Forgot about this

The Cal Supremes issued a ruling last year that impacts every employer in the private sector, a new set of regulations and risk. There will be no offsetting deregulation by the venezuelans, you can count on that. This is a significant tipping point, a sub set of employers that are impacted the most will tend to shut or move. Yet it has no upside except more taxes. Add another half point to the cost of doing business in California.

Chief Justice Tani Cantil-Sakauye noted in the opinion “When a worker has not independently decided to engage in an independently established business but instead is simply designated an independent contractor … there is a substantial risk that the hiring business is attempting to evade the demands of an applicable wage order through misclassification.”
The Dynamex decision provides California enforcement agencies such as the Employment Development Department (EDD), the Franchise Tax Board (FTB) and even the Internal Revenue Service (IRS) with the opportunity to challenge the classification of any independent contractor working in California or for a California business or entity providing their work.
Misclassification of an “employee” as an independent contractor exposes a business to substantial financial and business consequences. Tax agencies such as the IRS and FTB simply have to use internal data mining to identify and target businesses who provided 1099’s to independent contractors for an audit. The EDD regularly reviews or audits every California employer searching for misclassification. 

If we had the government wedges hitting business in the coming cycle here in California, the total comes to close to 8%, with the pension and medical cost feed back. This tax demand is starting now and lasting for two years until fully expensed. During that time expect more strikes and stoppages.

We do not have the legislative expertise to navigate and engage in fair negotiations. Remember, we are still suffering NCLB volatility, a total legislative failure out here, and Gavincare looms, another likely legislative failure. We are still suing over tax claw backs from legislation ten years ago on train. This legislature and Gavin will lose the trail, Gavin goes dating and the legislature in confusion.