California Independent Contractor Law May Be Liability for Agents, Brokers

By | February 7, 2012

  • February 8, 2012 at 2:45 pm
    business insurance broker says:
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    I think its a great idea to hold the business owner and the broker responsible for misclassification of employees. I cannot tell you how many times I have competed against brokers that misclassify a workers compensation quote in order to get a more competitive quote. When I point this out to the applicant the usual response is “what do I care as long as I have insurance and I am saving money?” This will even out the playing field by giving unethical brokers and business owners consequences to their actions.

    • February 8, 2012 at 7:32 pm
      Mr. Fabo OC says:
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      Sadely the unethical brokers and business owners will continue to find a way to dodge the system. What this will do is cast a net over everyone and pull down some agency owner who’s staff simply made a mistake. Too many laws at it is, we don’t need more.

  • February 9, 2012 at 7:27 am
    Keith Pratt says:
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    I agree with the problem of misclassification. I can understand not holding an employee accountable for a misclassification but am confused why an attorney is exempt if the misclassification is part of their practice of law. Can someone explain why an attorney is exempt from misclassification other than a self-serving addition to the statute?

    • February 9, 2012 at 1:06 pm
      Ins Guy says:
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      Why so naive? Lawyers pay big money to have other lawyers elected, and once their done, hire them back and pay them bigger money to teach them how to do it better.

  • February 10, 2012 at 2:07 pm
    Boca Condo King says:
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    It is easier and simpler and much cheaper to have “independent contractors” vs. employees.
    The savings can be huge to the employer looking to cheat, and the cheater is enabled by mushy laws that allow much interpretation.
    How about this for a solution, if someone is working on your behalf, that someone is an independent contractor only when they are paid as employee for that work by someone.
    I have seen people “legally” working as 1099s suffer horrendous injuries that will impact generations of their family and there is no workers’ compensation coverage to help.
    We worry about adding health care (which will only increase the desire to misclassify) while tolerating a system that allows people to work without the basic social coverages and insurances that we have demanded for the past 100 years.
    It’s like painting a house while it’s buring down.

  • February 13, 2012 at 10:42 am
    OmniSure says:
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    Here’s a twist. If the Insurance Agent is found guilty of knowingly advising on misclassifications (maybe more than just independent contractor status) then the knowlinly part is purposeful and may NOT be covered under any E&O policy… Plus the Public Flogging would be an even BIGGER SPANK! This law is GREAT, the only problem I have is… ATTORNEY’s GET A PASS, why? They tipically ADVISE business’ on exactly this subject, FOR A FEE… iF ATTORNEY’S get a PASS, so should INSURANCE AGENTS. It’s only FAIR!

  • July 8, 2012 at 12:52 am
    Elizabeth says:
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    Having encountered many employers during this recession who’ve unlawfully tried to classify me as an “independent contractor”, I’ve discovered a brand new stream of revenue: I go home and drop the dime on them to the I.R.S.’s Whistleblower reporting website! The IRS, in turn, will pay me up to 30% of what the tax cheat owes. I tell all of my friends — TURN THESE CHEATS INTO THE IRS! I also report all of the ads as well to my governor (California) for auditing by the state.



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