As business owners and members of the labor and employment law
community know all too well, California's AB 5 went into effect
on January 1 of this year. The law imposed the "ABC test"
for determining whether a worker should be classified as an
employee or an independent contractor. AB 5 also included a number
of "exceptions" to the ABC test, which, if proven by the
hiring entity, allow for application of the earlier
"Borello" test for determining independent
contractor status. The Borello test focuses primarily on
the right to control the manner and means by which a task is
accomplished. On September 30, 2020, Governor Newsom signed AB 323,
which provides newspaper carriers a one-year reprieve from AB
5's application. Therefore, through at least 2021, the
Borello test will apply to these workers.
