Massive, Stacking Financial Penalties
The potential for fines that accumulate per misclassified worker and per violation creates a severe financial threat. Even minor, unintentional errors could lead to crippling penalties, potentially forcing business closures.
Strict and Unforgiving 14-Factor Test
The rigid requirement to meet all 14 factors, with no room for error, creates an extremely high compliance burden. Even temporary lapses or simple mistakes can trigger misclassification.
Vague and Ambiguous Language
The poorly defined terms within the statute make it difficult for contractors to understand and comply with the law. This creates a high risk of unintentional misclassification and legal disputes.
Risk of Criminal Penalties
The potential for criminal charges related to wage theft adds a significant layer of risk and stress for construction contractors. This creates a fear of prosecution for mistakes made in a very unclear regulatory environment.
Increased Risk of Litigation and Disputes
The combination of unclear rules, and large financial penalties creates a very high risk of lawsuits from workers, or from the state. This increases the cost of doing business.