EmploymentQuestion 38 of 1605
A contractor hires a worker who is classified as an independent contractor but actually meets the definition of an employee. The main risk to the contractor is:
a.The worker can refuse overtime
b.The worker can sue only in federal court
c.The contractor loses their CSLB bond
d.The contractor must pay back wages, taxes, and penalties
Explanation
Misclassifying employees as independent contractors exposes contractors to liability for back wages, unpaid overtime, failure to provide benefits, unpaid payroll taxes, and significant penalties.
Law Reference: Labor Code §226.8Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)