How does misclassification affect San Diego healthcare businesses? How can the Watkins Firm support your Medical business or healthcare related entity protect against misclassification of employees under the recent Supreme Court ruling?
The Watkins Firm can help you to come into compliance with independent contractor or employee classification and the new California standard that “all workers in California are considered to be employees” unless the provider of work can prove they are in compliance with the new ABC test. The second tenet of this ABC test says current independent contractors must be re-classified as employees unless your company can prove “The work provided is not part of the core business services or offerings of the entity.” If you are a healthcare related entity or provider your independent contractors may not be able to have anything to do with the provision of healthcare services or supporting services.
The risks San Diego medical businesses and healthcare entities face are substantial. For each “misclassified employee” a business is exposed to a civil fine (usually $25,000 per incidence) and the payment of federal and state income taxes for all compensation paid to the independent contractor for a look-back period of up to four years. In addition, you will be required to pay all back payroll-related deductions including, but not limited to unemployment, workers compensation, social security.
You will be required to post a public notice in a highly visible area of your business which informs “employees” they have been misclassified which exposes your entity to PAGA actions, plaintiff’s lawsuits and class actions for other unpaid financial damages including the benefits they would have enjoyed as an employee (vacation, healthcare) and compensation for unpaid overtime and other wage and hour related violations.
How does misclassification affect San Diego healthcare businesses and medical corporations? The financial risk simply cannot be overstated. The Watkins Firm has decades of experience serving San Diego’s healthcare business community. We will work with you to develop a strategy to come into compliance with the Dynamex ruling and reduce the risk of financial exposure going forward. To learn more, contact the Watkins Firm or call 858-535-1511 for a free consultation.
