BILL NUMBER: AB 1727	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gonzalez

                        JANUARY 28, 2016

   An act to amend Section 2750.5 of the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 2750.5 of the Labor Code is amended to read:
   2750.5.   (a)    There is a rebuttable
presumption affecting the burden of proof that  a worker
  an individual  performing services for which a
license is required pursuant to Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code, or who is
performing such services for a person who is required to obtain such
a license is an employee rather than an independent contractor. Proof
of independent contractor status includes satisfactory proof of
these factors: 
   (a) 
    (1)  That the individual has the right to control  ,
 and discretion as to the manner  of   of,
 performance of the contract for services in that the result of
the work and not the means by which it is accomplished is the
primary factor bargained for. 
   (b) 
    (2)  That the individual is customarily engaged in an
independently established business. 
   (c) 
    (3)  That the individual's independent contractor status
is bona fide and not a subterfuge to avoid employee status. A bona
fide independent contractor status is further evidenced by the
presence of cumulative factors such as substantial investment other
than personal services in the business, holding out to be in business
for oneself, bargaining for a contract to complete a specific
project for compensation by project rather than by time, control over
the time and place the work is performed, supplying the tools or
instrumentalities used in the work other than tools and
instrumentalities normally and customarily provided by employees,
hiring employees, performing work that is not ordinarily in the
course of the principal's work, performing work that requires a
particular skill, holding a license pursuant to the Business and
Professions Code, the intent by the parties that the work
relationship is of an independent contractor status, or that the
relationship is not severable or terminable at will by the principal
but gives rise to an action for breach of contract. 
    In 
    (b)     In  addition to the factors
contained in  subdivisions (a), (b), and (c), any 
 paragraphs (1), (2), and (3) of subdivision (a), a  person
performing any function or activity for which a license is required
pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of
the Business and Professions Code shall hold a valid contractors'
license as a condition of having independent contractor status.

    For 
    (c)     For  purposes of workers'
compensation law, this presumption is a supplement to the existing
statutory definitions of employee and independent contractor, and is
not intended to lessen the coverage of employees under Division 4 and
Division 5.