Independent Contractor Update

AB 5 was signed into law, so the ABC test prevails… except for the following industry/professional exemptions.

The following is from Cal Chamber.

Industry/Professional Exemptions

 The following industries and professions are exempt from the ABC Test:

• Insurance agents
• Securities broker-dealers or investment advisers, who are registered with the SEC FIRA or licensed by California
• Physicians, surgeons, dentists, podiatrists, or psychologists
• Licensed lawyers, architects, private investigators, accountants and engineers
• Veterinarians
• Direct sales salespersons
• Licensed realtors
• Hair stylists/barbers, estheticians, cosmetologists, electrologists and manicurists, subject to narrow circumstances
• Commercial fishermen working on an American vessel
• Marketing, but the marketing work must be original and creative in character
• Registered, or exempt from registration, travel agents
• Graphic designers
• Grant writers
• Fine artists
• Enrolled agents licensed by the U.S. Treasury to practice before the IRS
• Payment processing agents
• Repossession agencies
• Administration of human resources, but the work must be intellectual, varied in character and non-standardized
• Photographers and photojournalists (35 submissions or less, and not applicable for motion picture industry, live shows, music videos, broadcast news, commercial productions)
• Freelance writers, editors or newspaper cartoonists (35 submissions or less)
• Motor club service providers

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AB 5 also has several broader exemptions:

• Business to Business Contracts:  For two businesses that contract for services that are provided directly to the contracting business, and not the customer/client (doesn’t include work for which a license is required by the Contractor’s State License Board).
• Construction Contractor/Subcontractor:  For this business relationship if certain conditions are met, including the subcontract assumes financial responsibility for all errors or omissions in labor or services, evidenced by insurance, indemnity clauses, performance bonds or warranties.
• Construction Trucking Services:  Trucking services only in the construction industry if the trucking contractor registers with the Department of Industrial Relations as a public works contractor, even if the work is not public work; utilizes its own employees to perform the work; the trucking contractor does not utilize a broker; and exemption sunsets on January 1, 2022.