b'SACRAMENTO SUMMARYBy Michael J. Arnold & Michael Belote, Esq.Legislative Advocates2020 a Quiet Year?Nopen September 13, the Californiafor independent contractor classificationhave announced plans for an initiative Legislatureendedthe2019(basically, a common law control rule),on the November 2020 ballot.Now more legislative year, the first year of thewith an allegedly simple ABC test.Understates are considering moving towards the current 2019-2020 two-year session.InsideDynamex and now AB 5, a hiring entity mustDynamex model.The issue will certainly the Capitol, some called 2019 a quiet year,establish that it has met all three of thenot go away anytime soon.even boring.It is true that the sort of last- Dynamex tests in order to classify a worker minute shenanigans which have occurred inas an independent contractor. AB 5 was signed by the Governor on the past did not occur this year, for a varietySeptember 18, and goes into effect on of reasons.But it is emphatically not trueThe big problem with the ABC test is theJanuary 1, 2020.Importantly, for purposes that 2020 was a quiet year in terms of actionB prong, which requires that the workerof employer liability for misclassification, on major issues, as will be outlined below. be performing tasks outside of the usualthe exemptions are retroactive.course of business of the hiring entity. For the second year in a row, the CaliforniaSimple cases illustrate the difficulty: isThe second bombshell bill relevant to CMA Legislature has enacted bombshellUber in the business of providing rides,is AB 1482 (Chu).This is the rent cap bill legislation which will have nationalin which case drivers providing rides arewhich both imposes a cap on residential implications.Last year it was the package oflikely employees, or is Uber a technologyrent increases to an annual 5% plus changes bills which together enacted the Californiaplatform, in which case drivers are outsidein the consumer price index, and creates Consumer Privacy Act (CCPA), arguably thethe usual course of business and thereforea statewide just cause eviction standard. most consumer-protective privacy law inpotentially independent contractors? There are various important permutations the world.Last years package delayedin the bill, beyond the scope of this column, implementation of the CCPA until JanuaryMost significant for CMA members, AB 5 including a 15-year exemption for new 1, 2020, in order to provide additional timecontains an exemption in new Laborconstruction.for refinements and corrections before theCode Section 2750.3 (d)(1) for licensees of complex law goes into effect.In fact, athe Department of Real Estate, for whomIn theory, AB 1482 is intended to respond number of bills are awaiting gubernatorialclassification is determined pursuantto the states housing crisis, although action which would make narrow, targetedto Section 10032 (b) of the Businessopponents argue that the bill will stifle the refinements in the CCPA.Most notable isand Professions Code.This section, inproduction of new units.Another hope is AB 25 (Chau), which clarifies that employeesturn, permits real estate brokers andthat the bill will discourage others from are not consumers for purposes of thesalespersons to establish by contract thepursuing a broader rent control initiative law.This sensible clarification will preventindependent contractor relationship. Noteon the November 2020 ballot.Whether this employees from demanding deletion ofthat the bill contains no exemptions forwill work or not is unclear: one prominent their personnel files! unlicensed workers, or for those workingactivist in Los Angeles has indicated that under a CFL license. he intends to go forward with an initiative This year there are at least two stop- regardless.the-press bills of interest to CMA.TheBecause AB 5 contains no broad exemptions, first is AB 5 (Gonzalez), which bothinstead relying on a large number ofAs of this writing, Governor Newsom has codifies the (in)famous Dynamex decisionspecific exemptions for specific groups,yet to act on AB 1482, but a signature is a relating to independent contractorlegislative attention to Dynamex could govirtual certainty.classification, and provides a number ofon for a very long time.Legislators have exemptions for specific occupations.Asacknowledged already that many moreOh, and Governor Newsom has another many CMA members are aware, Dynamexexemptions will be considered, as early600-700 bills awaiting his signature or veto. replaced the long-standing Borello ruleas next year.Additionally, Uber and LyftMore soon.Points of InterestFall 2019Page 5'