California Labor Code

§ 2777

LAB § 2777 Effective Sep 4, 2020Div. 3 · Ch. 2 · Art. 1.5

Statute text

Section 2775 and the holding in Dynamex do not apply to the relationship between a referral agency and a service provider, 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 (“service provider”) provides services to clients through a referral agency, the determination of whether the service provider is an employee or independent contractor of the referral agency shall be governed by Borello, if the referral agency demonstrates that all of the following criteria are satisfied:

(1)The service provider is free from the control and direction of the referral agency in connection with the performance of the work for the client, both as a matter of contract and in fact.

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Legislative history

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