How Does California Hold Employers Responsible for Employee Misclassification?

Our highly skilled and knowledgeable California employment law attorneys are adept at identifying common signs of employee misclassification in the workplace. However, what sets us apart is our deep understanding of how employers can be held accountable for their unlawful actions.

California boasts a comprehensive set of labor laws, including the California Labor Code, the California Unemployment Insurance Code, and the California Wage Orders. These laws not only provide clear definitions and guidelines for determining worker classification but also establish a wide range of employee rights and protections. This includes crucial aspects such as minimum wage, overtime pay, meal and rest breaks, workers’ compensation, and unemployment insurance.

Here, we discuss how these laws are applied to differentiate independent contractors from employees and what individuals can do to hold businesses accountable for misclassification.

California Uses the ABC Test: A Strict Standard for Determining Worker Classification

The ABC test presumes that workers are employees unless the employer can demonstrate that all three of the following conditions are met:

1. The worker is accessible from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
2. The worker performs work outside the usual course of the hiring entity’s business.
3. The worker is customarily engaged in an independently established trade, occupation, or business of the exact nature as the work performed for the hiring entity.

In California, several state agencies hold the power to enforce labor laws and investigate misclassification complaints.

They include the:

• California Labor Commissioner’s Office
• California Division of Labor Standards Enforcement(DLSE)
• Employment Development Department(EDD)

These agencies have the authority to conduct audits, investigations, and enforcement actions against employers suspected of misclassifying employees, ensuring your rights are protected.

What are the Penalties for Misclassifying Employees in California?

Employers with misclassified employees in California may face significant penalties and fines.

Penalties can include back wages, unpaid overtime, meal and rest break premiums, reimbursement of business expenses, statutory penalties, interest, and civil penalties.

Additionally, employers may be required to provide employees with benefits and protections they were denied due to misclassification, such as workers’ compensation coverage and unemployment insurance.

Misclassified employees in California have the right to file lawsuits against their employers to recover unpaid wages, damages, and other remedies. Class-action lawsuits are also common in cases of widespread misclassification affecting multiple employees.

Contact Our Experienced Los Angeles County Employment Law Attorneys Today

If you believe you have been misclassified, contact our experienced Los Angeles County employment law attorneys today to discuss your unique circumstances. Our employment law firm and bilingual staff at Romero Law, APC offer services in both English and Spanish and are available to discuss your case by calling (626)-396-9900 or contacting us online.