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Expert Analysis

Paying A Price For Misclassifying Workers In Calif.

Law360, New York (September 22, 2011, 12:35 PM EDT) -- On Sept. 8, 2011, the California legislature passed Senate Bill 459 prohibiting the willful misclassification of individuals as independent contractors. Labeled by some as the "Job Killer Act," this new legislation creates civil penalties of between $5,000 and $25,000 per violation. In addition to making it illegal to willfully misclassify individuals as independent contractors, the new law will also prohibit charging fees to or making deductions from the compensation paid to those misclassified workers. Although still requiring Gov. Jerry Brown's signature, it is anticipated that this legislation will become law within 30 days....

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