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California Consultant Worker Classification

| Dec 15, 2020 | New Laws |

The 2018 California Supreme Court Dynamex decision and 2019 California Assembly Bill AB 5 drastically altered California worker classification standards, implementing the very stringent “ABC Test.” However, California Assembly Bill AB 2257, which was passed and signed into law in September 2020, carved out an exception for “consultants” working with “referral agencies.” Consulting is defined as “providing substantive insight, information, advice, opinions, or analysis that requires the exercise of discretion and independent judgment and is based on an individual’s knowledge or expertise of a particular subject matter or field of study.” This is incredibly good news for those professional consultants in the Information Technology industry, as well as any other industry where expertise is required. Contact us if you would like to discuss whether this change in California law may apply to your business.

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