All posts in Legislation

The California Legislature has passed AB5 which seeks to clarify the difference between independent contractors and employees.  The key feature (edited a little for brevity) is:

Section 2750.3 is added to the Labor Code, to read:

2750.3. (a) (1) … a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that all of the following conditions are satisfied:

(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

(B) The person performs work that is outside the usual course of the hiring entity’s business.

(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

(2) Notwithstanding paragraph (1), any exceptions to the terms “employee,” “employer,” “employ,” or “independent contractor,” and any extensions of employer status or liability, that are expressly made by a provision of this code, …, including, but not limited to, the definition of “employee” in subdivision 2(E) of Wage Order No. 2, shall remain in effect for the purposes set forth therein.

(3) If a court of law rules that the three-part test in paragraph (1) cannot be applied to a particular context based on grounds other than an express exception to employment status as provided under paragraph (2), then the determination of employee or independent contractor status in that context shall instead be governed by the California Supreme Court’s decision in S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 (Borello).

If you need Statewide Criminal Searches look at central state and police checks repositories for felony and misdemeanors records. Information in these repositories comes from law enforcement agencies, courts and corrections agencies throughout the state.

I am sorry to report that after a long two year journey, we were not able to summon the courage among the California Assembly members to pass SB 308.  The bill failed in today’s final vote and is now officially dead.

M. Erik Clark

SB 308 would have increased the homestead exemption substantially and done after with the requirement that the proceeds of sale be reinvested within six months.

California Assembly Bill 233 – Protecting pay checks from garnishment by private student loan lenders. Here is the status of the legislation. AB 233 passed the Assembly, but failed to gain State Senate approval. As things now stand, AB 233 has been put on hold in the Senate. It may be reconsidered again by the Senate in January 2014 without the necessity of being refiled in the Assembly. The bill is authored by Assemblyman Bob Wieckowski, of Fremont, California.

I am informed that once AB 233 reached the Senate, it ran into enormous opposition from lobbyists of the California Banker’s Association. They are the ones who killed it. Assemblyman Wieckowski is considering changes to the bill that might give it a better chance of passage. I personally discussed it with his staff. Private student loans are predominantly originated at what we used to call “vocational trade schools.” I note that such institutions have mostly renamed themselves “private universities.” I offered a suggestion that would prevent wage garnishment for private student loans that originated at schools with a high rate of loan defaults. Such a measurement may be indicative that the schools in question are diploma mills where little or no useful education has taking place. Thus, the students who incurred private loans attending such institutions should be protected from exploitation to repay loans incurred for a useless education. This would force the private lenders to partner with the students to assure that the education received translates into valuable market skills for the students who emerge from such schools. Do you agree? If so, let your state legislators know how you feel! http://ow.ly/pr9jr

-Leon Bayer