Worker classification: employees and independent contractors: licensed manicurists.
If enacted, AB 231 would have significant implications for the status of licensed manicurists in California. By preserving the existing exemption, licensed manicurists will continue to be classified as independent contractors under specific conditions defined by the Borello test rather than the stricter ABC test. This could encourage individuals to enter the profession without the limitations imposed by employee status, allowing them more flexibility in managing their work schedules and client relationships. The ongoing debate concerns whether this exemption helps the flexibility of the workforce or undermines protections typically afforded to employees.
Assembly Bill 231, introduced by Assembly Member Nguyen, seeks to amend Section 2778 of the Labor Code related to the classification of workers as either employees or independent contractors, specifically focusing on licensed manicurists. The bill aims to maintain the exemption for licensed manicurists from the ABC test for determining employment status. Previously, this exemption was set to become inoperative on January 1, 2022, but AB 231 proposes to remove this termination date, thereby extending the exemption indefinitely. This legislative change is intended to provide more stability and clarity for manicurists regarding their employment classification.
The bill has sparked discussions regarding worker rights and protections, drawing contrasting views from various stakeholders. Proponents of the bill argue that it supports the entrepreneurial spirit by allowing manicurists to operate independently, while opponents raise concerns about the potential for exploitation of workers under the independent contractor model. Critics believe that removing the ABC test will reduce safeguards against unfair working conditions, thus compromising manicurists' rights to fundamental labor protections such as minimum wage and benefits.