California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 2.5 - WITHHOLDING TAX ON WAGES › Chapter 1 - GENERAL PROVISIONS › Section 4304-7 - Specific Application of Rules for Determination of Employment Status to Circumstances in the Product Demonstrator Industry

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The common law rules used to determine
					 whether services are performed as an employee or as an independent contractor
					 are contained in Section
					 4304-1. That section provides that
					 "the most important factor is the right of the principal to control the manner
					 and means of accomplishing a desired result. If the principal has the right to
					 control the manner and means of accomplishing the desired result, whether or
					 not that right is exercised, an employer-employee relationship exists." The
					 purpose of this Section is to provide the product demonstrator industry with
					 standards to be used in conjunction with Section
					 4304-1 whether a product
					 demonstrator is performing services as an employee or independent contractor.
					 The factors contained in this section are indicators of the right to control
					 Not all applications listed in this section are necessary to make a
					 determination that a particular relationship exists. A determination of whether
					 services are being performed as an employee or independent contractor will
					 depend upon a grouping of factors that are significant in relation to the
					 services being performed.
(b) A
					 "product demonstrator" is an individual who distributes coupons, demonstrates
					 or gives away samples of products as part of an advertising or sales promotion
					 for the product.
(c) To determine
					 whether one performs services for another as an employee, the most important
					 factor is the right of the principal to control the manner and means of
					 accomplishing a desired result. If the principal has the right to control the
					 manner and means of accomplishing the desired result, whether or not that right
					 is exercised, an employer-employee relationship exists. Strong evidence of that
					 right to control is the principal's right to discharge at will, without further
					 liability. A "principal" is defined as any principal or their agent, e.g.
					 manufacturer, wholesaler, broker, marketing firm, demonstration company, or
					 retail store (see following tables).
(d) - (l) The following secondary factors may
					 be used to determine whether a product demonstrator is an employee or an
					 independent contractor. These secondary factors are examples of conduct and
					 should be weighed in light of the activity being performed by the individual.
					 When the factors are considered, a determination of whether the individual is
					 an employee will depend on a grouping of factors that are significant in
					 relation to the services being performed (see following tables).
1. New
						section filed 3-17-92; operative 4-16-92 (Register 92, No.
						13).
Note: Authority cited: Sections
						  305
						  and
						  306,
						  Unemployment Insurance Code. Reference: Section
						  621, Unemployment
						  Code.