AB 5, which was enacted last fall, codified the “ABC Test” pursuant to the California Supreme Court’s Dynamex decision. AB 5 also contains 57 different exemptions for specified professions. 

      While nearly three dozen measures in the Assembly and Senate would create additional exemptions, SB 900 was recently amended to add 12 exemptions. SB 900 is authored by the Chairman of the Senate Labor & Industrial Relations Committee, Jerry Hill (D – San Mateo). SB 900 also retains all 57 exemptions from AB 5, but the bill reorganizes them into new sections of the Labor Code.

      SB 900 (Hill) basically does four things:

  1.     Amends Labor Code Section 50.6 dealing with the Department of Industrial Relations (DIR) assisting and cooperating with the U.S. Department of Labor (USDOL) in enforcing the Fair Labor Standards Act in California; makes technical changes to the code section; and, allows DIR to be reimbursed by the USDOL for reasonable costs associated with assistance and cooperation.
  2.     Repeals Labor Code Section 2750.3, which is AB 5.
  3.     Adds new Article 1.5 (commencing with Section 2775) to the Labor Code, which is the reorganized language from AB 5 along with the 12 additional exemptions.
  4.     Amends Unemployment Insurance Code Section 650 dealing with the definition of “employment” and excluding specified services; adds manufactured housing to the list; and, excludes from the definition of a retail or wholesale establishment a bus, van or truck from which an individual seller sells products used for repair and maintenance of motorized vehicles.

      The following exemptions are proposed to be added to the law by SB 900: 

      In addition, of interest are recent amendments to SB 997 (Borgeas), which would make AB 5 prospective in application. SB 997 basically does three things:

  1. Makes numerous technical changes to Labor Code Section 2750.3, which is AB 5.
  2. Amends subdivision (i)(1) related to the effective date. Current law provides that the codification of the ABC Test in subdivision (a) does not constitute a change in, but is declaratory of existing law, as it relates to the Industrial Welfare Commission’s Wage Orders and violations of the Labor Code related to wage orders. This bill strikes that provision and instead specifies that the provisions of this section apply only to work that was performed after the Dynamex decision was adopted, which is May 1, 2018.
  3. Deletes subdivision (i)(3). Current law provides that, with two exceptions, this section of the Labor Code applies to work performed after January 1, 2020.

      When the Legislature reconvenes on Monday, May 4, we will have to see whether either of these bills, as well as the over thirty other bills proposing amendments to AB 5, are considered by the Assembly and Senate.