Section 606.5 Of Article 1. Employment From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 3. >> Article 1.
606.5
. (a) Whether an individual or entity is the employer of
specific employees shall be determined under common law rules
applicable in determining the employer-employee relationship, except
as provided in subdivisions (b) and (c).
(b) As used in this section, a "temporary services employer" and a
"leasing employer" is an employing unit that contracts with clients
or customers to supply workers to perform services for the client or
customer and performs all of the following functions:
(1) Negotiates with clients or customers for such matters as time,
place, type of work, working conditions, quality, and price of the
services.
(2) Determines assignments or reassignments of workers, even
though workers retain the right to refuse specific assignments.
(3) Retains the authority to assign or reassign a worker to other
clients or customers when a worker is determined unacceptable by a
specific client or customer.
(4) Assigns or reassigns the worker to perform services for a
client or customer.
(5) Sets the rate of pay of the worker, whether or not through
negotiation.
(6) Pays the worker from its own account or accounts.
(7) Retains the right to hire and terminate workers.
(c) If an individual or entity contracts to supply an employee to
perform services for a customer or client, and is a leasing employer
or a temporary services employer, the individual or entity is the
employer of the employee who performs the services. If an individual
or entity contracts to supply an employee to perform services for a
client or customer and is not a leasing employer or a temporary
services employer, the client or customer is the employer of the
employee who performs the services. An individual or entity that
contracts to supply an employee to perform services for a customer or
client and pays wages to the employee for the services, but is not a
leasing employer or a temporary services employer, pays the wages as
the agent of the employer.
(d) In circumstances which are in essence the loan of an employee
from one employer to another employer wherein direction and control
of the manner and means of performing the services changes to the
employer to whom the employee is loaned, the loaning employer shall
continue to be the employer of the employee if the loaning employer
continues to pay remuneration to the employee, whether or not
reimbursed by the other employer. If the employer to whom the
employee is loaned pays remuneration to the employee for the services
performed, that employer shall be considered the employer for the
purposes of any remuneration paid to the employee by the employer,
regardless of whether the loaning employer also pays remuneration to
the employee.