It is well-known that California law is often more strict than federal law. Just as California handles overtime differently than the federal Fair Labor Standards Act (FLSA), California law also treats aspects of overtime exemptions differently than the FLSA. One such difference is the Outside Salesperson exemption.

Under the FLSA, an outside sales employee is

Governor Newsom has signed Assembly Bill 1561 (AB 1561) to extend the sunset dates on the exemptions granted to licensed manicurists and construction trucking subcontractors from the provisions of Assembly Bill 5 (AB 5). AB 5 sets forth the test for whether a worker is an independent contractor or employee.

The exemptions will now sunset