(

a) Section 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.

(3) The individual has the ability to set or negotiate their own rates for the services performed.

(4) Outside of project completion dates and reasonable business hours, the individual has the ability to set the individual’s own hours.

(5) The individual is customarily engaged in the same type of work performed under contract with another hiring entity or holds themselves out to other potential customers as available to perform the same type of work.

(6) The individual customarily and regularly exercises discretion and independent judgment in the performance of the services. (

b) For purposes of this section:

(1) An “individual” includes an individual providing services as a sole proprietor or other business entity. (2) “Professional services” means services that meet any of the following: (

A) Marketing, provided that the contracted work is original and creative in character and the result of which depends primarily on the invention, imagination, or talent of the individual or work that is an essential part of or necessarily incident to any of the contracted work. (

B) Administrator of human resources, provided that the contracted work is predominantly intellectual and varied in character and is of such character that the output produced or the result accomplished cannot be standardized in relation to a given period of time. (

C) Travel agent services provided by either of the following: (

i) A person regulated by the Attorney General under

Article 2.6 (commencing with

Section 17550) of

Chapter of Part of Division of the Business and Professions Code. (ii) An individual who is a seller of travel within the meaning of subdivision (

a) of

Section 17550.1 of the Business and Professions Code and who is exempt from the registration under subdivision (

g) of

Section 17550.20 of the Business and Professions Code. (

D) Graphic design. (

E) Grant writer. (F) (

i) Fine artist. (ii) For the purposes of this subparagraph, “fine artist” means an individual who creates works of art to be appreciated primarily or solely for their imaginative, aesthetic, or intellectual content, including drawings, paintings, sculptures, mosaics, works of calligraphy, works of graphic art, crafts, or mixed media. (

G) Services provided by an enrolled agent who is licensed by the United States Department of the Treasury to practice before the Internal Revenue Service pursuant to Part of Subtitle A of Title of the Code of Federal Regulations. (

H) Payment processing agent through an independent sales organization. (

I) Services provided by any of the following: (

i) By a still photographer, photojournalist, videographer, or photo editor who works under a written contract that specifies the rate of pay and obligation to pay by a defined time, as long as the individual providing the services is not directly replacing an employee who performed the same work at the same volume for the hiring entity; the individual does not primarily perform the work at the hiring entity’s business location, notwithstanding paragraph (1) of subdivision (a); and the individual is not restricted from working for more than one hiring entity.

This subclause is not applicable to a still photographer, photojournalist, videographer, or photo editor who works on motion pictures, which is inclusive of, but is not limited to, theatrical or commercial productions, broadcast news, television, and music videos. Nothing in this

section restricts a still photographer, photojournalist, photo editor, or videographer from distributing, licensing, or selling their work product to another business, except as prohibited under copyright laws or workplace collective bargaining agreements. (ii) To a digital content aggregator by a still photographer, photojournalist, videographer, or photo editor. (iii) For the purposes of this subparagraph the following

definitions apply: (I) “Photo editor” means an individual who performs services ancillary to the creation of digital content, such as retouching, editing, and keywording. (II) “Digital content aggregator” means a licensing intermediary that obtains a license or assignment of copyright from a still photographer, photojournalist, videographer, or photo editor for the purposes of distributing that copyright by way of sublicense or assignment, to the intermediary’s third-party end users. (

J) Services provided by a freelance writer, translator, editor, copy editor, illustrator, or newspaper cartoonist who works under a written contract that specifies the rate of pay, intellectual property rights, and obligation to pay by a defined time, as long as the individual providing the services is not directly replacing an employee who performed the same work at the same volume for the hiring entity; the individual does not primarily perform the work at the hiring entity’s business location, notwithstanding paragraph (1) of subdivision (a); and the individual is not restricted from working for more than one hiring entity. (

K) Services provided by an individual as a content contributor, adviser, producer, narrator, or cartographer for a journal, book, periodical, evaluation, other publication or educational, academic, or instructional work in any format or media, who works under a written contract that specifies the rate of pay, intellectual property rights, and obligation to pay by a defined time, as long as the individual providing the services is not directly replacing an employee who performed the same work at the same volume for the hiring entity, the individual does not primarily perform the work at the hiring entity’s business location notwithstanding paragraph (1) of subdivision (a), and the individual is not restricted from working for more than one hiring entity. (L) (

i) Services provided by a licensed esthetician, licensed electrologist, licensed manicurist, licensed barber, or licensed cosmetologist provided that the individual: (

I) Sets their own rates, processes their own payments, and is paid directly by clients. (II) Sets their own hours of work and has sole discretion to decide the number of clients and which clients for whom they will provide services. (III) Has their own book of business and schedules their own appointments. (IV) Maintains their own business license for the services offered to clients. (

V) If the individual is performing services at the location of the hiring entity, then the individual issues a Form to the salon or business owner from which they rent their business space. (ii) The Employment Development Department and the Division of Labor Standards Enforcement shall report to the Legislature by June 1, 2026, in compliance with

Section of the Government Code, the annual number of allegations of misclassification or other violations of this code involving licensed manicurists since January 1, 2020, including the number of investigations undertaken, the number of workers impacted, and the number and outcomes of enforcement actions initiated. (iii) This subparagraph shall become inoperative, with respect to licensed manicurists, on January 1, 2029. (

M) A specialized performer hired by a performing arts company or organization to teach a master class for no more than one week. “Master class” means a specialized course for limited duration that is not regularly offered by the hiring entity and is taught by an expert in a recognized field of artistic endeavor who does not work for the hiring entity to teach on a regular basis. (

N) Services provided by an appraiser, as defined in

Part 3 (commencing with

Section 11300) of Division of the Business and Professions Code. (

O) Registered professional foresters licensed pursuant to

Article 3 (commencing with

Section 750) of

Chapter 2.5 of Division of the Public Resources Code. (

c) Section and the holding in Dynamex do not apply to the following, which are subject to the Business and Professions Code:

(1) A real estate licensee licensed by the State of California pursuant to Division 4 (commencing with

Section 10000) of the Business and Professions Code, for whom the determination of employee or independent contractor status shall be governed by subdivision (

b) of

Section of the Business and Professions Code. If that

section is not applicable, then this determination shall be governed as follows: (

A) For purposes of unemployment insurance by

Section of the Unemployment Insurance Code. (

B) For purposes of workers’ compensation by

Section et seq. (

C) For all other purposes in the Labor Code by Borello. The statutorily imposed duties of a responsible broker under

Section 10015.1 of the Business and Professions Code are not factors to be considered under the Borello test.

(2) A home inspector, as defined in

Section of the Business and Professions Code, and subject to the provisions of

Chapter 9.3 (commencing with

Section 7195) of Division of that code.

(3) A repossession agency licensed pursuant to

Section 7500.2 of the Business and Professions Code, for whom the determination of employee or independent contractor status shall be governed by

Section 7500.2 of the Business and Professions Code, if the repossession agency is free from the control and direction of the hiring person or entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.