With respect to classification of real estate appraisers in California as independent contractors, Assembly Bill 2257 was signed by the governor on September 4, 2020 and specifically includes appraisers in a professional services exception from the ABC test enacted by AB 5. It is retroactive to January 1, 2020.
If appraisal firms utilize an appropriate written contractor agreement, the result of AB 2257 is that it returns California appraisers to the status quo of the law for determining contractor status that existed before AB 5 and the Cal. Supreme Court’s decision in Dynamex. This works well for the AMC model and for situations where appraisers work occasionally for true appraisal firms as a contractors.
You may download the slides and the sample independent contractor agreement that I prepared for discussion with California appraisal firms in my March 5, 2021 webinar here.
Here’s the full text of AB 5 with highlighting by Peter Christensen of the parts most relevant to classification of appraisers as independent contractors and also to agents and brokers who may perform BPOs and evaluations.
Here are the basic cases for understanding classification of appraisers as independent contractors under AB 5 and for understanding the risk of a reclassification lawsuit.
Peter Christensen’s articles and posts about appraisers as independent contractors both under the ABC test and in general.
California statutes relevant to application of AB 5 to appraisers in California. In particular, it’s important to understand the impact of California Labor Code section 2802.
Peter Christensen has made presentations about the classification of appraisers as independent contractors to the Appraisal Institute and REVAA, and at the Appraisal Summit and Valuation Expo.