2020 has been a year of constant changes for California employers. Here are some big developments that employers cannot afford to miss in 2021.
The California legislature passed two bills this year that amend Assembly Bill 5 which set forth the requirements for classifying a worker as an independent contractor. Assembly Bill 2257 recasts, clarifies, and expands exemptions under Assembly Bill 5, including adding exemptions for referral agencies and professional services, such as photographers. Assembly Bill 323 similarly sets forth exemptions for newspaper carriers from Assembly Bill 5 requirements.
California voters also voted in favor of Proposition 22 which allows for the classification of individuals engaged in app-based transportation services, such as rideshare and delivery drivers, as independent contractors. Proposition 22 provides workers with minimum compensation levels, health insurance subsidies to qualifying drivers, medical costs for on-the-job injuries, and prohibits drivers from working more than 12 hours in a 24-hour period for a single company. It requires companies to develop sexual harassment policies, conduct criminal background checks, and require safety training for drivers.