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Home Inspectors: Independent Contractor Classi􏰀cation
Eective September 4, 2020 as urgency legislation.
The ABC test and the Dynamex case do not apply to the determination of whether home inspectors are independent contractors or employees.
This law claries that home inspectors are exempted from the ABC test in determining their status as independent contractors or employees.
The California Supreme Court case of Dynamex (Dynamex Operations W. Inc. v. Superior Court (2018) 4 Cal.5th 903) and Assembly Bill 5, passed last year, implement a strict 3-part test, commonly known as the “ABC” test, to determine if workers are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission.
For home inspectors their employment status will likely be governed the more lenient multifactor test previously adopted in the Borello case (S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341).
Assembly Bill 2257 is codied as Labor Code section 2775 et seq.
Eective September 4, 2020 as urgency legislation.
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