EmploymentQuestion 559 of 1632

What is the civil penalty range a contractor faces for each "willful misclassification" of an employee as an independent contractor under Labor Code §226.8?

a.$500 to $2,500 for each violation, doubled for a repeat offence
b.$5,000 to $15,000 per violation, and up to $25,000 for a pattern
c.$100 to $500 for each violation, capped at $1,000 in a year
d.$50,000 per misclassified worker, whatever the pattern

Explanation

Labor Code §226.8(b) sets a civil penalty of not less than $5,000 and not more than $15,000 for each willful misclassification; §226.8(c) raises the range to $10,000 to $25,000 per violation where a pattern or practice is found. The $500-$2,500 and $100-$500 bands are the scale of ordinary recordkeeping and notice penalties, not of misclassification, and no provision sets a flat per-worker figure. Note also §226.8(d): a certified copy of the order goes to the CSLB, which must initiate disciplinary action against the licensee within 30 days.

Law Reference: Labor Code §226.8(b), §226.8(c), §226.8(d)

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