, prohibits willful misclassification of employees as independent contractors.
The law also bars employers from punishing workers who are found to have been misclassified.
Employers who violate this law can face a $15,000 fine. Repeat or flagrant offenders may be fined up to $25,000. They could also lose their business license.
Assembly Bill No. 469 makes it a misdemeanor for an employer to willfully violate minimum wage laws or ignore a state or court’s order to pay workers what they are owed.
The law also extends the period within which the state may commence a collection action from one year to 3 years.