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HR firm denies senator’s allegation of misclassifying employees

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Deel also appears to be advising clients to misclassify employees and evade taxes in California, said Padilla.

The CEO is encouraging companies to leverage “the different ways of employing someone or assigning them as an independent contractor… and therefore don’t put as much tax liability into your company,” he said.

“No company is above the law. Deel has been openly flaunting their violation of California labor laws, intentionally misclassifying their employees as independent contractors and denying them critical benefits,” said Padilla. “California is clear on this issue; employees are entitled to benefits and protections. Corporations engaging in malicious employment schemes like this need to be held accountable and these employees need to see their rights restored.”

Senator Dave Cortese (D-San Jose), chair of the Senate Labor, Public Employment and Retirement Committee, and Senator María Elena Durazo (D-Los Angeles), member of the Senate Committee on Labor, Public Employment and Retirement, also joined Senator Padilla in condemning Deel’s actions.

Independent contractor laws in U.S.

California law generally accepts that the basic test to distinguish an employee from an independent contractor is whether the company has the right to control the manner and means by which an employee performs their work, said Padilla.

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