Bill Text: CA SB238 | 2019-2020 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Worker status: factors for determination of employee status.

Spectrum: Partisan Bill (Republican 10-0)

Status: (Failed) 2020-02-04 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB238 Detail]

Download: California-2019-SB238-Introduced.html

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CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 238

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Introduced by Senator Grove

February 11, 2019

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

LEGISLATIVE COUNSEL'S DIGEST

SB 238, as introduced, Grove. 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.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

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 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.