Central Coast Courts See Rise in Labor Law Claims

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Central Coast courts are facing an increase in labor law claims, with filings rising in recent years. Remote work and changes to employee classification have altered the rules for many people. Elke Kane, an associate attorney at Trusted Legal, explains that most misclassification stems from using outdated assessments and evolving job responsibilities, not intentional violations. However, these oversights can leave businesses exposed to significant risks, including back taxes, unpaid wages, and legal battles.

Why it matters

Employee misclassification can have serious consequences for businesses, including financial penalties and legal battles. As the shift to remote and hybrid work continues, it's crucial for employers to re-examine their classification practices to ensure compliance with evolving labor laws.

The details

Kane outlines several steps businesses can take to prevent employee misclassification, including understanding the 'ABC test' for independent contractor status, re-evaluating exempt classifications for remote workers, and addressing compliance obligations for employees working in different states. Periodic classification audits are recommended to identify and address any issues before they lead to costly legal problems.

• Central Coast courts have seen a rise in labor law claims in recent years.

What they’re saying

What’s next

Employers should conduct periodic classification audits to identify and address any issues related to employee misclassification before they lead to legal problems.