California Legislation Signed To Extend Exemptions From AB 5 For Certain Industries

Jackson Lewis P.C.

Governor Newsom has signed Assembly Bill 1561 (AB 1561) to extend the sunset dates on the exemptions granted to licensed manicurists and construction trucking subcontractors from the provisions of Assembly Bill 5 (AB 5). AB 5 sets forth the test for whether a worker is an independent contractor or employee.

The exemptions will now sunset on January 1, 2025, providing each industry three additional years to determine compliance with AB 5.

AB 1561 also clarifies the scope of the exemption granted to a data aggregator and a research subject who willingly engages with a data aggregator to provide individualized feedback. The new legislation further clarifies that the exemption for the insurance industry extends to an individual providing claims adjusting or third-party administration work. Finally, as to the existing exemption for manufactured housing salespersons, AB 1561 specifies that the statutorily imposed duties of a manufactured housing dealer under the Health and Safety Code are not factors to be considered under the worker classification test.

Jackson Lewis will continue tracking state legislation that is relevant to employers. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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