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Measure SB 527
Authors Alvarado-Gil  
Coauthors: Choi   Jones   Ochoa Bogh   Seyarto   Macedo   Wallis  
Subject Worker classification: employees and independent contractors: athletic coaches.
Relating To relating to employment.
Title An act to add Section 2784.5 to the Labor Code, relating to employment.
Last Action Dt 2025-04-07
State Amended Senate
Status In Committee Process
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-04-29     April 30 set for first hearing canceled at the request of author.
2025-04-11     Set for hearing April 30.
2025-04-07     From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
2025-03-05     Referred to Com. on L., P.E. & R.
2025-02-21     From printer. May be acted upon on or after March 23.
2025-02-20     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Keywords
Tags
Versions
Amended Senate     2025-04-07
Introduced     2025-02-20
Last Version Text
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Alvarado-Gil</ns0:AuthorText>
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		<ns0:Title> An act to add Section 2784.5 to the Labor Code, relating to employment.</ns0:Title>
		<ns0:RelatingClause>employment</ns0:RelatingClause>
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			<ns0:Subject>Worker classification: employees and independent contractors: athletic coaches.</ns0:Subject>
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			<html:p>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 law requires a 3-part test, commonly known as the “ABC” test, to determine if workers are employees or independent contractors for those purposes.</html:p>
			<html:p>Existing law establishes that, 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 is considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring
			 entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation, or business. This test is known as the “ABC” test, as described above. Existing law charges the Labor Commissioner with the enforcement of labor laws, including worker classification.</html:p>
			<html:p>Existing law exempts specified occupations and business relationships from the application of the ABC test described above. Existing law, instead, provides that these exempt relationships are governed by the multifactor test previously adopted in the case of S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d.</html:p>
			<html:p>This bill would extend the above-specified exemption to a sports coach for an elementary or secondary private school or local education agency, as prescribed, and would
			 define terms, including “sports coach,” for these purposes.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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			<ns0:Num>SECTION 1.</ns0:Num>
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				Section 2784.5 is added to the 
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				, to read:
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								(a)
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								Section 2775 and the holding in Dynamex do not apply to the relationship between a sports coach and an elementary or secondary private school or local educational agency if the sports coach does not perform any additional services for the elementary or secondary private school or local educational agency beyond coaching athletic programs. Instead, the determination of employee or independent contractor status for the sports coach shall be governed by Borello.
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								(b)
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								For purposes of this section, the following terms have the following meanings:
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								(1)
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								“Local educational agency” means
						any school district, county office of education, charter school, or state special school.
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								“Sports coach” means any natural person paid by a private school or local educational agency to coach an athletic program.
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Last Version Text Digest 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 law requires a 3-part test, commonly known as the “ABC” test, to determine if workers are employees or independent contractors for those purposes. Existing law establishes that, 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 is considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation, or business. This test is known as the “ABC” test, as described above. Existing law charges the Labor Commissioner with the enforcement of labor laws, including worker classification. Existing law exempts specified occupations and business relationships from the application of the ABC test described above. Existing law, instead, provides that these exempt relationships are governed by the multifactor test previously adopted in the case of S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d. This bill would extend the above-specified exemption to a sports coach for an elementary or secondary private school or local education agency, as prescribed, and would define terms, including “sports coach,” for these purposes.