The Anastasi Law Firm offers its clients cost effective solutions. The Anastasi Law Firm provides proactive legal services designed for asset protection of business owners and their company. You can be assured the 30+ years of business lawyer experience will be applied to provide you with the most cost effective and reasonable solution available.
Warning: Do not attempt to “save” money and treat/pay an “employee” as an independent contractor; the legal and financial risks are very high.
Independent Contractors
One of California’s greatest business litigation risk exists with the workforce of the business itself. Many business use independent contractors for a variety of services. The company must be careful not misclassify an “employee” as an independent contractor. There are different status “tests” depending upon which governmental agency or judicial court is determining the case. It is actually possible for one agency to conclude the worker is an “employee” and another agency concluding the same worker to be an “independent contractor” while using the exact same set of facts!
The consequences for misclassification are very serious and expensive. They include compensation reimbursement, payment of taxes, penalties, interest and attorney’s fees which have the potential to put a company out of business. Anastasi Law Firm can help business owners minimize the risks of misclassification through proactive planning, counsel based on significant experience and proper legal structuring. Do not underestimate the importance of proper classification of workers as either true employees or true independent contractors. Independent contractors are not just a label. Do not try to save money by classifying a worker as a 1099 independent contractor without first understand the government tests.
Serious Consequences for Misclassification:
Federal Taxes: Income tax payable by employee; FICA taxes (medicare & social security); FUTA payment taxes; Penalties for not filing W-2; Penalties on unpaid taxes; Penalties for each social security number not obtained; Interest on unpaid taxes; and potential for fraud, negligence or other findings or fines.
California Taxes: Income taxes payable by employee; Disability insurance; Unemployment insurance; State job training; Interest on unpaid taxes; and Penalties and potential imprisonment.
Worker’s Compensation: Stop work order; Worker’s Compensation assessment equal to employer and work contributions estimates; Time lost; Penalties; Payment of all medical expenses and separate civil action; Knowing failure to secure workers compensation payment is a misdemeanor.
Wage & Hour Law: Unpaid minimum wage and/or overtime & interest; Liquidated damages in an equal amount; Attorney’s fees; Meal and rest period premiums; Expense reimbursement claims; Penalties waiting time and pay stub.
Employee Rights: Discrimination, Harassment, Retaliation, Disability Accommodation, Medical and Family Leave laws — Back pay and benefits; Front pay and benefits; Emotional distress damages; Punitive damages; Attorney’s fees
Immigration: Fines & penalties for failure to file I-9
Pension and other Benefit Plans: Pension plan payment of 401k deferrals and matching contributions; Health premiums that should have been paid; Employee stock purchase/option plans; Lost bonus/awards given to other employees.
Respondeat Superior Liability: Employer responsible for tort (negligence) damages caused by worker.
Personal Attention • Prompt Service • Affordable Fees • Experienced
Free Consultation
Contact us today to set up a Free Consultation (20 minutes) either in our office or over the phone. In the San Jose metro area, call us at 408.292.2606. In the Santa Cruz area, call us at 831.475.0771.