Bill > AB816

This bill creates a new exemption to California's ABC test for worker classification, specifically for merchandisers in the consumer-packaged goods industry. Under the proposed exemption, a merchandiser can be classified as an independent contractor if they meet several specific conditions, including voluntarily registering with a business, being able to freely negotiate their rates, performing work without direct supervision, having the business provide private occupational accident insurance, not being required to accept specific contracts or undergo training, and not being restricted from working with other businesses. The bill adds this new category of professional services (merchandisers) to the existing list of exemptions from the strict employee classification test, which means these workers can more easily be considered independent contractors rather than employees. This change is significant for businesses in the consumer-packaged goods industry that rely on merchandisers to manage in-store inventory and product placement, as it provides more flexibility in how these workers can be classified and compensated. The bill also makes some minor, non-substantive changes to existing business-to-business contracting relationship provisions.

Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB816