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PRESS RELEASE from CCTO & National ASTA |
| We now have the text of the amendment: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5. |
| (iii) Travel agent services provided by either of the following: (I) a person regulated by the Attorney General under Article 2.6 (commencing with Section 17550) of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code, or (II) an individual who is a seller of travel within the meaning of subdivision (a) of Section 17550.1 of the Business and Professions Code and who is exempt from the registration under subdivision (g) of Section 17550.20 of the Business and Professions Code. |
| This subdivision is in the "professional services" provision of the bill, which begins on Page 9, Line 31, and sets forth the following criteria: |
| (c) (1) Subdivision (a) and the holding in Dynamex do not apply to a contract for “professional services” as defined below, and instead the determination of whether the individual is an employee or independent contractor shall be governed by Borello if the hiring entity demonstrates that all of the following factors are satisfied: (A) The individual maintains a business location, which may include the individual’s residence, that is separate from the hiring entity. (B) If work is performed more than six months after the effective date of this section, the individual has a business license, in addition to any required professional licenses or permits for the individual to practice in their profession. (C) The individual has the ability to set or negotiate their own rates for the services performed. (D) Outside of project completion dates and reasonable business hours, the individual has the ability to set the individual’s own hours. (E) The individual is customarily engaged in the same type of work performed under contract with another hiring entity or holds themselves out to other potential customers as available to perform the same type of work. (F) The individual customarily and regularly exercises discretion and independent judgment in the performance of the services. |
| This exemption is a huge relief and CCTO is proud of the work done by our member organizations and ASTA. Please keep in mind that though we’ve obtained an exemption, the bill still has to pass the full Senate, be sent to the Assembly for concurrence and signed by the governor. I’m not available by phone until Tuesday, but I’ll be happy to answer any emailed questions this weekend. |
Best regards, |