2. Business-to-Business Exemption

Unfortunately, the worker does not qualify under the occupation exemption, but may instead qualify under the business-to-business exemption. However, even if the worker qualifies under this exemption, the worker will still need to pass an additional test to be classified as an independent contractor, called the “Borello test,” which can be ambiguous and difficult to apply. When applying the Borello test, it is strongly recommended that you consult with an attorney to properly assess whether your worker is an independent contractor.

Regardless, the business-to-business exemption questions should still be answered to assess whether your worker can qualify as an independent contractor. Answering “no” to any of the 12 questions will most likely classify your worker as an employee unless your worker can qualify under the professional services exemption. Answering “yes” to every question means the worker qualifies under the business-to-business exemption, but may or may not be classified as an independent contractor, depending on the results of the Borello test.

Question 1/12

1. Is the worker doing business as any of the following entities?

   • sole proprietor

   • partnership

   • limited liability company

   • limited liability partnership

   • corporation

   • public agency

   • quasi-public corporation