> Code Search ... Code Search Text Search. (ii) For work performed after January 1, 2020, the subcontractor is registered with the Department of Industrial Relations as a public works contractor pursuant to Section 1725.5, regardless of whether the subcontract involves public work. Exempt employees are designated as such because they are “exempt” from certain wage and hour requirements due to their duties and pay. The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of the State of California. Under California labor laws, an “employee” is generally defined as any individual who is under the direction and control of an employer either through appointment or by oral or written contract. Martinez sued Munoz, and Apio, Inc. and Combs Distribution Co., two produce merchants (collectively, the “merchants”) through which Munoz sold its strawberries, for, among other things, unpaid minimum … (L) The business service provider is not performing the type of work for which a license from the Contractor’s State License Board is required, pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code. (AB 170) Effective January 1, 2020.). If a worker is classified as an employee, the employer bears the responsibility of paying social security and payroll taxes, unemployment insurance taxes and state employment taxes, providing worker’s compensation insurance, and of course, complying with the endless labyrinth of state and federal statutes governing the wages, hours, and working conditions of employees. (d) Subdivision (a) and the holding in Dynamex do not apply to the following, which are subject to the Business and Professions Code: (1) A real estate licensee licensed by the State of California pursuant to Division 4 (commencing with Section 10000) of the Business and Professions Code, for whom the determination of employee or independent contractor status shall be governed by subdivision (b) of Section 10032 of the Business and Professions Code. (A) An “individual” includes an individual providing services through a sole proprietorship or other business entity. (c) (1) Subdivision (a) and the holding in Dynamex do not apply to a contract for “professional services” as defined below, and instead the determination of whether the individual is an employee or independent contractor shall be governed by Borello if the hiring entity demonstrates that all of the following factors are satisfied: (A) The individual maintains a business location, which may include the individual’s residence, that is separate from the hiring entity. California Labor Code section 2922 provides: “An employment, having no specified term, may be terminated at the will of either party on notice to the other.” The at-will doctrine means that the employment relationship can be terminated by either party at any time, with or without cause, and with or without advanced notice. (iii) The subcontractor utilizes its own employees to perform the construction trucking services, unless the subcontractor is a sole proprietor who operates their own truck to perform the entire subcontract and holds a valid motor carrier permit issued by the Department of Motor Vehicles. California Abandons 30-Year-Old Test For Determining Independent-Contractor Status, Broadens Definition Of “Employee” By Tony Oncidi and Travis Hall on May 1, 2018 Posted in California Labor & Employment Law, Employment Law Notes, Wage and Hour Items of content produced on a recurring basis related to a general topic shall be considered separate submissions for purposes of calculating the 35 times per year. (V) If the individual is performing services at the location of the hiring entity, then the individual issues a Form 1099 to the salon or business owner from which they rent their business space. In the U.S., the firm’s clients include more than half of the Fortune 100. (3) The determination of whether an individual working for a business service provider is an employee or independent contractor of the business service provider is governed by paragraph (1) of subdivision (a). (H) The service provider sets its own hours and terms of work and is free to accept or reject clients and contracts. AB-5 includes a laundry list of occupational and industry exemptions, including those for doctors, dentists, lawyers, engineers, accountants, architects, realtors, travel agents, graphic designers, human resources administrators, grant writers, marketers, fine artists, investment advisors and broker-dealers. (I) The service provider sets its own rates for services performed, without deduction by the referral agency. (3) An individual who holds an active license from the State of California and is practicing one of the following recognized professions: lawyer, architect, engineer, private investigator, or accountant. For more information, please visit www.sheppardmullin.com. The statutorily imposed duties of a responsible broker under Section 10015.1 of the Business and Professions Code are not factors to be considered under the Borello test. The worker must be customarily engaged in an independent established trade, occupation, or business of the same nature as the work performed. The determination whether such an individual is an employee of a referral agency is governed by subdivision (a). (C) The individual has the ability to set or negotiate their own rates for the services performed. AB 1867 (codified as Cal. Labor Code §§ 248, 248.1) requires employers to provide their California employees with up to 80 hours of COVID-19-related supplemental paid sick leave (CSPSL). (3) If a court of law rules that the three-part test in paragraph (1) cannot be applied to a particular context based on grounds other than an express exception to employment status as provided under paragraph (2), then the determination of employee or independent contractor status in that context shall instead be governed by the California Supreme Court’s decision in S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 (Borello). California law presumes that all employees are non-exempt employees, meaning that they are not exempt from the Labor Code requirements, such as overtime pay, meal and rest breaks, and minimum wage. (B) For work performed after January 1, 2020, any business entity that provides construction trucking services to a licensed contractor utilizing more than one truck shall be deemed the employer for all drivers of those trucks. (2) A physician and surgeon, dentist, podiatrist, psychologist, or veterinarian licensed by the State of California pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code, performing professional or medical services provided to or by a health care entity, including an entity organized as a sole proprietorship, partnership, or professional corporation as defined in Section 13401 of the Corporations Code. This subparagraph does not apply if the service provider accepts a client or contract and then fails to fulfill any of its contractual obligations. ... construction site, or other area, workplace or environment where work is performed by an employee of an employer and includes any inspection conducted pursuant to a complaint, any reinspection, or follow-up inspection. (III)  Has their own book of business and schedules their own appointments. (i) “Newspaper” means a newspaper of general circulation, as defined in Section 6000 of the Government Code, and any other publication circulated to the community in general as an extension of or substitute for that newspaper’s own publication, whether that publication be designated a “shoppers’ guide,” as a zoned edition, or otherwise. Read more about which workers are exempt from California minimum wage and overtime requirements. Labor Code 515 LC — Exemptions [from wage/hour laws]. Up-to-date Information on Labor & Employment Law. According to the California Labor Code, “wages” include “all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission pay basis, or other method of calculation.” 3 2. (D) This paragraph shall become inoperative on January 1, 2023, unless extended by the Legislature. (3) An individual who holds an active license from the State of California and is practicing one of the following recognized professions: lawyer, architect, engineer, private investigator, or accountant. These occupations will remain subject to the traditional common law definition of employment. Under the ABC test, anyone that performs a service for another is assumed to be an employee. (g) Subdivision (a) and the holding in Dynamex do not apply to the relationship between a referral agency and a service provider, as defined below, under the following conditions: (1) If a business entity formed as a sole proprietor, partnership, limited liability company, limited liability partnership, or corporation (“service provider”) provides services to clients through a referral agency, the determination whether the service provider is an employee of the referral agency shall be governed by Borello, if the referral agency demonstrates that all of the following criteria are satisfied: (A) The service provider is free from the control and direction of the referral agency in connection with the performance of the work for the client, both as a matter of contract and in fact. The worker must be free from the control and direction of the hirer in connection with the performance of the work. For purposes of this clause a “submission” is one or more items or forms of content produced by a still photographer or photojournalist that: (I) pertains to a specific event or specific subject; (II) is provided for in a contract that defines the scope of the work; and (III) is accepted by and licensed to the publication or stock photography company and published or posted. (4) A securities broker-dealer or investment adviser or their agents and representatives that are registered with the Securities and Exchange Commission or the Financial Industry Regulatory Authority or licensed by the State of California under Chapter 2 (commencing with Section 25210) or Chapter 3 (commencing with Section 25230) of Division 1 of Part 3 of Title 4 of the Corporations Code. (b) “ Employer ” means any person, as defined by Section 18, who directly or indirectly owns and operates a covered establishment. 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california labor code definition of employee

Nothing in this section shall prevent a photographer or artist from displaying their work product for sale. On January 1, 2017, California Labor Code Section 925 went into effect. “Employee” means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes: (a) Aliens and minors. If you do not wish to accept cookies from our website, or would like to stop cookies being stored on your device in the future, you can find out more and adjust your preferences here. By scrolling this page, clicking a link or continuing to browse our website, you consent to our use of cookies as described in our Cookie and Advertising Policy. (ii) “Commercial fisherman” means a person who has a valid, unrevoked commercial fishing license issued pursuant to Article 3 (commencing with Section 7850) of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code. California Labor Code Section 3351 defines who is an employee and, therefore, who can be covered under a workers' compensation policy. Understanding California's Temporary Employee Laws. An individual employee providing their own truck for use by an employer trucking company shall be reimbursed by the trucking company for the reasonable expense incurred for the use of the employee owned truck. (iv) The subcontractor negotiates and contracts with, and is compensated directly by, the licensed contractor. (B) This paragraph shall become inoperative on January 1, 2021, unless extended by the Legislature. (8) (A) Paragraph (2) shall not apply to a subcontractor providing construction trucking services for which a contractor’s license is not required by Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, provided that all of the following criteria are satisfied: (i) The subcontractor is a business entity formed as a sole proprietorship, partnership, limited liability company, limited liability partnership, or corporation. (6) The subcontractor assumes financial responsibility for errors or omissions in labor or services as evidenced by insurance, legally authorized indemnity obligations, performance bonds, or warranties relating to the labor or services being provided. (Amended by Stats. In addition to adding Section 2750.3 to the Labor Code, AB 5 also amends Section 3351 of the Labor Code, the workers' compensation definition of "employee." (5) The subcontractor has the authority to hire and to fire other persons to provide or to assist in providing the services. (G) The service provider maintains a clientele without any restrictions from the referral agency and the service provider is free to seek work elsewhere, including through a competing agency. (IV)  Maintains their own business license for the services offered to clients. 2851. (C) If the work for the client requires the service provider to hold a state contractor’s license pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, the service provider has the required contractor’s license. Prong B of the ABC test is particularly troublesome for any business that uses independent contractors to deliver or provide their core product or service, such as those in the so-called “gig economy.”  Prong B is essentially a direct challenge to their fundamental business model. That said, the courts will ultimately decide what kind of work is considered “outside the usual course of business,” and some companies (represented by experienced counsel) may be able to persuade judges to draw these lines favorably. The California Department of Labor Standards (DLSE) considers the following standards to determine if on call time is compensable: (1) geographical restrictions on the employees’ movements; (2) required response time; (3) the nature of the employment; and (4) the extent the employer’s policy impacts personal activities during on call time. Miguel Martinez and others (collectively, the “workers”) worked for Munoz as seasonal agricultural workers for the 2000 harvest. Labor Code § 226. This report shall include, but not be limited to, reporting the number of commercial fishermen who apply for unemployment insurance benefits, the number of commercial fishermen who have their claims disputed, the number of commercial fishermen who have their claims denied, and the number of commercial fishermen who receive unemployment insurance benefits. (B) If work is performed more than six months after the effective date of this section, the individual has a business license, in addition to any required professional licenses or permits for the individual to practice in their profession. (E) The business service provider maintains a business location that is separate from the business or work location of the contracting business. (b) Subdivision (a) and the holding in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 (Dynamex), do not apply to the following occupations as defined in the paragraphs below, and instead, the determination of employee or independent contractor status for individuals in those occupations shall be governed by Borello. In order to rebut that assumption, the hiring individual or entity must prove that the worker is an independent contractor by meeting each of the three requirements of the ABC test: Practically speaking, the question of whether a worker is an employee or independent contractor is very significant. along with a whole host of derivative claims. california labor code table of contents general provisions ..... 1-29.5 division 1. department of industrial relations (j) In addition to any other remedies available, an action for injunctive relief to prevent the continued misclassification of employees as independent contractors may be prosecuted against the putative employer in a court of competent jurisdiction by the Attorney General or by a city attorney of a city having a population in excess of 750,000, or by a city attorney in a city and county or, with the consent of the district attorney, by a city prosecutor in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association. Labor Code, § 2750 [“The contract of employment is a contract by which one, who is called the employer, engages another, who is called the employee, to do something for the benefit of the employer or a third person.”].↥ (F) The individual customarily and regularly exercises discretion and independent judgment in the performance of the services. (iii) Travel agent services provided by either of the following: (I) a person regulated by the Attorney General under Article 2.6 (commencing with Section 17550) of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code, or (II) an individual who is a seller of travel within the meaning of subdivision (a) of Section 17550.1 of the Business and Professions Code and who is exempt from the registration under subdivision (g) of Section 17550.20 of the Business and Professions Code. For purposes of this clause, a “submission” is one or more items or forms of content by a freelance journalist that: (I) pertains to a specific event or topic; (II) is provided for in a contract that defines the scope of the work; (III) is accepted by the publication or company and published or posted for sale. Sheppard Mullin is a full-service Global 100 firm with more than 900 attorneys in 15 offices located in the United States, Europe and Asia. (1) A person or organization who is licensed by the Department of Insurance pursuant to Chapter 5 (commencing with Section 1621), Chapter 6 (commencing with Section 1760), or Chapter 8 (commencing with Section 1831) of Part 2 of Division 1 of the Insurance Code. (II)  Sets their own hours of work and has sole discretion to decide the number of clients and which clients for whom they will provide services. Sheppard Mullin’s Labor & Employment Law Blog is designed to provide employers with breaking news, insights, and legal analysis on virtually every labor and employment law issue facing employers. (2) A repossession agency licensed pursuant to Section 7500.2 of the Business and Professions Code, for whom the determination of employee or independent contractor status shall be governed by Section 7500.2 of the Business and Professions Code, if the repossession agency is free from the control and direction of the hiring person or entity in connection with the performance of the work, both under the contract for the performance of the work and in fact. AB-5 expands the application of the ABC test to the entire California Labor Code and will take effect on January 1, 2020. This code states that inventions of an employee are not assigned to the employer if they are wholly developed on the employee's own time and if they are done so without the uses of employer's equipment, supplies, … (D) The service provider delivers services to the client under service provider’s name, rather than under the name of the referral agency. Labor Code Section 1198.5 Inspections must be allowed at reasonable times and intervals, but not later than 30 calendar days … (i) “American vessel” has the same meaning as defined in Section 125.5 of the Unemployment Insurance Code. (D) Outside of project completion dates and reasonable business hours, the individual has the ability to set the individual’s own hours. (C) “Referral agency” is a business that connects clients with service providers that provide graphic design, photography, tutoring, event planning, minor home repair, moving, home cleaning, errands, furniture assembly, animal services, dog walking, dog grooming, web design, picture hanging, pool cleaning, or yard cleanup. (D) If the work is performed in a jurisdiction that requires the business service provider to have a business license or business tax registration, the business service provider has the required business license or business tax registration. Employers must notify any covered, terminated employees of their … (VI) This subdivision shall become inoperative, with respect to licensed manicurists, on January 1, 2022. California Labor Code Section 2870 Definition. (E) Nothing in this paragraph prohibits an individual who owns their truck from working as an employee of a trucking company and utilizing that truck in the scope of that employment. 2019, Ch. (7) A newspaper distributor working under contract with a newspaper publisher, as defined in subparagraph (A), and a newspaper carrier working under contract either with a newspaper publisher or newspaper distributor. (C) For purposes of this paragraph, “construction trucking services” mean hauling and trucking services provided in the construction industry pursuant to a contract with a licensed contractor utilizing vehicles that require a commercial driver’s license to operate or have a gross vehicle weight rating of 26,001 or more pounds. (E) The service provider provides its own tools and supplies to perform the services. (ix) Services provided by a still photographer or photojournalist who do not license content submissions to the putative employer more than 35 times per year. Please contact your Sheppard Mullin attorney contact for additional information. This alert is provided for information purposes only and does not constitute legal advice and is not intended to form an attorney client relationship. The worker must perform work outside the “usual course” of the hirer’s business. (F) The business service provider is customarily engaged in an independently established business of the same nature as that involved in the work performed. (2) For purposes of this subdivision, the following definitions apply: (A) “Animal services” means services related to daytime and nighttime pet care including pet boarding under Section 122380 of the Health and Safety Code. DEPARTMENT OF INDUSTRIAL RELATIONS ... WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] DIVISION 4.5. (viii) Payment processing agent through an independent sales organization. Nothing in this subdivision shall apply to the employment settings currently or potentially governed by collective bargaining agreements for the licensees identified in this paragraph. At-will employment means that the employee is free to leave their jobs at any time and employers are likewise free to fire the employee at any time for any lawful reason⁠—⁠or even no reason at all.⁠ 1 (3) This subdivision does not apply to an individual worker, as opposed to a business entity, who performs services for a client through a referral agency. This new provision limits an employer’s ability to require employees to enter agreements that include out-of-state choice of law and/or forum selection clauses. (E) “Service provider” means a person or business who agrees to the referral agency’s contract and uses the referral agency to connect with clients. California Labor Code Section 2870 Definition. 415, Sec. (2) Notwithstanding paragraph (1), any exceptions to the terms “employee,” “employer,” “employ,” or “independent contractor,” and any extensions of employer status or liability, that are expressly made by a provision of this code, the Unemployment Insurance Code, or in an applicable order of the Industrial Welfare Commission, including, but not limited to, the definition of “employee” in subdivision 2(E) of Wage Order No. (C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. (h) Subdivision (a) and the holding in Dynamex do not apply to the relationship between a motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code and an individual performing services pursuant to a contract between the motor club and a third party to provide motor club services utilizing the employees and vehicles of the third party and, instead, the determination whether such an individual is an employee of the motor club shall be governed by Borello, if the motor club demonstrates that the third party is a separate and independent business from the motor club. (b) All elected and appointed paid public officers. (7) The subcontractor is customarily engaged in an independently established business of the same nature as that involved in the work performed. Section 226 requires California employers to furnish employees with itemized wage statements that show nine (9) specific categories of information, such as all hourly rates, hours worked, gross wages earned, etc. The employer must provide these wage statements at the time employees are paid or semi-monthly. California Law >> Code Search ... Code Search Text Search. (ii) For work performed after January 1, 2020, the subcontractor is registered with the Department of Industrial Relations as a public works contractor pursuant to Section 1725.5, regardless of whether the subcontract involves public work. Exempt employees are designated as such because they are “exempt” from certain wage and hour requirements due to their duties and pay. The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of the State of California. Under California labor laws, an “employee” is generally defined as any individual who is under the direction and control of an employer either through appointment or by oral or written contract. Martinez sued Munoz, and Apio, Inc. and Combs Distribution Co., two produce merchants (collectively, the “merchants”) through which Munoz sold its strawberries, for, among other things, unpaid minimum … (L) The business service provider is not performing the type of work for which a license from the Contractor’s State License Board is required, pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code. (AB 170) Effective January 1, 2020.). If a worker is classified as an employee, the employer bears the responsibility of paying social security and payroll taxes, unemployment insurance taxes and state employment taxes, providing worker’s compensation insurance, and of course, complying with the endless labyrinth of state and federal statutes governing the wages, hours, and working conditions of employees. (d) Subdivision (a) and the holding in Dynamex do not apply to the following, which are subject to the Business and Professions Code: (1) A real estate licensee licensed by the State of California pursuant to Division 4 (commencing with Section 10000) of the Business and Professions Code, for whom the determination of employee or independent contractor status shall be governed by subdivision (b) of Section 10032 of the Business and Professions Code. (A) An “individual” includes an individual providing services through a sole proprietorship or other business entity. (c) (1) Subdivision (a) and the holding in Dynamex do not apply to a contract for “professional services” as defined below, and instead the determination of whether the individual is an employee or independent contractor shall be governed by Borello if the hiring entity demonstrates that all of the following factors are satisfied: (A) The individual maintains a business location, which may include the individual’s residence, that is separate from the hiring entity. California Labor Code section 2922 provides: “An employment, having no specified term, may be terminated at the will of either party on notice to the other.” The at-will doctrine means that the employment relationship can be terminated by either party at any time, with or without cause, and with or without advanced notice. (iii) The subcontractor utilizes its own employees to perform the construction trucking services, unless the subcontractor is a sole proprietor who operates their own truck to perform the entire subcontract and holds a valid motor carrier permit issued by the Department of Motor Vehicles. California Abandons 30-Year-Old Test For Determining Independent-Contractor Status, Broadens Definition Of “Employee” By Tony Oncidi and Travis Hall on May 1, 2018 Posted in California Labor & Employment Law, Employment Law Notes, Wage and Hour Items of content produced on a recurring basis related to a general topic shall be considered separate submissions for purposes of calculating the 35 times per year. (V) If the individual is performing services at the location of the hiring entity, then the individual issues a Form 1099 to the salon or business owner from which they rent their business space. In the U.S., the firm’s clients include more than half of the Fortune 100. (3) The determination of whether an individual working for a business service provider is an employee or independent contractor of the business service provider is governed by paragraph (1) of subdivision (a). (H) The service provider sets its own hours and terms of work and is free to accept or reject clients and contracts. AB-5 includes a laundry list of occupational and industry exemptions, including those for doctors, dentists, lawyers, engineers, accountants, architects, realtors, travel agents, graphic designers, human resources administrators, grant writers, marketers, fine artists, investment advisors and broker-dealers. (I) The service provider sets its own rates for services performed, without deduction by the referral agency. (3) An individual who holds an active license from the State of California and is practicing one of the following recognized professions: lawyer, architect, engineer, private investigator, or accountant. For more information, please visit www.sheppardmullin.com. The statutorily imposed duties of a responsible broker under Section 10015.1 of the Business and Professions Code are not factors to be considered under the Borello test. The worker must be customarily engaged in an independent established trade, occupation, or business of the same nature as the work performed. The determination whether such an individual is an employee of a referral agency is governed by subdivision (a). (C) The individual has the ability to set or negotiate their own rates for the services performed. AB 1867 (codified as Cal. Labor Code §§ 248, 248.1) requires employers to provide their California employees with up to 80 hours of COVID-19-related supplemental paid sick leave (CSPSL). (3) If a court of law rules that the three-part test in paragraph (1) cannot be applied to a particular context based on grounds other than an express exception to employment status as provided under paragraph (2), then the determination of employee or independent contractor status in that context shall instead be governed by the California Supreme Court’s decision in S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 (Borello). California law presumes that all employees are non-exempt employees, meaning that they are not exempt from the Labor Code requirements, such as overtime pay, meal and rest breaks, and minimum wage. (B) For work performed after January 1, 2020, any business entity that provides construction trucking services to a licensed contractor utilizing more than one truck shall be deemed the employer for all drivers of those trucks. (2) A physician and surgeon, dentist, podiatrist, psychologist, or veterinarian licensed by the State of California pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code, performing professional or medical services provided to or by a health care entity, including an entity organized as a sole proprietorship, partnership, or professional corporation as defined in Section 13401 of the Corporations Code. This subparagraph does not apply if the service provider accepts a client or contract and then fails to fulfill any of its contractual obligations. ... construction site, or other area, workplace or environment where work is performed by an employee of an employer and includes any inspection conducted pursuant to a complaint, any reinspection, or follow-up inspection. (III)  Has their own book of business and schedules their own appointments. (i) “Newspaper” means a newspaper of general circulation, as defined in Section 6000 of the Government Code, and any other publication circulated to the community in general as an extension of or substitute for that newspaper’s own publication, whether that publication be designated a “shoppers’ guide,” as a zoned edition, or otherwise. Read more about which workers are exempt from California minimum wage and overtime requirements. Labor Code 515 LC — Exemptions [from wage/hour laws]. Up-to-date Information on Labor & Employment Law. According to the California Labor Code, “wages” include “all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission pay basis, or other method of calculation.” 3 2. (D) This paragraph shall become inoperative on January 1, 2023, unless extended by the Legislature. (3) An individual who holds an active license from the State of California and is practicing one of the following recognized professions: lawyer, architect, engineer, private investigator, or accountant. These occupations will remain subject to the traditional common law definition of employment. Under the ABC test, anyone that performs a service for another is assumed to be an employee. (g) Subdivision (a) and the holding in Dynamex do not apply to the relationship between a referral agency and a service provider, as defined below, under the following conditions: (1) If a business entity formed as a sole proprietor, partnership, limited liability company, limited liability partnership, or corporation (“service provider”) provides services to clients through a referral agency, the determination whether the service provider is an employee of the referral agency shall be governed by Borello, if the referral agency demonstrates that all of the following criteria are satisfied: (A) The service provider is free from the control and direction of the referral agency in connection with the performance of the work for the client, both as a matter of contract and in fact. The worker must be free from the control and direction of the hirer in connection with the performance of the work. For purposes of this clause a “submission” is one or more items or forms of content produced by a still photographer or photojournalist that: (I) pertains to a specific event or specific subject; (II) is provided for in a contract that defines the scope of the work; and (III) is accepted by and licensed to the publication or stock photography company and published or posted. (4) A securities broker-dealer or investment adviser or their agents and representatives that are registered with the Securities and Exchange Commission or the Financial Industry Regulatory Authority or licensed by the State of California under Chapter 2 (commencing with Section 25210) or Chapter 3 (commencing with Section 25230) of Division 1 of Part 3 of Title 4 of the Corporations Code. (b) “ Employer ” means any person, as defined by Section 18, who directly or indirectly owns and operates a covered establishment. 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