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California Law Regarding Employee vs. Contractors

California Assembly Bill 5, signed into law on 9/18/19 establishes more strict standards for classifying workers as independent contractors. This new law may affect all businesses who hire workers in the course of their operations. Effective in 2020, a company hiring workers would have to meet all these conditions to be able to classify a worker as an independent contractor:
1) The worker has to be free from control and direction of company.
2) The worker performs work that is outside the usual course of the company's business.
3) The worker is engaged in an independently established trade, occupation or business.
Exceptions to this rule apply in the following business types:
Doctors, Dentists, Veterinarians, Lawyers, Architects, Engineers, Private Investigators, Accountants, Securities broker-dealers, Investment advisers, Insurance agents, Human resources administrators, Travel agents, Marketers, Graphic designers, Grant writers, Fine artists and certain Photographers or Photojournalists, certain Writers and Editors.