AB 1561

  • California Assembly Bill
  • 2021-2022 Regular Session
  • Introduced in Assembly
  • Passed Assembly May 27, 2021
  • Passed Senate Sep 08, 2021
  • Became Law Sep 30, 2021

Worker classification: employees and independent contractors.

Abstract

Existing law requires a 3-part test, commonly known as the "ABC" test, to determine if workers are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission. Under the ABC test, a person providing labor or services for remuneration is considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity's business, and the person is customarily engaged in an independently established trade, occupation, or business. Existing law charges the Labor Commissioner with the enforcement of labor laws, including worker classification. Existing law exempts specified occupations and business relationships from the application of the ABC test described above. Existing law, instead, provides that these exempt relationships are governed by the multifactor test previously adopted in the case of S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341. These exemptions include services provided by a licensed manicurist, subject to the manicurist meeting specified conditions. Existing law makes this exemption for licensed manicurists inoperative on January 1, 2022. This bill would extend the inoperative date of this exemption for licensed manicurists to January 1, 2025. Existing law exempts the relationship between a contractor and an individual performing work pursuant to a subcontract in the construction industry, if the contractor demonstrates that specified criteria are satisfied, including that the subcontractor is licensed by the Contractors State License Board and the work is within the scope of that license. Existing law, for construction trucking services, provides that the requirement of having this license does not apply to a subcontractor providing construction trucking services for which a contractor's license is not required, as specified. This provision applies to work performed before January 1, 2022. This bill would extend the applicable timeframe for this provision to work performed before January 1, 2025. Existing law exempts the relationship between a data aggregator and an individual providing feedback to the data aggregator, if certain conditions are satisfied. These conditions include, among others, that any consideration paid for the feedback provided, if prorated to an hourly basis, is an amount equivalent to or greater than the minimum wage. This bill would delete the above-described condition regarding the consideration paid. The bill would revise the exemption to instead apply to the relationship between a data aggregator and a "research subject," as defined, and would make related, conforming changes. Existing law also exempts a person or organization that is licensed by the Department of Insurance or a person who provides underwriting inspections, premium audits, risk management, or loss control work for the insurance and financial service industries. This bill would expand that exception to also apply to a person who provides claims adjusting or third-party administration, as defined. Existing law also exempts a manufactured housing salesperson, subject to specified legal obligations and regulations governing manufactured housing salespersons. This bill, in regard to the above exemption, would provide that the statutorily imposed duties of a manufactured housing dealer are not factors to be considered under the Borello test. This bill would incorporate additional changes to Section 2783 of the Labor Code proposed by AB 1506 to be operative only if this bill and AB 1506 are enacted and this bill is enacted last.

Bill Sponsors (1)

Committee on Labor and Employment

     
Author

Votes


Actions


Sep 30, 2021

California State Legislature

Chaptered by Secretary of State - Chapter 422, Statutes of 2021.

California State Legislature

Approved by the Governor.

Sep 20, 2021

California State Legislature

Enrolled and presented to the Governor at 3 p.m.

Sep 09, 2021

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0.).

Sep 08, 2021

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.).

Assembly

In Assembly. Concurrence in Senate amendments pending.

Sep 07, 2021

Senate

Read second time. Ordered to third reading.

Sep 03, 2021

Senate

Read third time and amended. Ordered to second reading.

Aug 17, 2021

Senate

Read second time. Ordered to third reading.

Aug 16, 2021

Senate

From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

Jul 13, 2021

Senate

From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 12). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Jun 09, 2021

Senate

Referred to Com. on L., P.E. & R.

  • Referral-Committee
Com. on L., P.E. & R.

May 28, 2021

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

May 27, 2021

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0.)

May 24, 2021

Assembly

Read second time. Ordered to Consent Calendar.

May 20, 2021

Assembly

Read second time and amended. Ordered returned to second reading.

May 19, 2021

Assembly

From committee: Amend, and do pass as amended. To Consent Calendar. (Ayes 15. Noes 0.) (May 19).

Apr 21, 2021

Assembly

In committee: Hearing postponed by committee.

Apr 08, 2021

Assembly

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 8). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Mar 11, 2021

Assembly

Referred to Com. on L. & E.

  • Referral-Committee
Com. on L. & E.

Feb 26, 2021

Assembly

From printer. May be heard in committee March 28.

Feb 25, 2021

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB1561 HTML
02/25/21 - Introduced PDF
05/20/21 - Amended Assembly PDF
09/03/21 - Amended Senate PDF
09/14/21 - Enrolled PDF
09/30/21 - Chaptered PDF

Related Documents

Document Format
04/06/21- Assembly Labor and Employment PDF
05/17/21- Assembly Appropriations PDF
07/09/21- Senate Committee on Labor, Public Employment and Retirement PDF
08/18/21- Sen. Floor Analyses PDF
09/07/21- Sen. Floor Analyses PDF
09/08/21- ASSEMBLY FLOOR ANALYSIS PDF

Sources

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