Section 2750.5 Of Article 1. The Contract Of Employment From California Labor Code >> Division 3. >> Chapter 2. >> Article 1.
2750.5
. There is a rebuttable presumption affecting the burden of
proof that a worker 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) That the individual has the right to control and discretion as
to the manner 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) That the individual is customarily engaged in an independently
established business.
(c) 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 addition to the factors contained in subdivisions (a), (b), and
(c), any 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 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.