California Updates ABC Test Law – Effective Immediately

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California Governor Newsom recently signed A.B. 2257 into law. The new law further changes California’s law concerning classifying workers as employees or as independent contractors. Last year, California “clarified” its law on the issue by enshrining a three part test—the “ABC test.” That law made most every worker an employee, subject to a few exceptions. The new law—A.B. 2257—adds a host of exemptions. The classification of landscape architects, registered professional foresters, real estate appraisers, and home inspectors, among others, are now exempted from the ABC test and are subject to more traditional analysis of their status as independent contractors.

In addition to the changes concerning individual worker exemptions, A.B. 2257 broadens the business-to-business exemption and expands A.B. 5’s enforcement provision by allowing district attorneys to bring actions for injunctive relief under this law. The new law takes effect immediately.

The full text is available HERE.

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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