CA SB997

Deletes language stating that the ABC test (three-part employee classification test) is declaratory of existing law, making it a substantive change in law rather than a clarification.

Establishes that the Dynamex court decision and ABC test do not apply to work performed before April 30, 2018.

Creates broad exemptions from the ABC test for specified occupations including licensed professionals (doctors, lawyers, accountants, engineers), insurance agents, securities brokers, direct sales personnel, newspaper distributors/carriers, and various service providers.

Establishes a "professional services" category governed by the Borello test instead of ABC, covering marketing, graphic design, writing, photography, and licensed beauty professionals who meet specific criteria including maintaining separate business locations and setting their own rates.

Provides exemptions for business-to-business contracting relationships, construction industry subcontractors, and referral agencies that connect clients with service providers when specified criteria are met.