I think the confusion here is who is doing the classifying for what purpose. In the case of the IRS, they have rules to classify a person as an employee for tax

I think the confusion here is who is doing the classifying for what purpose. In the case of the IRS, they have rules to classify a person as an employee for tax purposes, and the state will have rules to classify an employee for benefits and awards purposes. They can, and sometimes will, be totally different in different states. In this case, it is all about benefits and awards. That is why they are talking about California law.