California Labor Code

§ 2778

LAB § 2778 Effective Jan 1, 2026Div. 3 · Ch. 2 · Art. 1.5

Statute text

(a)Section 2775 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:

(1)The individual maintains a business location, which may include the individual’s residence, that is separate from the hiring entity. Nothing in this paragraph prohibits an individual from choosing to perform services at the location of the hiring entity.

(2)If work is performed more than six months after the effective date of this section and the work is performed in a jurisdiction that requires the individual to have a business license or business tax registration, the individual has the required business license or business tax registration in order to provide the services under the contract, in addition to any required professional licenses or permits for the individual to practice in their profession.

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Legislative history

Amended by Stats. 2025, Ch. 305, Sec. 1. (AB 1514) Effective January 1, 2026.