I own a small hair salon in Los Gatos, California. An employee took me to the labor board claiming she was an employee not an independent contractor. I lost and owe her pay, back pay, damages, interest, and now the Labor Board is fining me. Should I appeal? Are there additional penalties that I will be owed? I am afraid now that the IRS and Franchise Tax Board are going to fine me too! I didn't know I was doing anything wrong; all the salons call their employees Independent Contractors.
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