Should their be a Scarlet “M” for Employers who Misclassify?

Recently approved legislation in California seems to suggest so.  Their new laws prohibit the intentional misclassification of individuals as independent contractors, and state that these could be punishable by civil penalties ranging from $5,000 to $15,000 for each violation.  There are also much larger penalties, up to $25,000, for employers engaging in a “pattern or practice” of violations.

“In addition to these fines, California also forces an employer, after being determined to be in violation of the law, to post on the company website or in a prominent public area, that the employer committed an infraction and has “changed its ways”.   The Scarlet M if you will!”

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