Worker status: independent contractors: physical therapists.
If passed, AB 2458 would shift the legal landscape for physical therapists, allowing greater flexibility in their work arrangements and reducing the strict control under which they are evaluated for independent contractor status. This change could make it easier for physical therapists to maintain their independent practices without the financial and administrative burdens imposed by employee status. The amendment is expected to mainly benefit established physical therapists who may otherwise be subject to rigorous scrutiny regarding their classification as independent contractors under the current ABC test.
Assembly Bill 2458, introduced by Assembly Member Melendez, proposes an amendment to Section 2750.3 of the Labor Code, specifically concerning the classification of workers as independent contractors or employees. The bill aims to exempt physical therapists from the ABC test established in the Dynamex Operations W. Inc. case, which generally presumes that workers are employees unless certain criteria are met. By adding physical therapists to the list of exempt occupations, the bill effectively allows these professionals to operate under previous regulations dictated by the Borello test instead, which was in place prior to the Dynamex ruling.
The bill has generated a spectrum of opinions. Supporters argue that the amendment is necessary to support the independence of physical therapists, providing them with a clearer framework for establishing their professional practices without the limitations posed by Dynamex. Conversely, critics express concerns that easing restrictions could lead to misclassification of workers in other sectors, potentially undermining employee protections and bypassing important labor laws designed to safeguard workers' rights. The debate centers on finding a balance between professional autonomy and the need for accountability within service industries.