Employment: employees and independent contractors: merchandisers.

Assembly Member Flora's proposal to modify California's worker classification framework would create a specific exemption for merchandisers in the consumer-packaged goods industry from the state's ABC test for employment status. Under the proposed changes, merchandisers who provide in-store inventory and product placement services would instead be evaluated using the Borello test, joining other exempt professional services categories.

The exemption would apply to merchandisers who meet six specific conditions: voluntary registration with the hiring entity, ability to freely negotiate compensation, performance of services without direct supervision, coverage under the hiring entity's occupational accident insurance, freedom from mandatory training or equipment requirements, and permission to work with multiple businesses. These requirements aim to establish clear parameters for when merchandisers can operate as independent contractors rather than employees.

The measure maintains the existing framework where certain professional services - including graphic designers, fine artists, and content contributors - are evaluated under the more flexible Borello standard rather than the ABC test's three rigid criteria. The Labor Commissioner would continue enforcing proper worker classification under these amended provisions, which require no new state appropriations but may create compliance obligations for hiring entities regarding insurance coverage and registration processes.