CA SB806

Repeals existing ABC test from Assembly Bill 5 that codified the Dynamex decision, which made it difficult for workers to qualify as independent contractors.

Establishes new modified ABC test for worker classification: hiring entity must prove worker is (1) free from control and direction, AND either (2) work is outside usual business or place of business, or worker pays for workspace, OR (3) worker operates independently in same trade/occupation.

Applies new test to all pending worker classification claims filed on or after January 1, 2018, in civil court or administrative actions.

Declares bill an urgency statute effective immediately due to economic disruption from COVID-19 pandemic.

Legislative intent includes overturning the Dynamex decision and allowing approximately one million independent contractors to continue working as freelancers who would be reclassified as employees under Assembly Bill 5.