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2021 California Laws Affecting REALTORS® Gov Hutchinson, Assistant General Counsel, California Association of REALTORS®
2021 New Laws Aecting REALTORS®
Member Legal Services Tel (213) 739-8282
Fax (213) 480-7724 October 1, 2020
This chart summarizes new laws passed by the California Legislature that may aect REALTORS® in 2021. For the full text of a law, click onto the legislative number or go to http://leginfo.legislature.ca.gov/ for California laws. A legislative bill may be referenced in more than one section.
Topic
Description
Appraisers: 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 appraisers are independent contractors or employees, and instead the more lenient multi factor test under Borello will be employed as long as six criteria have been met.
This law claries that appraisers 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.
Exempt relationships are governed by 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) as long as the following six criteria are met:
(1)The individual maintains a business location, which may include the individual’s residence, that is separate from the hiring entity.
New Laws 2021 1
swaL weN 1202