IN THE NEWS
Your help is needed! The California Assembly is debating legislation that would penalize firms that “willfully misclassify” workers as independent contractors. The bill, S.B. 459, would also impose additional disclosure and recordkeeping requirements on employers of such contractors. FPA is concerned about the unintended consequences this legislation would have on financial planners who legitimately operate under an independent contractor business model.
Please send your state legislators an email expressing these concerns from our grassroots site.
The misclassification of employees as independent contractors is a legitimate issue for many workers, causing them to lose protections entitled under federal and state labor laws. You may have clients who were caught unaware by the additional requirements and taxes required of them as a contractor. However, as the legislation is written, it would have a definite chilling effect on any employer who uses independent contractors – legitimately or not.
Our primary concern is that different state agencies have different definitions of the term independent contractor. These agencies also utilize their own tests to determining whether a worker is properly classified. So, a contractor might meet the requirements of one regime but fail another. Additionally, the legislation would also subject employers to additional litigation under the Private Attorney General’s Act. These factors will greatly increase the legal uncertainty and costs for employers.
The legislation is expected to be considered by the Assembly Appropriations Committee this summer. Your input at this time is critical!
Click here to view our grassroots site.
If you have any problems using the site, please contact
Jennifer Rudolph
Additional analysis of the bill can be found here.
Consumer Oriented Articles:February 2012
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For questions or inquiries contact:
Ralph Adamo, FPA OCC
2010 Chair, Public Awareness/Community Relations
(949) 955-1188
Edward Mora, CFP® to Serve as 2011 Disciplinary and Ethics Commission Chairman
Edward Mora, CFP®, (FPA OCC's chair for the Government Relations & Regulatory Affairs Committee) has been appointed to serve as the 2011 Chairman of the Disciplinary and Ethics Commission (DEC), an independent body charged with upholding the value and integrity of the CFP® certification by enforcing CFP Board's Standards of Professional Conduct.
Read more.
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