3. The Professional Services Exemption

Unfortunately, the worker does not qualify under the business-to-business exemption, but may instead qualify under the professional services exemption. However, even if the worker qualifies under this exemption, the worker will still need to pass the Borello test to be classified as an independent contractor. As a reminder, 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 professional services exemption questions should still be answered because not qualifying under this exemption will most likely classify your worker as an employee. Qualifying under this exemption, though, may or may not classify your worker as an independent contractor, depending on the results of the Borello test.

To qualify under the professional services exemption, the worker must be providing or is an industry that provides “professional services” and also meet 6 additional requirements. “Professional services” is defined under the law as the individuals or industries listed below. However, there are certain professional services that are complicated to qualify under as there are additional factors and/or requirements to consider that are beyond the scope of ICAT. If your worker performs a professional service or is in a professional service industry with an asterisk (*) next to it, please read the paragraph after the list below.

Does the worker perform or is in an industry of any of the “professional services” listed below?

• Marketing*

• Administrator of human resources*

• Travel agents*

• Graphic designers

• Grant writers

• Fine artists*

• IRS Agents

• Payment processing agents through an independent sales organization

• Still photographers, photojournalists, videographers, or photo editors*

• Digital content aggregators*

• Freelance writers, translators, editors, copy editors, illustrators, or newspaper cartoonists*

• Individual content contributors, advisors, producers, narrators, or cartographers for a journal, book, periodical, evaluation, or other publication or educational, academic, or instructional work in any format or media*

• Licensed estheticians, licensed electrologists, licensed manicurists, licensed barbers, or licensed cosmetologists*

• Specialized performers hired by a performing arts company or organization to teach a master class for no more than one week*

• Appraisers

• Registered Foresters

• Real Estate Agents

• Home Inspectors

• Repossession Agencies

 *Additional factors and/or requirements may apply that are complicated to list here. Because of the complexity, it is best to consult with an attorney to determine whether your worker qualifies under this professional service. Schedule a 30 minute phone consultation for a discounted rate of $100 below to learn whether your worker can qualify under this certain professional service.