CALIFORNIA STATUTES AND CODES
SECTIONS 675-687.2
UNEMPLOYMENT INSURANCE CODE
SECTION 675-687.2
675. "Employer" means any employing unit, which for some portion of
a day, has within the current calendar year or had within the
preceding calendar year in employment one or more employees and pays
wages for employment in excess of one hundred dollars ($100) during
any calendar quarter.
676. "Employer" also means any employing unit, for which services
are performed that are included in "employment" solely for the
purposes of Part 2 (commencing with Section 2601) of this division,
which for some portion of a day, has within the current calendar year
or had within the preceding calendar year one or more employees
performing such services, and pays wages for such service in excess
of one hundred dollars ($100) during any calendar quarter.
677. "Employer" also means any employing unit for which service is
performed in "employment" as defined by Section 605.
678. "Employer" means any employing unit which pursuant to a
collective bargaining agreement between an employer and a labor
organization in the motion picture, radio, or television industry,
pays wages as provided in Section 926.5.
679. (a) Notwithstanding Sections 606.5, 621, and 678, for the
purposes of this code, "employer" means any employing unit that is a
motion picture payroll services company who pays and controls the
payment of wages of a motion picture production worker for services
either to a motion picture production company or to an allied motion
picture services company. The motion picture payroll services company
must also have filed a timely statement of its intent to be the
employer of motion picture production workers pursuant to subdivision
(b).
(b) (1) Any employing unit meeting the requirements of a motion
picture payroll services company, as defined by this section, that
intends to be treated as an employer of motion picture production
workers pursuant to subdivision (a) shall file a statement with the
department that declares its intent to be the employer of motion
picture production workers, pursuant to this section, within 15 days
after first paying wages to the workers. The statement shall include
identification of all affiliated entities as defined by this section.
(2) Any employing unit operating as a motion picture payroll
services company as of January 1, 2007, that intends to be treated as
an employer of motion picture production workers pursuant to this
section, shall file a statement with the department that declares its
intent to be the employer of motion picture production workers,
pursuant to this section, by January 15, 2007. The statement shall
include identification of all affiliated entities as defined by this
section.
(3) Any motion picture payroll company that quits business shall:
(A) Within 10 days of quitting business:
(i) File with the director, a final return and report of wages of
its workers, as required by Section 1116.
(ii) File all statements required by this subdivision.
(B) Forty-five days in advance of quitting business, notify the
motion picture production companies and allied motion picture
services companies, with respect to which they have been treated as
the employer of the motion picture production workers, of its intent
to quit business.
(4) The director may prevent a motion picture payroll services
company that fails to file a timely statement, as required by this
section, from being treated as an employer of motion picture
production workers, for a period not to exceed the period for which
the statement is required.
(5) Any statement filed by a motion picture payroll services
company pursuant to this subdivision shall be applied to all
affiliated entities of the motion picture payroll services company in
existence at the time the statement is filed.
(c) For each rating period beginning on or after January 1, 2007,
in which an employer operating as a motion picture payroll services
company obtains or attempts to obtain a more favorable rate of
contributions under this section in a manner that is due to
deliberate ignorance, reckless disregard, fraud, intent to evade,
misrepresentation, or willful nondisclosure, the director shall
assign the maximum contribution rate plus 2 percent for each
applicable rating period, the current rating period, and the
subsequent rating period. Contributions paid in excess of the maximum
rate under this section shall not be credited to the employing unit'
s reserve account.
(d) (1) On and after January 1, 2007, whenever a motion picture
payroll services company creates or acquires a motion picture payroll
services company, or acquires substantially all of the assets of a
motion picture payroll services company, the created or acquired
motion picture payroll services company shall:
(A) Constitute a separate employing unit, notwithstanding Sections
135.1 and 135.2.
(B) Have its reserve account and rate of contributions determined
in accordance with subdivision (e).
(C) Notify the department of the entity being created or acquired
and the nature of its affiliation to that entity.
(2) The department may promulgate regulations requiring a motion
picture payroll services company, prior to the creation or
acquisition of a motion picture payroll services company that will be
an affiliated entity, to seek the approval of the department to
apply the provisions of this section to the created or acquired
entity.
(e) When a motion picture payroll services company transfers all
or part of its business or payroll to another motion picture payroll
services company, as defined by this section, the reserve account
attributable to the transferor shall be transferred to the transferee
motion picture payroll services company, and the transferee's rate
of contribution shall be determined in accordance with Section 1052.
The transferee shall notify the department within 15 days of the
transfer of the business or payroll.
(f) For purposes of this section, the following definitions apply:
(1) "Affiliated entity" means any one or more motion picture
payroll services company or companies that are united by factors of
common ownership, management, or control as prescribed by Section
1061.
(2) "Allied motion picture services company" means any person
engaged in an industry closely allied with, and whose work is
integral to, a motion picture production company in the development,
production, or postproduction of a motion picture, excluding the
distribution of the completed motion picture and any activities
occurring thereafter, and who hires from the same pool of craft and
guild or union workers, actors, or extras as a motion picture
production company.
(3) "Motion picture" means a motion picture of any type, including
a theatrical motion picture, a television production, a television
commercial, a music video, or any other type of motion picture
regardless of its theme or the technology used in its production or
distribution.
(4) (A) "Motion picture payroll services company" means any
employing unit that directly or through its affiliated entities meets
all of the following criteria:
(i) Contractually provides the services of motion picture
production workers to a motion picture production company or to an
allied motion picture services company.
(ii) Is a signatory to a collective bargaining agreement for one
or more of its clients.
(iii) Controls the payment of wages to the motion picture
production workers and pays those wages from its own account or
accounts.
(iv) Is contractually obligated to pay wages to the motion picture
production workers without regard to payment or reimbursement by the
motion picture production company or allied motion picture services
company.
(v) At least 80 percent of the wages paid by the motion picture
payroll services company each calendar year are paid to workers
associated between contracts with motion picture production companies
and motion picture payroll services companies.
(B) If the director determines that any employing unit is
operating as a motion picture payroll services company but is failing
to comply with any of the provisions of subparagraph (A) of
paragraph (4), the employing unit is subject to determination of the
employer-employee relationship pursuant to this code. When the
director's ruling becomes final, the director may preclude the
employing unit from being classified as a motion picture payroll
services company pursuant to this section for up to three years from
the date of the determination.
(5) "Motion picture production company" means any employing unit
engaged in the development, production, and postproduction of a
motion picture, excluding the distribution of the completed motion
picture and any activities occurring thereafter.
(6) "Motion picture production worker" means an individual who
provides services to a motion picture production company or allied
motion picture services company and who, with regard to those
services, is reported under this part as an employee by the motion
picture payroll services company. An individual who has been reported
as an employee by the motion picture payroll services company,
without regard to the individual's status as an employee or
independent contractor, shall be the employee of the motion picture
payroll services company for the purposes of this code throughout the
contractual period with the motion picture payroll services company.
(7) "Wages" shall have the same meaning given the term in Article
2 (commencing with Section 926) of Chapter 4 of Part 1 of Division 1,
and shall include residual payments.
(g) If the director determines that an entity does not meet any of
the requirements specified by this section, the director shall give
notice of its determination to that entity pursuant to Section 1206.
The notice shall contain a statement of the facts and circumstances
upon which the determination was made. The entity so noticed shall
have the right to petition for review of the director's determination
within 30 days of the notice, as provided in Section 1222.
(h) The director shall prescribe the form and manner of the
statements and information required to be filed or reported by this
section.
(i) On or before December 31, 2010, the department may report to
the Legislature regarding the impact of this section on the
Unemployment Insurance Fund and the entertainment industry.
(j) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, which is chaptered before January 1, 2012, deletes or
extends that date.
680. (a) Notwithstanding any other provision of law, when motion
picture production workers are employed by one or more affiliated
entities of a motion picture payroll services company that has
elected to be treated and is being treated as the employer of those
motion picture production workers pursuant to Section 679, the motion
picture payroll services company may apply to the director for
approval of the extension of an existing voluntary plan or plans for
the payment of disability benefits to all motion picture production
workers employed by all of the affiliated entities of the motion
picture payroll services company. The director shall approve the
extension of the voluntary plan to all of the motion picture
production workers of all of the affiliated entities if he or she
finds all of the following exist:
(1) The voluntary plan to be extended was in existence at the time
of the election of the motion picture payroll services company to be
treated as the employer of motion picture production workers
pursuant to Section 679.
(2) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625) and
Chapter 7 (commencing with Section 3300) of Part 2 of Division 1.
(3) The plan has been made available to all of the motion picture
production workers of the employer employed in this state.
(4) If the plan provides for insurance, the form of the insurance
policies to be issued has been approved by the Insurance Commissioner
and the policies are to be issued by an admitted disability insurer.
(5) The motion picture payroll services company has consented to
the extension of the plan and has agreed to make the payroll
deductions required, if any, and transmit the proceeds to the plan
insurer, if any.
(6) The plan provides for the inclusion of future employees in the
manner described in subparagraph (A) of paragraph (2) of subdivision
(b).
(7) (A) The plan will be in effect for a period of not less than
one year and, thereafter, continuously, unless the director finds
that the motion picture payroll services company or a majority of
motion picture production workers employed in this state covered by
the plan has given notice of withdrawal from the plan. The notice
shall be filed in writing with the director and shall be effective
only on the anniversary of the effective date of the plan next
following the filing of the notice, but in any event not less than 30
days from the date of the filing of the notice.
(B) Notwithstanding the provisions of subparagraph (A), the plan
may be withdrawn on the operative date of any law increasing the
benefit amounts provided by Sections 2653 and 2655 or on the
operative date of any change in the rate of worker contributions as
determined by Section 984, if notice of the withdrawal from the plan
is transmitted to the director not less than 30 days prior to the
operative date of that law or change. If the plan is not withdrawn on
30 days' notice because of the enactment of a law increasing the
benefit amounts provided by Sections 2653 and 2655 or because of a
change in the rate of worker contributions as determined by Section
984, the plan shall be amended to conform to that increase or change
on the operative date of the increase or change.
(8) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on a date other than an
anniversary date of the effective date of the plan, except to the
extent that any increase in the deductions from the wages of an
employee allowed by Section 3260 permits that amount to exceed the
amount of deductions in effect. The amount of deductions, for the
purpose of providing coverage under the plan, shall not exceed that
which would be required by Sections 984 and 985 if the employee were
not covered by the plan.
(9) The approval of the extension of the plan will not result in a
substantial selection of risks adverse to the Disability Fund.
(b) The extension of a plan approved by the director pursuant to
subdivision (a) shall be deemed to have also met the consent
requirements of Section 3257 if both of the following requirements
are met:
(1) The plan met the consent requirements of Section 3257 when
initially adopted.
(2) The plan provides for both of the following:
(A) Each employee to whom the plan is applicable shall be given
written notice of his or her right to reject coverage under the plan
and a written statement setting forth the essential features of the
plan prior to or at the time of employment. The form of the notice
and of the statement shall be approved by the director.
(B) On or before January 31 of each calendar year, each employee
shall be given written notice, in a form approved by the director, of
his or her right to withdraw from the plan at the beginning of any
calendar quarter upon giving reasonable notice in writing directed to
the motion picture payroll services company.
682. (a) "Employer" also means any employing unit which employs
individuals to perform domestic service in a private home, local
college club, or local chapter of a college fraternity or sorority
and pays wages in cash of one thousand dollars ($1,000) or more for
such service during any calendar quarter in the calendar year or the
preceding calendar year.
(b) Any employing unit which qualifies as an employer under this
section shall not be treated as an employer with respect to wages
paid for any service other than domestic service specified by this
section unless such employing unit also qualifies as an employer with
respect to such other service under Section 675, 676, 677, or 678.
683. "Employer" also means any employing unit which employs
individuals to perform domestic service comprising in-home supportive
services under Article 7 (commencing with Section 12300), Chapter 3,
Part 3, Division 9 of the Welfare and Institutions Code and pays
wages in cash of one thousand dollars ($1,000) or more for such
service during any calendar quarter in the calendar year or the
preceding calendar year, and is one of the following:
(a) The recipient of such services, if the state or county makes
or provides for direct payment to a provider chosen by the recipient
or to the recipient of such services for the purchase of services,
subject to the provisions of Section 12302.2 of the Welfare and
Institutions Code.
(b) The individual or entity with whom a county contracts to
provide in-home supportive services.
(c) Any county which hires and directs in-home supportive
personnel in accordance with established county civil service
requirements or merit system requirements for those counties not
having civil service systems.
684. (a) Solely for the purposes of Part 2 (commencing with Section
2601) of this division, "employer" also means any employing unit
which employs individuals to perform domestic service in a private
home, local college club, or local chapter of a college fraternity or
sorority and pays wages in cash of seven hundred fifty dollars
($750) or more to individuals employed in such service during any
calendar quarter in the calendar year or the preceding calendar year.
(b) Any employing unit which qualifies as an employer under this
section shall not be treated as an employer with respect to wages
paid for any service other than domestic service specified by this
section unless such employing unit also qualifies as an employer with
respect to such other service under Section 675, 676, 677, or 678.
685. Solely for the purposes of Part 2 (commencing with Section
2601) of this division, "employer" also means any employing unit
which employs individuals to perform domestic service comprising
in-home supportive services under Article 7 (commencing with Section
12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and
Institutions Code and pays wages in cash of seven hundred fifty
dollars ($750) or more to individuals employed in such service during
any calendar quarter in the calendar year or preceding calendar
year, and is one of the following:
(a) The recipient of the services, if the state or county makes or
provides for direct payment to a provider chosen by the recipient or
to the recipient of the services for the purchase of services,
subject to the provisions of Section 12302.2 of the Welfare and
Institutions Code.
(b) The individual or entity with which a county contracts to
provide in-home supportive services.
(c) Any county which hires and directs in-home supportive
personnel in accordance with established county civil service
requirements or merit system requirements for those counties not
having civil service systems.
686. "Employer" also means any person contracting for the creation
of a specially ordered or commissioned work of authorship when the
parties expressly agree in a written instrument signed by them that
the work shall be considered a work made for hire, as defined in
Section 101 of Title 17 of the United States Code, and the ordering
or commissioning party obtains ownership of all of the rights
comprised in the copyright in the work. The ordering or commissioning
party shall be the employer of the author of the work for the
purposes of this part.
687.2. Notwithstanding any other provision of law, an employment
agency, as defined in paragraph (3) of subdivision (a) or subdivision
(h) of Section 1812.501 of the Civil Code, shall not be deemed to be
the employer of the domestic workers for whom it procures, offers,
refers, provides, or attempts to provide work if all of the following
factors exist:
(a) There is a signed contract or agreement between the employment
agency and the domestic worker that contains, at a minimum,
provisions that specify all of the following:
(1) That the employment agency shall assist the domestic worker in
securing work.
(2) How the employment agency's referral fee shall be paid.
(3) That the domestic worker is free to sign an agreement with
other employment agencies and to perform domestic work for persons
not referred by the employment agency.
(b) The domestic worker informs the employment agency of any
restrictions on hours, location, conditions, or type of work he or
she will accept and the domestic worker is free to select or reject
any work opportunity procured, offered, referred, or provided by the
employment agency.
(c) The domestic worker is free to renegotiate with the person
hiring him or her the amount proposed to be paid for the work.
(d) The domestic worker does not receive any training from the
employment agency with respect to the performance of domestic work.
However, an employment agency may provide a voluntary orientation
session in which the relationship between the employment agency and
the domestic worker, including the employment agency's administrative
and operating procedures, and the provisions of the contract or
agreement between the employment agency and the domestic worker are
explained.
(e) The domestic worker performs domestic work without any
direction, control, or supervision exercised by the employment agency
with respect to the manner and means of performing the domestic
work.
The following actions exercised by an employment agency shall not
be considered to be the exercise of direction, control, or
supervision:
(1) Informing the domestic worker about the services to be
provided and the conditions of work specified by the person seeking
to hire a domestic worker.
(2) Contacting the person who has hired the domestic worker to
determine whether that person is satisfied with the agency's referral
service. This contact shall not be used to identify improvements
needed in a worker's performance and to then discipline or train the
worker regarding the performance of domestic work.
(3) Informing the domestic worker of the time during which new
referrals are available.
(4) Requesting the domestic worker to inform the employment agency
if the domestic worker is unable to perform the work accepted.
(f) The employment agency does not provide tools, supplies, or
equipment necessary to perform the domestic work.
(g) The domestic worker is not obligated to pay the employment
agency's referral fee, and the employment agency is not obligated to
pay the domestic worker if the person for whom the services were
performed fails or refuses to pay for the domestic work.
(h) Payments for domestic services are made directly to either the
domestic worker or to the employment agency. Payments made directly
to the employment agency shall be deposited into a trust account
until payment can be made to the domestic worker. Payments made to
the domestic worker by the employment agency shall not be paid from
any of the employment agency's business accounts.
(i) The relationship between a domestic worker and the person for
whom the domestic worker performs services may only be terminated by
either of those parties and not by the employment agency that
referred the domestic worker. However, an employment agency may
decline to make additional referrals to a particular domestic worker,
and the domestic worker may decline to accept a particular referral.