Which California rules apply when a helper works under my brand?

What does California's privacy law call a service provider?

California's privacy law says a service provider is a person that handles personal information for a business, under a written contract. In the law's words, a service provider "means a person that processes personal information on behalf of a business and that receives from or on behalf of the business consumer’s personal information for a business purpose pursuant to a written contract, provided that the contract prohibits the person from:" The first item on that list reads: "(A) Selling or sharing the personal information."

The list goes on past that first item. The section's last line reads "Effective January 1, 2026." Read Civil Code section 1798.140 in full.

Does a service provider have to tell the business about its helpers?

California's privacy law says a service provider that brings in another person to help handle personal information must tell the business, and that helper must be under a written contract with the same limits.

The sentence starts: "If a service provider engages any other person to assist it in processing personal information for a business purpose on behalf of the business" It ends: "it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1)."

We show this rule for every choice that puts a helper behind your brand, our own team included. Ask a lawyer whether it applies to you, and whether it applies to a tool you use.

Which businesses does California's privacy law cover?

The privacy law covers a business that does business in California and meets one of three tests. In the law's words, it's a business "that does business in the State of California, and that satisfies one or more of the following thresholds:"

• "had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to subdivision (d) of Section 1798.199.95."
• "annually buys, sells, or shares the personal information of 100,000 or more consumers or households."
• "Derives 50 percent or more of its annual revenues from selling or sharing consumers’ personal information."

The first test's dollar figure is adjusted over time. California's privacy agency gives it as $26.625 million or more, effective January 1, 2025. Its page lists the three tests this way: "Have a gross annual revenue of $26.625 million or more (effective January 1, 2025) for the preceding calendar year; Buy, sell, or share the personal information of 100,000 or more California residents or households; or Derive 50% or more of their annual revenue from selling or sharing California residents' personal information." See the agency's questions page.

What counts as personal information under California's privacy law?

Personal information is information that can be linked to a particular consumer or household. The law's words are that it "could reasonably be linked, directly or indirectly, with a particular consumer or household." Its list names "online identifier, Internet Protocol address, email address, account name" and "browsing history, search history, and information regarding a consumer’s interaction with an internet website application, or advertisement."

The law also says what's left out: "“Personal information” does not include consumer information that is deidentified or aggregate consumer information." It says aggregate consumer information "means information that relates to a group or category of consumers, from which individual consumer identities have been removed, that is not linked or reasonably linkable to any consumer or household, including via a device."

Ask a lawyer whether a client list or a report falls inside the term.

What does California's sales tax rule say about agency fees?

California's sales tax rule for advertising agencies says that designing, editing or hosting a website, with no physical goods changing hands, is a service, and the charge isn't taxed. Its words: "(E) Websites. The design, editing, or hosting of an electronic website in which no tangible personal property is transferred to the client is a service, the charge for which is not subject to tax."

The same rule lists fees that aren't taxable when they're stated on their own: "(F) Specific Nontaxable Charges. The following and similar fees and commissions are not taxable when they are separately stated." Two on its list: "3. Consultation and concept development fees related to client discussion, development of ideas, and other services." and "4. Fees for research or account planning that entail consumer research and the application of that research" The rule doesn't name SEO or reports.

Your accountant can say how it applies to you. Read Regulation 1540 in full.

What does California's sales tax rule say about software?

California's sales tax rule on computer programs says the sale of a ready-made program sent over remote telecommunications, with no physical copy, isn't a taxable sale. Its words: "(D) The sale or lease of a prewritten program is not a taxable transaction if the program is transferred by remote telecommunications from the seller's place of business, to or through the purchaser's computer and the purchaser does not obtain possession of any tangible personal property, such as storage media, in the transaction."

The rule is about a program that's sold or leased. Whether a monthly plan for an online tool is taxed isn't on the page. Ask your accountant. Read Regulation 1502 in full.

When does California treat a worker as an employee?

California law treats a worker as an employee unless the hiring firm shows three things: the worker is free from its control, does work outside its usual business, and runs an independent business of that kind.

The law's words: "a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that all of the following conditions are satisfied:"

• "(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact."
• "(B) The person performs work that is outside the usual course of the hiring entity’s business."
• "(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed."

This matters for the in-house choice when the person who builds your reports is a solo contractor. That person can be an employee or a contractor. A contractor's rate varies. An employee's pay comes with payroll taxes, and What it costs lists the rates.

Read Labor Code section 2775 and the state's own page on the test.

Does a business-to-business contract change California's worker test?

California's Labor Code sets a real business-to-business contract apart from its three-part worker test when the hiring business shows all 12 things on the law's list. Its words: "Section 2775 and the holding in Dynamex do not apply to a bona fide business-to-business contracting relationship, as defined below, under the following conditions:" Such a contract "shall be governed by Borello, if the contracting business demonstrates that all of the following criteria are satisfied:"

One of the 12 is about who the provider serves. In plain words, the provider serves the hiring business directly, and not that business's customers. That item doesn't apply when the provider's own staff do the work under the provider's name and the provider regularly contracts with other businesses. The law's words: "(2) The business service provider is providing services directly to the contracting business rather than to customers of the contracting business. This subparagraph does not apply if the business service provider’s employees are solely performing the services under the contract under the name of the business service provider and the business service provider regularly contracts with other businesses."

Ask a lawyer whether a contract of yours meets the list. Read Labor Code section 2776 in full.

Does California's worker law set marketing work apart?

California's Labor Code also sets some contracts for professional services apart from its three-part worker test when six listed things are shown, and its list of such services names marketing work that's original and creative in character. Its words: "Section 2775 and the holding in Dynamex do not apply to a contract for “professional services” as defined below, and instead the determination of whether the individual is an employee or independent contractor shall be governed by Borello if the hiring entity demonstrates that all of the following factors are satisfied:"

In the law's words: "(A) Marketing, provided that the contracted work is original and creative in character and the result of which depends primarily on the invention, imagination, or talent of the individual or work that is an essential part of or necessarily incident to any of the contracted work." One of the six things: "(6) The individual customarily and regularly exercises discretion and independent judgment in the performance of the services."

Ask a lawyer whether building a monthly report is that kind of work. Read Labor Code section 2778 in full.

What's the minimum wage if you pay hourly help?

California's minimum wage is $16.90 an hour for all employers from January 1, 2026, unless a higher wage for an industry or a place applies. The state's page says: "Effective January 1, 2026, the minimum wage is $16.90 per hour for all employers, not otherwise covered by a higher minimum wage specific to an industry or a locality." A city or an industry can set a higher wage.

The federal minimum wage is $7.25 an hour, in force since July 24, 2009.

What do the pages and AI answers we read say about California?

None of the 3 top search results we read on October 8, 2026 gives a California fact. The 3 top results we read are each written by a company that sells white label SEO.

We also sampled AI answers on October 8, 2026, from a browser in Arizona. None of the 3 answers to the main question gave a California fact. None of the 6 answers to six other wordings of it did either. That's a small sample.