BILL NUMBER: SB 622	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 6, 2007
	AMENDED IN SENATE  MAY 3, 2007
	AMENDED IN SENATE  APRIL 19, 2007
	AMENDED IN SENATE  MARCH 29, 2007

INTRODUCED BY   Senator Padilla

                        FEBRUARY 22, 2007

   An act to add Section 226.8 to the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 622, as amended, Padilla. Employment: misclassification of
employees as independent contractors.
   Existing law prescribes comprehensive requirements relating to
minimum wages, overtime compensation, and standards for working
conditions for the protection of employees applicable to an
employment relationship.
   This bill would prohibit willful misclassification  , as
defined,  of employees as independent contractors. The bill
would authorize the Labor and Workforce Development Agency to assess
specified civil penalties from persons or employers violating the
bill.  The bill would authorize employees who suffer actual
harm or a labor union or organization to bring actions to recover
these civil penalties. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 226.8 is added to the Labor Code, to read:
   226.8.   (a) It is unlawful for any person or employer to engage
in any of the following activities:
   (1) Willful misclassification of an employee as an independent
contractor. 
   (2) Willful payment of a nonexempt employee at a fixed salary rate
where the employer knew or should have known that payment at that
rate would result in the employee receiving less wages than he or she
would have had he or she been paid based on regular hours and
overtime hours worked.  
   (3) 
    (2)  Charging an employee who has been willfully
misclassified as an independent contractor a fee, or making any
deductions from compensation for any purpose, including, but not
limited to, fees or deductions for goods, materials, space rental,
services, government licenses, repairs, equipment maintenance, or
fines arising from the employee's employment where the employer would
have been in violation of the law if the employee had not been
misclassified.
   (b) If the Labor and Workforce Development Agency or any of its
departments, divisions, commissions, boards, or agencies, or a court,
finds that any person has engaged in any of the enumerated
violations of subdivision (a), a civil penalty of not less than five
thousand dollars ($5,000) and not more than fifteen thousand dollars
($15,000) shall be assessed against the person per violation, in
addition to any other penalties or fines permitted by law.
   (c) If the Labor and Workforce Development Agency or any of its
departments, divisions, commissions, boards, or agencies, or a court,
finds that any person has engaged in any of the enumerated
violations of this section and there is evidence that the person has
engaged in or is engaging in a pattern or practice of these
behaviors, a civil penalty of not less than ten thousand dollars
($10,000) and not more than twenty-five thousand dollars ($25,000)
shall be assessed against the person per violation, in addition to
any other penalties or fines permitted by law. 
   (d) Nothing in this section shall prohibit an employee who has
suffered actual harm or a labor union or organization that represents
that employee from bringing an action on behalf of himself or
herself or on a representative basis on behalf of all employees of
the employer who are similarly situated to recover the penalties
established in subdivisions (b) and (c).  
   (d) For purposes of this section, "willful" means voluntary and
intentional. 
   (e) Nothing in this section is intended to limit any rights or
remedies otherwise available at law.