Employees under the California Unemployment Insurance Code

Article 1.5 of Chapter 3 of Part 1 of Division 1 of the California Unemployment Insurance Code deals with employees. Section 621 defines an “employee” to be any officer of a corporation; any individual providing labor or services for remuneration who has the status of an employee rather than an independent contractor, unless the hiring entity demonstrates all of the specified conditions; any individual who performs services for remuneration for any employing unit if the contract of service contemplates that substantially all of those services are to be performed personally by that individual as a certain agent-driver, traveling salesperson, or home worker.

However, an individual is not included in the term “employee” under the provisions of this subdivision if that individual has a substantial investment in facilities used in connection with the performance of those services, other than in facilities for transportation, or if the services are in the nature of a single transaction not part of a continuing relationship with the employing unit for whom the services are performed.

Section 621.5 defines “employee” to also mean any individual who is an employee of a person who holds a valid state contractor’s license. Also, an “employee” is any individual who is an employee of a person who is required to obtain a valid state contractor’s license.

Section 622 provides that “employee” does not include a director of a corporation or association performing services in his or her capacity as a director. The phrase “services in his or her capacity as a director” is defined.

Section 623 states that the term “employee” does not include any member of a limited liability company that is treated as a partnership for federal income tax purposes.