The Governor has signed Assembly Bill 1506 (AB 1506) which extends the existing exemption for three more years for newspaper distributors and carriers from the “ABC Test” under Dynamex and Assembly Bill 5. The bill takes into account the reality that newspaper carriers often work for more than one newspaper, and requiring carriers to be classified as employees, would limit carriers’ opportunities and drive up the cost of newspaper deliveries. The bill also requires newspaper distributors to submit specified information to the Labor and Workforce Development Agency on the number of carriers for which the publisher or distributor paid and did not pay payroll taxes for, as well as the wage rates and information to demonstrate compliance of their carrier with the Borello test, which is a multi-factor test for determining worker classification.
Jackson Lewis will continue tracking state legislation that is relevant to employers. If you have questions about the effects of this or other recent legislation contact a Jackson Lewis attorney to discuss.