New Law Expands and Clarifies Definition of Independent Contractor in California
On September 4, Governor Newsom signed Assembly Bill (AB) 2257. This new law modifies AB 5, whose strict ABC test resulted in many contractors being classified as employees. When passed, AB 5 impacted online content providers, news services, transportation companies, musicians, artists, and other California businesses that have traditionally relied on a contractor-based workforce.
AB 2257 provides much needed clarification of several ambiguities in AB 5, which exempted certain occupations and business relationships from the stringent ABC test and, instead, subjected them to the multifactor test described in S. G. Borello & Sons, Inc. v. Department of Industrial Relations, 48 Cal. 3d 341 (1989). These occupations and relationships included but were not limited to:
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DOL Issues Guidance for Employers on Tracking Remote Employee Hours
Employers across California have responded to the COVID-19 pandemic by transitioning their workforces to work remotely. Consequently, questions have arisen about employers’ obligations under the Fair Labor Standards Act (FLSA) to track unscheduled hours worked by their non-exempt employees.
Last week, the U.S. Department of Labor’s Wage and Hour Division (WHD) responded by issuing Field Assistance Bulletin (FAB) 2020-5, which provides employers with guidance on tracking compensable working hours for remote employees.
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California’s COVID-19 Employer Playbook
On July 28, 2020, the California Department of Public Health (CDPH) updated its new COVID-19 Employer Playbook. The purpose of the Playbook is meant to provide “guidance for employers to help them plan and prepare for reopening their business and to support a safe, clean environment for workers and customers.” The Playbook provides industry-specific guidelines and checklists for safely reopening businesses such as performing a detailed risk assessment, creating worksite specific COVID-19 prevention plans, worker training for preventing the spread of the coronavirus, social distancing guidelines, and directions for managing and preventing outbreaks in the workplace.
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