Colo. Gov. Signs Bill To End Worker Misclassification

Law360, New York (August 27, 2009, 2:24 PM EDT) -- Colorado Gov. Bill Ritter on Wednesday signed legislation to crack down on employers that misclassify workers as independent contractors to avoid paying workers' compensation, unemployment insurance and other benefits.

The law, introduced as House Bill 1310, is aimed at protecting workers and curbing losses in state revenue from companies that avoid paying employment taxes.

It imposes a fine up to $5,000 for each misclassified employee for the first offense, and up to $25,000 per employee for subsequent offenses.

If employers are found to have misclassified workers...
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