Robert Tollen Quoted in California Executive "Bill Seeks to Curb Misclassification of Independent Contractors"

Bob Tollen was quoted in the article, “Bill Seeks to Curb Misclassification of Independent Contractors,” published April 22, 2008 by California Executive.

If California's Senate Bill 1490 passes and is signed into law, it would require businesses that hire independent contractors to provide them with an Employment Development Department-generated form that explains the factors the EDD uses to determine independent contractor status, what tax obligations they assume and protections they forfeit as independent contractors, and a notice of the worker’s right to contact the EDD for verification of status.

Bob noted that businesses that hire independent contractors can save on workers’ compensation insurance, unemployment insurance, overtime, meal and rest breaks, and deductions such as Social Security taxes. He further observed, however, that employers who misclassify workers as independent contractors are subject to severe penalties, especially in the instance that an independent contractor brings a legal action against the business that calls their employment status into question. Bob stated, "A worker injured on the job who was incorrectly classified as an independent contractor is entitled to recover court damages, without showing the employer was at fault, and the damages are not limited by the workers' compensation schedule… They may be whatever a jury decides to award, and they might include punitive damages."