CA AB1850

Establishes an ABC test to determine worker classification: workers are presumed employees unless hiring entities prove workers are free from control, perform work outside the usual business, and are customarily engaged in independent trade.

Exempts bona fide business-to-business contracting relationships from the ABC test if criteria are met, including written contracts, business licenses, and separate business locations; removes restriction that exemption applied only to business entities.

Exempts referral agencies connecting clients with service providers (tutors, photographers, coaches, pet care, etc.) if specified criteria are satisfied; requires agencies to verify business licenses annually and removes individual worker restriction.

Revises professional services exemptions to include still photographers, photojournalists, videographers, photo editors, freelance writers, translators, illustrators, and cartoonists under contract with specified terms; adds exemptions for specialized performing arts instructors, appraisers, and insurance industry workers.

Adds exemptions for musicians performing single-engagement live performances, international exchange program participants, competition judges, and occupations in sound recording and music composition industries; applies retroactively to existing claims where it relieves employer liability.