GCVCC Legislative Update 2020

GCVCC Supports AB 3281

Current law exempts specified occupations and business relationships from the application of the “ABC” test, including a business-to-business contracting relationship, that meets specified requirements, including that a business is a “contracting business” if it demonstrates that it meets specified criteria. Current law, instead, provides that these exempt relationships are governed by the multi-factor test previously established in the case of S. G. Borello & Sons, Inc. v. Department of

Industrial Relations (1989) 48 Cal.3d 341. This bill would also include as a “contracting business” for purposes of a business-to-business contracting relationship, or business that subject to specified tax provisions relating to sale proprietorship’s on limited partnerships.