AB 5, which went into effect January 1, 2020, codified in the Labor Code the “ABC” test for determining independent contractor status that the California Supreme Court adopted in its 2018 decision in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903. Our bulletin regarding the details of AB 5 can be found here.
On Friday, September 4, 2020, Governor Newsom signed Assembly Bill 2257 (AB 2257) into law. AB 2257 served as clean-up legislation to AB 5, and amends certain exceptions to the “ABC” test set forth in AB 5. AB 2257 was an urgency bill so it becomes effective immediately.
AB 2257 also made the following changes to some of the conditions for eligibility for the “business service provider” exemption:
AB 2257 also created additional exemptions for various professions and occupations. For example, it exempts individuals who provide underwriting inspections and other services for the insurance industry, a manufactured housing salesperson, people engaged by an international exchange visitor program, consulting services, animal services, competition judges, licensed landscape architects, specialized performers teaching master classes, registered professional foresters, real estate appraisers and home inspectors, and feedback aggregators.
LCW can assist your school with questions about AB 2257 and AB 5, and its potential effects on your school.