CA AB2489

During the COVID-19 state of emergency and 90 days thereafter, respiratory therapists and other medical personnel not covered by existing exemptions are subject to the Borello test rather than the ABC test for worker classification.

The ABC test (three-part test) applies to determine employee vs. independent contractor status for purposes of the Labor Code, Unemployment Insurance Code, and Industrial Welfare Commission wage orders, unless an express exception applies.

Specified occupations and business relationships are exempted from the ABC test and instead governed by the Borello multifactor test, including licensed professionals, insurance agents, physicians, real estate licensees, and various other categories.

Professional services (marketing, graphic design, photography, writing, etc.), business-to-business contracts, construction subcontracts, and referral agency relationships are subject to specific criteria to qualify for Borello test application.

The Attorney General and certain city attorneys may pursue injunctive relief to prevent misclassification of employees as independent contractors.