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New Laws for 2020: AB 2257 (California)

 

Last week, California Governor Gavin Newsom signed AB 2257 into law which adds a host of occupations that are exempt from the ABC Test for independent contractor classification as codified in Assembly Bill 5.

Readers are aware that following the passage of Assembly Bill 5 last year, critics of the legislation were quick to point out that the codification of the ABC Test (to determine whether a worker was an independent contractor or an employee) made it more difficult to earn a living as employers chose to not retain workers since many were now classified as employees under the ABC Test.  (The ABC Test stipulates that a worker is an employee unless A) the worker is free from the company’s control and direction; B) the worker performs work that is outside the usual course of the hiring entity’s business; and C) the worker is customarily engaged in an independently established trade, occupation, or business of the same natures as that involved in the work performed.)

This new list of occupations added under AB 2257 include consultants, photo editors, photojournalists, pool cleaners, still photographers, tutors, and web designers.  These new occupations that have been added via AB 2257 have their own requirements to be classified as an employee by way of a multi factor test that is more stringent than the ABC Test.

Of note, after Govern Newsom signed the legislation into law on September 4th, it became effective immediately.


For additional information:  http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB2257

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