Worker classification: employees and independent contractors: licensed manicurists: commercial fishers.

The California Assembly Committee on Labor and Employment proposes extending worker classification exemptions for licensed manicurists and commercial fishers while establishing new reporting requirements to monitor implementation. The legislation modifies sections of the Labor Code governing when workers can be classified as independent contractors rather than employees under the state's "ABC" test.

For licensed manicurists meeting specific business independence criteria, the bill extends their exemption from the ABC test until January 1, 2029. These criteria include setting their own rates, processing payments directly from clients, controlling their work hours and client selection, maintaining a business license, and issuing 1099 forms when renting business space. The Employment Development Department and Division of Labor Standards Enforcement must report to the Legislature by June 2026 on manicurist misclassification claims filed since 2020.

The measure also extends until January 1, 2031 the ABC test exemption for commercial fishers working on American vessels, defined as those with valid commercial fishing licenses engaged in taking fish and shellfish. These workers remain eligible for unemployment insurance benefits if they meet standard qualification criteria. Annual reports to the Legislature must detail unemployment claims data for this sector.

The amendments preserve existing requirements that exempt workers demonstrate business independence through factors like maintaining separate business locations, setting their own rates and hours, and exercising independent judgment in their work. The legislation requires regulatory agencies to track implementation through detailed reporting on worker claims, investigations, and enforcement actions.