EmploymentQuestion 242 of 690

Under Labor Code §226.8, willful misclassification of an employee as an independent contractor can result in a civil penalty of:

a.$100 to $500 per violation
b.A warning letter only for a first offense
c.Up to $1,000 per violation
d.$5,000 to $15,000 (or $10,000 to $25,000 for a pattern or practice) per violation

Explanation

Labor Code §226.8 authorizes civil penalties of $5,000 to $15,000 for each willful misclassification violation, increasing to $10,000 to $25,000 per violation when the employer engages in a pattern or practice of misclassification.

Law Reference: Labor Code §226.8

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