Do we qualify for the Single-Engagement Exemption under AB-2257?
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Do we qualify for the Single-Engagement Exemption under AB-2257?
Would this offer additional legal protections in defining our relationship with contractors compared to the ABC test?
I have a food and beverage agency.
Hi ****! Thanks so much; can you copy and paste that old question you had for me? I'll be able to take a look
Are you familiar with the Single-Engagement Exemption under AB-2257, and the Borello Test? It looks like we would qualify for this by nature of our business and that it would confer additional protection for us in how we define the relationship with our contractors compared to the ABC test. The single-engagement exemption under AB 2257 applies to various types of businesses and services that involve short-term, specific events. Here are some examples of businesses that might fall under this exemption: 1. Event Planners: Businesses that organize and manage events such as weddings, corporate events, or parties. 2. Entertainment Services: Companies providing entertainment for events, such as DJs, bands, or performers. 3. Catering Services: Catering companies that provide food and beverage services for a single event or a series of events in the same location. 4. Decorators and Florists: Businesses offering decoration and floral arrangements for events. 5. Photographers and Videographers: Professionals hired to capture moments at events like weddings, parties, or corporate gatherings. 6. Temporary Staffing Agencies: Agencies providing temporary staff for events, such as servers, bartenders, or event coordinators. 7. Equipment Rental Companies: Businesses renting out equipment like audiovisual gear, lighting, or furniture for events. Here are the key factors considered in the Borello test: 1. Distinct Occupation or Business: Whether the worker holds themselves out as being engaged in an occupation or business distinct from that of the employer. 2. Integral Part of Business: Whether the work performed is a regular or integral part of the employer's business. 3. Supplies and Tools: Whether the employer or the worker supplies the instrumentalities, tools, and the place for the worker doing the work. 4. Investment: Whether the worker has invested in the business, such as in equipment or materials required for their task. 5. Special Skill: Whether the service provided requires a special skill. 6. Direction and Supervision: Whether the work is usually done under the direction of the employer or by a specialist without supervision. 7. Opportunity for Profit or Loss: The worker's opportunity for profit or loss depending on their managerial skill. 8. Length of Time: The length of time for which the services are to be performed. 9. Permanence: The degree of permanence of the working relationship. 10. Method of Payment: Whether the worker is paid by time or by the job. * By Time (Hourly or Salary): If the worker is paid an hourly rate or a fixed salary, this suggests a more traditional employer-employee relationship. The employer exercises control over the worker's schedule and the tasks they perform during those hours. * By Job (Per Task or Project): If the worker is paid by the job or project, this indicates an independent contractor relationship. The worker has more control over how the work is completed and is typically responsible for managing their own schedule, tools, and resources. 12. Belief of Relationship: Whether the worker and the potential employer believe they are creating an employer-employee relationship Does this all check out? Also, If we want to book corporate events outside of our website, can we make a copy of the TOS and add a signature line then have the client sign, and say that it supersedes the website TOS?
thank you Dolan!
You got it, friend! Ok so here is the deal: 1. Because the nature of what people do to earn money is virtually unlimited, the law doesn't specify with such clarity whether the business you guys run is specifically exempt. This is not uncommon. 2. With that said, we have to read carefully what the intent of the legislature was in this case. If we look at "single engagement" int his case, generally it's going to apply when both parties have their own separate business locations, there's a written contract specifying payment, the worker uses their own tools and equipment, and the worker is free from the hiring entity's control; 3. Based on what was drafted, all of these elements are met. Keep in mind it's not a bright-line rule and every situation will vary; however, on balance, it would be obvious to any judge in California that these people are independently contracted, just like we are on contractscounsel.com! CC provides some tools to us (e.g. this chat system), but it's just to facilitate the true nature of our job. So in my opinion, you guys would be fine even with this bill in place. 4. The other things you mentioned also suggest they are independent because your business (the platform) is distinct from the business of bartending (even if you guys do some yourself), you don't invest in them as workers, they need special skills to do that job unlike a receptionist at an office building, the engagements are short, and they are just paid by the job. Ultimately, it would be very difficult to suggest your company is an employer. To your last question, yes, you can make a copy of the TOS and add a signature lien to have the client sign. I can create an addendum template for you. (it'll be $*** for that) to help. Just let me know!
Thanks, Dolan! Hope you have a restful weekend - cheers.
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