California employers may be responsible for their involvement in a co-joint employer's willful misclassification of employees, but the associated civil penalties are only recoverable through an enforcement action or Private Attorney General Act ("PAGA") claim. In Noe v. Superior Court, Anschutz Entertainment Group (AEG) owned several entertainment venues, contracting with Levy Premium Foodservice for concessions at the venues. Levy engaged Canvas Corporation to staff the concessions. Several former concession workers hired by Canvas filed a wage and hour action against Canvas, Levy and AEG as joint employers, contending each was responsible for willfully misclassifying them and seeking penalties under Labor Code Section 226.8, among other claims and remedies. The court recognized that the statute extended liability beyond the employer who committed the willful misclassification: "a joint employer who knowingly acquiesces in a co-joint employer's decision to wilfully misclassify their joint employees has necessarily 'involved' itself in that misclassification decision" and may be liable under the Section 226.8. The court further determined that the statute did not create a private right of action, such that the vendors' individual claims to recover the civil penalty were dismissed. Rather, the civil penalty may be enforced only by the Labor Commissioner or by an individual through a PAGA claim.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
