Thanks she has not been fined yet, but everyone around us has. Were not even sure where to start with changing employee status and everything. On a side note if we were to change everything can they still fine us for previous years?
The short answer is, I don't know for sure. However, most new laws are "prospective", which means they only apply after the law was enacted (as opposed to "retroactive" laws, which can reach back and affect things that happened before the law was passed). But keep in mind that this law took effect over a year ago, so certainly your mom could be looking at liability for anyone she classified as an independent contractor since January 1, 2012. But again, I'm only answering your question while "standing on one foot" without all the facts and without doing substantial research into your specific situation. This is definitely a situation in which you would be well advised to retain an experienced California employment law attorney, and sit down with him or her and explore your options.