California Labor Code

§ 2776

LAB § 2776 Effective Sep 4, 2020Div. 3 · Ch. 2 · Art. 1.5

Statute text

Section 2775 and the holding in Dynamex do not apply to a bona fide business-to-business contracting relationship, as defined below, under the following conditions:

(a)If an individual acting as a sole proprietor, or a business entity formed as a partnership, limited liability company, limited liability partnership, or corporation (“business service provider”) contracts to provide services to another such business or to a public agency or quasi-public corporation (“contracting business”), the determination of employee or independent contractor status of the business services provider shall be governed by Borello, if the contracting business demonstrates that all of the following criteria are satisfied:

(1)The business service provider is free from the control and direction of the contracting business entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

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Legislative history

Added by Stats. 2020, Ch. 38, Sec. 2. (AB 2257) Effective September 4, 2020.