Worker classification: employees and independent contractors: licensed manicurists.
If enacted, AB 1818 will allow licensed manicurists to continue their classification exemption under the Borello test rather than the stricter ABC test for determining contractor status. This amendment means that licensed manicurists can maintain flexibility in their business arrangements without the constraints imposed by the ABC test, which requires more evidence of independence from the employer. This could enhance the ability of manicurists to operate more freely but may alter their legal protections compared to traditional employees.
Assembly Bill 1818, introduced by Assembly Member Nguyen, aims to amend Section 2778 of the Labor Code concerning worker classification. Currently, California employs a three-part ABC test to determine whether workers should be classified as employees or independent contractors. Under this test, workers are presumed to be employees unless the hiring entity can demonstrate that they are free from the hiring entity's control, perform work outside of the usual business, and are engaged in an established trade. AB 1818 proposes to indefinitely extend an existing exemption for licensed manicurists from the ABC test by removing a previously established expiration date of January 1, 2025.
There are notable points of contention surrounding AB 1818. Critics may argue that extending the exemption for manicurists could lead to inconsistent classifications across the labor market, potentially undermining broader efforts aimed at improving labor rights and protections for all workers. Proponents assert that the bill supports small businesses and entrepreneurship among licensed individuals, allowing them to operate independently without being classified as employees. The debate centers around balancing the need for worker protections with the flexibility required by certain professions.