Bill giving carriers and distributors one-year reprieve from new restrictive independent contractor law signed by governor
Legislation negotiated by CNPA that would exempt newspaper carriers and distributors from the newly enacted law that makes it more difficult for businesses to use independent contractors in their operations was signed into law by Gov. Gavin Newsom on Wednesday. The carrier exemption is set to expire on Jan. 1, 2021.
For the next 12 months, the exemption in AB 170, by Assemblywoman Lorena Gonzalez (D-San Diego), allows newspapers to use a different standard, called the Borello standard, when determining whether carriers and distributors are independent contractors.
The new standard to be used to properly classify all other workers was enacted in AB 5, also by Gonzalez. AB 5 was signed into law several weeks ago by the Governor. AB 5 codified the ABC test which makes it nearly impossible for many workers to be classified as independent contractors.
Prior to the passage and signing of AB 5, CNPA was successful in negotiating exemptions from the ABC test for freelancers.
For a more detailed analysis of ABC test, the Borello standard and AB 5 please see this article.