A new law just went into effect that revises California’s test for determining whether a worker is considered an employee or an independent contractor, slicing off a number of various work arrangements from having to comply with the stringent ABC test. The bad news is that the new list of exemptions doesn’t go as far as most businesses would have liked. The good news is that the new law creates a better situation for “business to business” arrangements that had been troubled by California’s recent adoption of the ABC test. What do California businesses need to know about this latest development?
The California legislature just closed the books on one of the most interesting sessions in the State’s history. Not only did it itself shut down completely on two different occasions due to the COVID-19 pandemic, the last few days of session featured the entire Republican contingent of the Senate quarantined and debating and voting on legislation remotely via video feed. Bizarre to say the least.