Legal Update Memo No. 04-2024 – New Requirements for Categorically Funded Employment Contracts (K-12)

Download PDF: 04-2024 – New Requirements for Categorically Funded Employment Contracts (SPR)

This is a reminder that commencing July 1, 2024, AB 897 modifies categorically funded employment contract requirements for certificated positions.

Contracts for employment of certificated employees for categorically funded projects are governed by Education Code §44909.  This statute permits districts to employ persons possessing an appropriate credential as certificated employees to perform services conducted under contract with public or private agencies, or categorically funded projects that are not required by federal or state statutes.

The law now requires that employment agreements for categorically funded positions be mutually agreed upon by the employee and the governing board, in writing, and include the following:

  1. The expected end date of employment;
  2. The source of the funding; and
  3. The nature of the categorically funded program or project.

Employment under a categorical program pursuant to Education Code §44909 does not count toward permanent status unless:

  1. The person has served in the categorical position for at least 75 percent of the number of days of the regular schools of the district by which the person is employed are maintained; and
  2. The person is subsequently employed as a probationary employee in a position requiring certification qualifications.

Our office is happy to provide clients with a complementary employment contract for categorically funded employees upon request.

Please contact our office with questions regarding this Legal Update or any other legal matter.


The information in this Legal Update is provided as a summary of law and is not intended as legal advice.  Application of the law may vary depending on the particular facts and circumstances at issue.  We, therefore, recommend that you consult legal counsel to advise you on how the law applies to your specific situation.


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