CA SB990

Repeals Section 2750.3 of the Labor Code effective immediately and re-enacts it to become operative on January 1, 2022.

Establishes the "ABC test" for determining employee vs. independent contractor status: worker must be free from hiring entity's control, perform work outside the usual course of business, and be customarily engaged in an independent trade or business.

Exempts specified occupations and business relationships from the ABC test, including licensed professionals (physicians, lawyers, architects), real estate agents, newspaper carriers, and construction subcontractors, which instead use the Borello test.

Creates exemptions for professional services (graphic design, grant writing, fine artists, photographers, freelance writers) and business-to-business contracting relationships that meet specific criteria.

Delays the operative date of the ABC test provisions until January 1, 2022, allowing businesses and workers time to adjust to new classification standards.