AB 816: Employment: employees and independent contractors: merchandisers.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law requires a 3-part test, commonly known as the “ABC” test, to determine if workers are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission. Under the ABC test, a person providing labor or services for remuneration is considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation, or business. Existing law charges the Labor Commissioner with the enforcement of labor laws, including worker classification

Existing law exempts certain occupations and business relationships from the application of the ABC test described above. Existing law, instead, provides that these exempt relationships are governed by the multifactor test previously adopted in the case of S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341. These exemptions include professional services provided by graphic designers, fine artists, content contributors, and various others, subject to meeting specified conditions.

This bill would create an exemption for a merchandiser contracting with a bona fide business or hiring entity to provide stand-alone in-store inventory and product placement labor or services on behalf of retailers and brands in the consumer-packaged goods industry, as specified.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. March 17, 2025Re-referred to Com. on L. & E.
4. March 13, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.
5. March 13, 2025Referred to Com. on L. & E.
6. February 20, 2025From printer. May be heard in committee March 22.
7. February 19, 2025Read first time. To print.