Worker status: independent contractors: newspaper distributers or newspaper carriers.
If enacted, SB 867 would eliminate the expiration date of January 1, 2021, which currently provides a temporary classification exemption for newspaper distributors and carriers. As a result, these workers will remain outside the stringent employee classification requirements under the Dynamex ABC test. This could lead to significant implications for their access to unemployment benefits, healthcare, and other labor protections normally afforded to employees. The classification affects not only the workers themselves but also the publishers and distributers who engage them, potentially leading to changes in labor costs and management practices in the industry.
Senate Bill No. 867 seeks to amend Section 2750.3 of the Labor Code in California, specifically concerning the employment status of newspaper distributors and carriers as independent contractors. The bill aims to indefinitely extend an existing temporary exemption that allows these workers to be classified as independent contractors, thereby not applying the ABC test established in the landmark case Dynamex Operations W. v. Superior Court. This amendment would mean that the criteria for determining if a worker is an employee or independent contractor will not apply to newspaper distributors indefinitely, which has implications for how these workers are treated under state labor laws.
The bill has generated debate among stakeholders, with supporters arguing that the exemption maintains operational flexibility and helps sustain an economic model that supports independent work in the newspaper sector. Critics, however, contend that it prolongs a lack of essential labor protections for these workers, preventing them from accessing critical benefits that employees receive, thereby potentially perpetuating economic inequality for those employed in this role. The ongoing tension between ensuring worker protections and promoting business flexibility is a central theme of the discussions surrounding SB 867.