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AB-2075 Worker status: independent contractors: hiring entity liability.(2019-2020)

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Date Published: 03/12/2020 09:00 PM
AB2075:v98#DOCUMENT

Amended  IN  Assembly  March 12, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2075


Introduced by Assembly Member Kiley
(Principal coauthor: Assembly Member Melendez)
(Coauthors: Assembly Members Brough, Fong, Lackey, and Mathis)
(Coauthors: Senators Dahle and Morrell)

February 05, 2020


An act to amend Section 1051 of the Military and Veterans Code, relating to veterans. add Section 2750.35 to the Labor Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 2075, as amended, Kiley. Veterans: Veterans’ Homes. Worker status: independent contractors: hiring entity liability.
Existing law requires a 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. Under the ABC test, a person providing labor or services for remuneration is considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation, or business. Existing law charges the Labor Commissioner with the enforcement of labor laws, including worker classification.
Existing law exempts specified occupations and business relationships from the application of the ABC test described above. Existing law, instead, provides that these exempt relationships are governed by the multifactor test previously established in the case of S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341.
This bill would, until January 1, 2021, prohibit the application of the ABC test to determine the liability of a hiring entity for damages, injunctive relief, or civil penalties based upon the classification of workers as independent contractors, and instead would require that employer liability to be based upon the multifactor test set forth in the case of Borello. The bill would provide that its provisions apply retroactively, as specified.

Existing law establishes the Veterans’ Home of California system within the Department of Veterans Affairs. A veterans’ home is any facility operated by the department for the provision of long-term care, assisted living, adult day health, independent living, or other health care services to eligible veterans, as defined. Existing law requires the department to create a transparent admissions and waiting process for admission to the homes and to have information about the process, including a way to submit applications and the projected wait time, available on their internet website.

This bill would require the department to provide information and links on its internet website for alternative services that may meet the needs of, or better serve, homeless veterans and their families. This bill would make other technical and conforming changes.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 2750.35 is added to the Labor Code, immediately following Section 2750.3, to read:

2750.35.
 (a) Notwithstanding subdivision (a) of Section 2750.3, or any other provision of law, until January 1, 2021, the ABC test shall not be used to determine the liability of a hiring entity for damages, injunctive relief, or civil penalties based upon the classification of workers as independent contractors.
(b) Until January 1, 2021, any hiring entity liability based upon the improper classification of workers as independent contractors shall be based upon the multifactor test set forth in the case of S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341.
(c) These provisions shall apply retroactively to all claims not yet finalized, for liability based upon any facts or conduct occurring before January 1, 2021.

SECTION 1.Section 1051 of the Military and Veterans Code is amended to read:
1051.

(a)The department shall maintain a transparent admissions and waiting list process for admission to the homes.

(b)The department shall have a page on its internet website that does all of the following:

(1)Explains the application and waiting list process developed in subdivision (a), including an explanation of the process, laws, and regulations pertaining to admission, the wait list, and continuum of care.

(2)Allows online submission of applications.

(3)Provides a reasonable level of information to applicants about the projected wait time at each home for various levels of care, enhancing applicant’s ability to make long-term care planning decisions.

(4)Allows an applicant to check their current wait list status and overall application status.

(5)Provides information and links for alternative services that may meet the needs of, or better serve, homeless veterans and their families.