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Gov. Gavin Newsom has promptly signed into law, a bill that exempts more occupations from Assembly Bill 5, the controversial law that required most independent contractors to become employees of their clients.

Assembly Bill 5 included exemptions for many politically-connected occupations like real estate agents and doctors, but ensnared many others, drawing particular criticism from musicians, independent truck drivers, franchise business owners and freelance writers.

The amendments in AB 2257 specific to writers, photographers, videographers, editors, and illustrators make changes to AB 5 that further accommodate the needs for those individuals in the industry that operate as their own small business.

The new law establishes an exemption for services provided by a still photographer, photojournalist, videographer, or photo editor, as defined, who works under a written contract that specifies certain terms, subject to prescribed restrictions.

It also establishes an exemption for services provided to a digital content aggregator, as defined, by a still photographer, photojournalist, videographer, or photo editor.

It also establishes an exemption for services provided by a fine artist, freelance writer, translator, editor, content contributor, advisor, narrator, cartographer, producer, copy editor, illustrator, or newspaper cartoonist who works under a written contract that specifies certain terms, subject to prescribed restrictions.

The law creates additional exemptions for various professions and occupations. It exempt from the ABC test people who provide underwriting inspections and other services for the insurance industry, a manufactured housing salesperson, subject to certain obligations, people engaged by an international exchange visitor program, as specified, consulting services, animal services, and competition judges with specialized skills, as specified.

The law would also create exceptions for licensed landscape architects, specialized performers teaching master classes, registered professional foresters, real estate appraisers and home inspectors, and feedback aggregators.

The law revises the conditions pursuant to which business service providers providing services pursuant to contract to another business are exempt.

The law revises the criteria pursuant to which referral agencies and service providers providing services to clients through referral agencies are exempt and would revise applicable definitions.

The law also create an exemption for business-to-business relationships between 2 or more sole proprietors, as specified. The bill would provide that a hiring entity need only satisfy all of the conditions of one of the exemption provisions to qualify for the exemption from the ABC Test.

The new law makes conforming changes to tax law regarding the determination of the status of a worker as either an employee or an independent contractor per the criteria described above.

The new law takes effect immediately as an urgency statute.

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