EmpleoPregunta 912 de 1605

A general contractor misclassifies several framers as independent contractors to avoid payroll taxes and workers' compensation. Which is a likely consequence?

a.Only a written warning from the CSLB
b.Liability for back payroll taxes, unpaid overtime, and statutory misclassification penalties
c.The workers lose all wage claims
d.No consequence, because classification is entirely the employer's choice

Explicación

Willful misclassification exposes an employer to back payroll taxes and contributions (EDD), unpaid overtime and minimum wage under the Labor Code, and civil penalties under Labor Code §226.8 (which can range into thousands of dollars per violation). The employer may also owe workers' compensation liabilities. Classification is not a free 'choice'; it is governed by the ABC test, and misclassification carries serious penalties.

Referencia Legal: Labor Code §2775 et seq.

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Revisado por Abraham Chen Licensed California General Contractor (CSLB License #1101856 verificar)
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