• New Members

  • More Exemptions Needed on Bill Codifying Independent Contractor Test

    • Share:
    August 27, 2019

    At this time, AB 5 is the only legislative vehicle still in play regarding Dynamex Operations West, Inc. v. The Superior Court of Los Angeles County, which set forth a new test for determining independent contractor status, and in my opinion, is nowhere close to being in final form.  As previously discussed, AB 5 codifies the ABC test for Wage Orders, but also expands the test to the Labor Code and Unemployment Insurance Code.  AB 5 also sets forth a number of exemptions from the application of the ABC test (doctors, lawyers, accountants, hair stylists, real estate agents, insurance agents, direct sellers, and more).

    There are still a number of professions that should be included in the exemptions as these professions have historically operated as independent contractors, pay high rates, and there is no evidence of rampant misclassification abuse.  Professions such as speech pathologists, physical therapists, occupational therapists, audiologists, animal trainers, physical trainers, travel agents . . . and the list continues. Read more.