Civil penalties of between $5,000 and $25,000 for each willful misclassification of an independent contractor. Misclassified employees can also seek back pay for unpaid wages or overtime, premiums for meal and rest breaks, or pursue a claim to enforce civil penalties under California’s Private Attorneys General Act.
HR functions and needs vary depending on the size and dynamic of the business. As a consultant, we can help you make this important distinction and save you the hassle of not only hiring someone but also the liability associated with that process.
Uniform enforcement of the rules is key. Whether you are terminating that employee for time and attendance issues, or performance, you as the employer need to show that you have a system in place to track and uniformly enforce these measures. If not, the employee can seek unemployment benefits, which will end up costing you $$$.
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