Penalties for Independent Contractor Misclassification Increase
in Connecticut
July 9, 2010 - Recent
Connecticut legislation will increase the state's
civil penalty for misclassifying an employee as an
independent contractor on October 1, 2010. The
fine will raise from $300 per violation to $300 per day per
violation.
Also, under the new law, any employer who misclassifies an
employee as an independent contractor or
misrepresents the number of its employees to defraud or deceive an
insurance company to pay lower workers' compensation insurance is
guilty of a class D felony and subject to a stop work order. The
same penalties will apply if the employer takes the same action to
defraud the state of Connecticut (H.B. 5204).
Our legal team believes this new law may affect the
Connecticut Fair Employment or Workers' Compensation
labor law poster.