AB 1727, as introduced, Gonzalez. Employment relations.
Existing law provides a rebuttable presumption affecting the burden of proof that a worker performing services for which a license is required under the Contractors’ State License Law, or performing services for a person who is required to obtain that license, is an employee, rather than an independent contractor, and specifies factors to establish proof of independent contractor status.
This bill would make nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 2750.5 of the Labor Code is amended to
2read:
begin insert(a)end insertbegin insert end insert There is a rebuttable presumption affecting the
4burden of proof thatbegin delete a workerend deletebegin insert an individualend insert performing services
5for which a license is required pursuant to Chapter 9 (commencing
6with Section 7000) of Division 3 of the Business and Professions
7Code, or who is performing such services for a person who is
8required to obtain such a license is an employee rather than an
P2 1independent
contractor. Proof of independent contractor status
2includes satisfactory proof of these factors:
3(a)
end delete
4begin insert(1)end insert That the individual has the right to controlbegin insert,end insert and discretion
5as to the mannerbegin delete ofend deletebegin insert of,end insert performance of the contract for services in
6that the result of the work and not the means by which it is
7accomplished is the primary factor bargained for.
8(b)
end delete
9begin insert(2)end insert That the individual is customarily engaged in an
10independently established business.
11(c)
end delete
12begin insert(3)end insert That the individual’s independent contractor status is bona
13fide and not a subterfuge to avoid employee status. A bona fide
14independent contractor status is further evidenced by the presence
15of cumulative factors such as substantial investment other than
16personal services in the business, holding out to be in business for
17oneself, bargaining for a contract to complete a specific project
18for compensation by
project rather than by time, control over the
19time and place the work is performed, supplying the tools or
20instrumentalities used in the work other than tools and
21instrumentalities normally and customarily provided by employees,
22hiring employees, performing work that is not ordinarily in the
23course of the principal’s work, performing work that requires a
24particular skill, holding a license pursuant to the Business and
25Professions Code, the intent by the parties that the work
26relationship is of an independent contractor status, or that the
27relationship is not severable or terminable at will by the principal
28but gives rise to an action for breach of contract.
29 In
end delete
30begin insert(b)end insertbegin insert end insertbegin insertInend insert addition to the factors contained inbegin delete subdivisions (a), (b), begin insert paragraphs (1), (2), and (3) of subdivision (a), aend insert
31and (c), anyend delete
32 person performing any function or activity for which a license is
33required pursuant to Chapter 9 (commencing with Section 7000)
34of Division 3 of the Business and Professions Code shall hold a
35valid contractors’ license as a condition of having independent
36contractor status.
37 For
end delete
38begin insert(c)end insertbegin insert end insertbegin insertForend insert purposes of workers’ compensation law, this
39presumption is a supplement to the existing statutory definitions
40of employee and independent contractor, and is not intended to
P3 1lessen the coverage of employees under Division 4 and Division
25.
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