Independent Contractor Rights in California Will Get More Attention

The rights of independent contractors will get more attention as the 2014 health care reform requirements swing into action, top civil attorneys anticipate. Both federal and state governments are intensifying their crackdown on worker misclassification, as the cost of lost employment tax revenues are in the billions. Civil attorneys in California say that, in the past, employers misclassified workers to not pay overtime, skip giving appropriate rest and meal breaks, not pay taxes, and not be liable for workers' injuries among other things.

Civil attorneys say we may see an increase in employers misclassifying employees as independent contractors in an effort to avoid paying new mandatory health insurance coverage for their employees. Under the new health care reform, employers with at least 50 full-time equivalent employees must pay at least the minimum level of health insurance coverage.

Industries most likely to violate independent contractor rights:

• Construction workers
• Cable installers
• Cleaning workers
• Maids
• Security guards
• Vehicle and truck drivers
• Manicurists
• Technology and IT workers
• Carpenters
• Electricians

The best civil attorneys say that many companies misclassify their employees as independent contractors even before "hiring" them. Some companies will call them "temporary" employees or will tell them they are "part-time" employees and hire them as misclassified independent contractors until their initial term has been completed. However, civil attorneys know this practice is unlawful and companies are exposing themselves to a very costly lawsuit.

In California, new laws went into effect recently that penalizes companies of up to $25,000, in addition to paying owed back wages (including overtime pay), taxes, IRS and federal penalties and fines, attorneys' fees and more. The new healthcare laws rolling out in 2014 will also impose penalties for failing to pay health insurance coverage. If a small employer is found by the IRS to be misclassifying workers and then the business becomes a large employer and subject to providing health insurance coverage, penalties and fines will have to be paid for each employee.

The facts are clear, if you are a business and have any number of independent contractor agreements, it is vital you get the expert help from a civil attorney in California. As an employer, you need to know what your rights are and what independent contractor rights exist to protect your interests from very costly litigation.

Know that new California laws also require that when you have violated independent contractor rights and have misclassified employees you must post on the company website or prominent public that you violated the law and have "changed your ways."

Do not risk the public scrutiny of the new laws, high cost of a civil lawsuit, penalties, fines, interest, and your business, get a California civil attorney with expertise in employment and labor laws and contracts.