EmploymentQuestion 647 of 690
Under Labor Code §226.8, a contractor who willfully misclassifies an employee as an independent contractor faces a civil penalty of:
a.$100 per violation, capped at $1,000 per year
b.$1,000 per violation, no other consequences
c.Only repayment of unpaid wages, with no civil penalty
d.Between $5,000 and $15,000 per violation (and $10,000–$25,000 per violation if a pattern or practice is found), plus required public posting of the violation on the company's website
Explanation
Labor Code §226.8 imposes civil penalties of $5,000–$15,000 for each willful misclassification, increased to $10,000–$25,000 per violation if the Labor Commissioner or court finds a pattern or practice. Violators must also post a notice of the violation prominently on their public website (or in the workplace if no website) for one year. CSLB licensees face additional discipline under Bus. & Prof. §7110.1. Options A, B, and C dramatically understate the penalty and omit the posting requirement, which is one of §226.8's most distinctive 'shaming' features.
Law Reference: Labor Code §226.8Practice all 690 questions free — no signup required.
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