CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 527Introduced by Senator Alvarado-GilFebruary 20, 2025 An act to add Section 2784.5 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTSB 527, as introduced, Alvarado-Gil. Worker classification: employees and independent contractors: athletic coaches.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 entitys 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 2784.5 is added to the Labor Code, to read:2784.5. (a) 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.(b) For purposes of this section, the following terms have the following meanings:(1) Local educational agency means a school district, county office of education, charter school, or state special school.(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 527Introduced by Senator Alvarado-GilFebruary 20, 2025 An act to add Section 2784.5 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTSB 527, as introduced, Alvarado-Gil. Worker classification: employees and independent contractors: athletic coaches.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 entitys 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 527
Introduced by Senator Alvarado-GilFebruary 20, 2025
Introduced by Senator Alvarado-Gil
February 20, 2025
An act to add Section 2784.5 to the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 527, as introduced, Alvarado-Gil. Worker classification: employees and independent contractors: athletic coaches.
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 entitys 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.
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 entitys 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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 2784.5 is added to the Labor Code, to read:2784.5. (a) 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.(b) For purposes of this section, the following terms have the following meanings:(1) Local educational agency means a school district, county office of education, charter school, or state special school.(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 2784.5 is added to the Labor Code, to read:2784.5. (a) 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.(b) For purposes of this section, the following terms have the following meanings:(1) Local educational agency means a school district, county office of education, charter school, or state special school.(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.
SECTION 1. Section 2784.5 is added to the Labor Code, to read:
### SECTION 1.
2784.5. (a) 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.(b) For purposes of this section, the following terms have the following meanings:(1) Local educational agency means a school district, county office of education, charter school, or state special school.(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.
2784.5. (a) 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.(b) For purposes of this section, the following terms have the following meanings:(1) Local educational agency means a school district, county office of education, charter school, or state special school.(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.
2784.5. (a) 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.(b) For purposes of this section, the following terms have the following meanings:(1) Local educational agency means a school district, county office of education, charter school, or state special school.(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.
2784.5. (a) 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.
(b) For purposes of this section, the following terms have the following meanings:
(1) Local educational agency means a school district, county office of education, charter school, or state special school.
(2) Sports coach means a natural person paid by a private school or local educational agency to coach an athletic program.