California Employment Law Update  – Independent Contractors

California

From JDSupra, Connor Meggs and Eugene Ryu discusses recent laws enacted in California including several affecting independent contractors. Connor and Eugene write:

The October edition of the Essentials marks the end of California’s legislative session. As a helpful summary for employers, we have outlined key provisions of the new California employment laws for 2022:

WAGE & HOUR LAWS

AB – 1003 — Makes Wage Theft Punishable as Grand Theft

Any intentional theft of wages in an amount greater than nine hundred fifty dollars (US$950) from any one employee, or two thousand three hundred fifty dollars (US$2,350) in the aggregate from two or more employees, by an employer in any consecutive 12-month period, can be punishable as either a misdemeanor or felony, and the wages or other compensation subject to such a prosecution are recoverable as restitution. This bill treats independent contractors as employees.

INDEPENDENT CONTRACTOR

AB – 1023 — Contractors Who Bid and Work on Public Works Contracts

AB 1023 updates existing requirements to require contractors to provide compliance monitoring and payroll information to the Labor Commissioner every 30 days while work continues and 30 days after the final day of work performed. It also requires such records to be transmitted electronically and prohibits the Labor Commissioner from levying penalties until 14 days after the deadline.

AB – 1506 — Exemption from the ABC Independent Contractor Test for Newspaper Distributors and Carriers

AB 1506 extends the temporary exemption from the ABC test for newspaper distributors and carriers for an additional three years until 1 January 2025. The bill also requires that every newspaper publisher or distributor that hires or contracts with newspaper carriers provide information related to their workforce, including the number of carriers, the average wage, and the number of wage claims filed with the LWDA.

AB – 1561 — Extends and Expands Various Exemptions from the ABC Independent Contractor Test

AB 1561 extends the temporary exemption from the ABC test for licensed manicurists and construction trucking subcontractors for three years until 1 January 2025. The bill also expands the existing exemption for persons who provide underwriting inspections, premium audits, and risk management for the insurance and financial services industries to also include a person who provides claims adjusting or third-party administration services. The bill also clarifies the exemption for data aggregators and housing salespersons.

Read the full story at The Essentials – California Employment Law Update | K&L Gates LLP – JDSupra

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