SB 622 Threatens More Penalties for Employee's Misclassified as Independent Contractors.
A bill sitting on Governor Schwarzenegger’s desk would create even greater penalties for employees misclassified as independent contractors or exempt employees. SB 622, which was sent to Gov. Schwarzenegger’s desk on September 20, 2007, would assess large civil penalties against employers who: (1) “willfully” misclassify employees as independent contractors; (2) "willfully" pay a non-exempt employee at a fixed salary; or (3) make certain deductions from the pay of an employee "willfully" misclassified as an independent contractor.
SB 622 would levy large civil penalties of up to $15,000-25,000 against violators. This bill is yet another example of the legislative climate employers now face in California and the importance of making sound and informed determinations when classifying individuals in California as exempt employees or independent contractors.