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 a discussion with California appraisal firms in my March 5, 2021 webinar here. The agreement is a discussion sample only. It should not be used without careful consideration of your firm’s operation and the risks and benefits of contractor classification of appraisers.