Existing law, as established in the case of Dynamex Operations W. v. Superior Court (2018) 4 Cal.5th 903 (Dynamex), creates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits arising under wage orders issued by the Industrial Welfare Commission. Existing statutory law codifies the decision in the Dynamex case and clarifies its application. Existing law considers, for purposes of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission, a person providing labor or services for remuneration to be an employee rather than an independent contractor unless the hiring entity demonstrates that certain conditions are satisfied, as specified.

Existing law exempts specified occupations and business relationships from the application of these provisions, including the relationship between a motor club, as described, and an individual performing services pursuant to a contract between the motor club and a third party to provide motor club services utilizing the employees and vehicles of the third party. Existing law applies a different court case to the classification of such an individual.

This bill would make a nonsubstantive change to the provisions governing the relationship between the above-described motor club and individual.