LEGISLATION ALERT: Governor Signs Employee Misclassification Bill

Last month, we told you about a bill, SB 459, that was awaiting the Governor’s signature. SB 459 would penalize employers who willfully misclassify employees as independent contractors. See alert at http://www.thelelawblog.com/2011/09/articles/new-legislation-and-regulation/legislative-alert-employee-misclassification-bill-sent-to-governor/.

On Sunday, October 9, 2011, Governor Brown signed SB 459 into law. As we advised last month, employers are encouraged to review their classifications of employee/independent contractors and consult legal counsel, if necessary, to avoid incurring civil penalties and/or costly litigation as a result of the enactment of SB 459.