{"id":16597,"date":"2022-11-02T21:09:48","date_gmt":"2022-11-02T21:09:48","guid":{"rendered":"https:\/\/fieldnation.com\/?p=16597"},"modified":"2025-05-09T07:44:05","modified_gmt":"2025-05-09T12:44:05","slug":"ab2257","status":"publish","type":"post","link":"https:\/\/fieldnation.com\/resources\/ab2257","title":{"rendered":"What is California Assembly Bill 2257?"},"content":{"rendered":"

Assembly Bill 2257 (formerly AB5) is an updated piece of legislation restricting the classification of an independent contractor in the state of California to those individuals able to meet all three requirements of an \u201cABC\u201d test. In order for a worker to be classified as an independent contractor, they must:<\/span><\/p>\n

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  1. A) Be free from the control of the company they are working for,<\/span><\/li>\n
  2. B) Perform work that\u2019s outside the course of the company\u2019s usual business, and<\/span><\/li>\n
  3. C) Have their own independently established trade, occupation, or business.<\/span><\/li>\n<\/ol>\n

    AB 2257 was passed shortly after AB5 in September of 2020.<\/span> The focus of the bill is <\/b>clarifying, and in some cases, expanding the industry-specific exemptions set out in AB 5<\/b><\/a>.<\/b><\/p>\n

    As a reminder, upon its passage in 2020, AB5 codified and expanded on the 2018 California Supreme Court Dynamex decision. In 2004, Dynamex \u2014 a nationwide same-day delivery service \u2014 converted all of its drivers from employees to independent contractors, leading to litigation initiated by a former employee. The Court embraced a standard presuming that all workers are employees, not contractors, and placed the burden on employers to establish the appropriateness of classifying an individual as an independent contractor based on the newly adopted \u201cABC\u201d test.<\/span><\/p>\n

    Under AB5, classification as either an independent contractor or an employee affects the applicability of labor laws such as minimum wage, overtime pay, and workers\u2019 compensation. States and cities will have the right to file suit against companies over misclassification, overriding common arbitration agreements currently in use.<\/span><\/p>\n

    California\u2019s legislation on labor classification has set a precedent for legislative developments in other states\u2013\u2013namely Washington, New Jersey, and Massachusetts.<\/span><\/p>\n

    Field Nation has consistently evolved alongside these new regulations to meet the needs of our users. In 2020, we added visibility to technicians that have been registered as an employee of a business. The companies employing these technicians must also confirm they have the following:\u00a0<\/span><\/p>\n