Geoffrey Weg to Speak at Cal Poly Pomona Inaugural Tax Institute Seminar On October 28

Geoffrey A. Weg is a tax attorney with the law firm where he practices tax and estate planning, tax controversy, and general corporate law. He is currently on the Executive Committee of the California State Bar Taxation Section, and also the current Chair of the Taxation Section of the Beverly Hills Bar Association. He has received an LL.M. in Taxation at Loyola Law School, graduating with Distinction.

Cal Poly Pomona Inaugural Tax Institute
Date: October 28, 2011
Time: 7:30am – 5:00pm
Location: Sheraton Fairplex Hotel and Conference Center
601 West McKinley Avenue Pomona, California, 91768
To register logon to Cal Poly Pomona Inaugural Tax Institute
Or call the Accounting Department at (909) 869-2327 Mon-Fri, 9 a.m.- 4:30 p.m.
or email nsmiller@csupomona.edu

Business Alert: SB 459 Imposes New Substantial Penalties For Miscategorizing Independent Contractors

by Gregory Gorman

Many businesses seek to cut costs by categorizing employees as independent contractors. By doing so, they avoid additional employment costs such as benefits, worker's compensation and unemployment. Governor Brown recently Senate Bill 459 into law (among other employment bills) which makes employers liable for civil penalties of $5,000 to $15,000 for each violation of “willful misclassification” of employees as independent contractors. In addition, if it is found that the employer has a pattern and practice of misclassifying independent contractors, the penalties can increase to a minimum of $10,000 to $25,000 per violation. The new law adds Sections 226.8 and 2753 to the Labor Code. 

In addition to the substantial civil penalties, employers who violate the law are also required to post a notice on their website, or if the employer does not have a website they must post it in an area available to employees and the general public, for one year about the violation.

The new law also

• Prohibits the willful misclassification of workers as independent contractors to avoid properly classifying them as employees.
• Prohibits charging misclassified workers any fees or making deductions from their compensation where those acts would have violated the law if the individuals had not been mischaracterized.
• Gives the Labor and Workforce Development Agency authority to assess penalties and take other action against violators, and requires it to report violators who are licensed contractors to the Contractors' State License Board; further it requires the Contractors' State License Board, once notified, to bring an action against the contractor.
• Subjects non-lawyers who advise an employer to misclassify a worker to joint and several liability with the employer.

This new law makes it of paramount importance that employers exercise caution when characterizing workers as independent contractors.

Gregory G. Gorman Joins the Litigation Group

We are pleased to announce that Gregory G. Gorman has joined the firm. Mr. Gorman is a commercial, real estate and employment law trial lawyer who for 25 years has successfully represented numerous clients in high profile cases and multi-million dollar claims.

“I’m thrilled to be joining a team of such talented and accomplished lawyers,” said Mr. Gorman. “They’re truly a group of outstanding attorneys that not only inspire me, but most importantly, motivate me to continue to excel at law.”

Mr. Gorman has been retained as trial counsel in numerous commercial real estate and employment law cases. He uses his litigation expertise as a tool to obtain efficient results for his clients. His high-profile cases include: A jury awarded his client more than $8 million for fraud; he defeated a claim for negligent misrepresentation and breach of contract even though his client did not disclose all of the problems challenging a shopping mall; and he defeated a wrongful termination claim in which the plaintiff and defendant were having an affair.

Mr. Gorman’s business and strategic acumen is polished from years of practical experience as managing counsel of a Fortune 400 company and general counsel to several start-up and mid-sized companies. Mr. Gorman recently assisted a client through two workforce reductions and the termination of underperforming employees within the scope of the ADA, FMLA and ADEA – all without a lawsuit. He has represented both plaintiffs and defendants in wage and hour class actions.

Mr. Gorman teaches executive legal and ethical decision making, business modeling and business law in an organizational consulting doctoral program at Phillips Graduate Institute. He has been hired to train boards regarding their responsibilities and turnaround strategies.

He was recognized as a "Super Lawyer" for his work in real estate and litigation before becoming managing counsel in charge of development for Yum Brands, which owns the Taco Bell, Kentucky Fried Chicken and Pizza Hut brands, among others.

Mr. Gorman earned a Juris Doctorate from the Northwestern University School of Law in 1987 and a bachelor’s degree in journalism from Northwestern’s Medill School of Journalism in 1984.

Contact Mr. Gorman