Worker classification: employees and independent contractors: licensed manicurists.

Assembly Member Ta's proposal to modify California's worker classification laws would permanently exempt licensed manicurists from the state's ABC employment test. Under current law, manicurists operate under an exemption from the ABC test that expires January 1, 2025. The bill removes this expiration date, allowing manicurists to remain classified under the more flexible Borello multi-factor test indefinitely.

The ABC test presumes workers are employees unless hiring entities can prove they are free from company control, perform work outside the company's usual business, and operate an independent business. The Borello test, which would continue to apply to manicurists under this bill, weighs multiple factors including worker autonomy, skill requirements, payment methods, and the parties' beliefs about their relationship. To qualify for the Borello classification, manicurists must set their own rates, process payments directly from clients, control their schedules and client selection, maintain business licenses, and provide tax documentation when renting salon space.

This change affects how manicurists and salon owners structure their business relationships. Under the Borello standard, manicurists meeting the specified criteria can operate as independent contractors rather than employees, determining their own hours, rates, and client base while maintaining relationships with multiple salons. The bill preserves the existing regulatory framework that has governed manicurist classification since the ABC test exemption was established.