Tredway, Lumsdaine and Doyle LLP

Roy Jimenez, a partner at Tredway Lumsdaine & Doyle, LLP, prevails after a five day trial. The elderly clients were wrongfully sued for breach of contract, fraud, breach of fiduciary and other causes of action. Jimenez was successful in impeaching the credibility of the plaintiff with rebuttal exhibits and the Plaintiff’s own witnesses.

The clients said they felt ten years younger after the judge ruled in their favor. They were very grateful to Jimenez and the TLD staff that worked so hard in their behalf.

CPAs, like attorneys, face a litany of circumstances in which their position is adversarial to that of the client. These include fee disputes, collections efforts and audits. The state of California has now given CPAs another circumstance in which interests will diverge. It comes in the form of joint and several liability with clients for misclassification of workers as independent contractors.

New Labor Code Section 226.8

A new 2012 law is Labor Code Section 226.8. This law, among other objectives, makes CPAs jointly and severally liable for willful misclassification of employees as independent contractors.

The purpose of Labor Code Section 226.8 is to increase fines and penalties to those companies who willfully misclassify employees as independent contractors. In general, businesses utilize the classification of a worker as an independent contractor because it is significantly less expensive. The business does not have to set up payroll, pay into unemployment and FICA, etc. However, this willful misclassification can put a company out of business. Both California and the federal government have programs to target misclassified workers, and the penalties for intentionally classifying a worker incorrectly can be HUGE.

Extraordinary Fines

For example, assume an individual is paid $20,000 in wages in 2011. If that individual is classified as an employee, the employer will be required to pay about $1,800 out-of-pocket costs toward the employee’s withholdings, unemployment insurance, FICA, etc. If the individual is paid as an independent contractor, the out-of-pocket cost above and beyond the wages is zero, which may seem like a great cost-savings to the employer.  However, if that employer is audited by the EDD, which determines that the independent contractor should have been paid as an employee, the additional cost to the employer will be $10,865 – before penalties. Clearly, the cost of willful misclassification easily can bankrupt a company.

Willful Misclassification Fines

New fines for willful misclassification are $5,000-$15,000 for each violation.  If there is a pattern or practice of misclassifying workers, the fine increases to $10,000-$25,000 per violation.  These new penalties are in addition to existing fines and penalties set forth above.

To read more of Brooke M. Pollard’s article, please click here.

“Downey resident and attorney Jennifer A. Lumsdaine, an associate with the Southern California law firm Tredway, Lumsdaine & Doyle LLP, will head the Southeast District Bar Association’s new class of board members.

Lumsdaine, who has been practicing law in California since 2004, served as SEDBA secretary-treasurer last year. She is based in the Jennifer A. Lumsdaine – TLD firm’s Downey office; additional locations include Irvine, Long Beach and Beverly Hills.

“Being named president of an organization with such strong roots in the Southern California legal community is quite an honor,” Lumsdaine said. “The SEDBA’s rich history of service in southeast Los Angeles County is a byproduct of its dedicated board and distinguished members, and I’m very much looking forward to working alongside my fellow officers and trustees this year.”

Lumsdaine, who specializes in general civil, business and probate litigation, including will/trust disputes and family law, will be joined on the 2012 SEDBA board by colleague Roy J. Jimenez.

Jimenez, a partner with Tredway, Lumsdaine & Doyle since 2006, will serve this year as a SEDBA trustee.”

This article is provided by the Press-Telegram of Long Beach. To view it, please click here.

Noted attorney Jennifer A. Lumsdaine, an associate with Southern California law firm Tredway, Lumsdaine & Doyle LLP, will head the Southeast District Bar Association’s (SEDBA) new class of board members when she is installed as president on Saturday, Jan. 28, at the Rio Hondo Country Club in Downey.

Lumsdaine, who has been practicing law in California since 2004, served as SEDBA secretary-treasurer last year.  A resident of Downey, Lumsdaine is based in the regional firm’s Downey office; additional locations include Irvine, Long Beach and Beverly Hills.

“Being named president of an organization with such strong roots in the Southern California legal community is quite an honor,” said Lumsdaine.  “The SEDBA’s rich history of services in Southeast Los Angeles County is a byproduct of its dedicated board and distinguished members, and I’m very much looking forward to working alongside my fellow officers and trustees this year.”

Jennifer A. Lumsdaine, who specializes in general civil, business and probate litigation, including will/trust disputes and family law, will be joined on the 2012 SEDBA board by colleague Roy J. Jimenez.  Jimenez, a partner with Tredway, Lumsdaine & Doyle since 2006, will serve this year as a SEDBA trustee.

“With two of the firm’s most esteemed attorneys named this year as SEDBA officers, Tredway, Lumsdaine & Doyle is well-represented on a well-respected board,” said Tredway, Lumsdaine & Doyle Managing Partner Daniel R. Gold.  “Our firm was founded in Downey more than a half century ago, so it feels appropriate to have two of our brightest legal minds supporting SEDBA in a leadership capacity.”

To read more of this article, please click here.

To view the invitation tof SEDBA’s 49th Annual Installation of Officers and Trustees Awards Gala, please click here.