New expanded tests for determining who is CA independent contractor

Expanded tests for CA independent contractors

On September 18, California Governor Newsom signed Assembly Bill 5 into law. The law expands the use of the “ABC test” to determine if workers in California are employees or independent contractors.

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Under the ABC test, a worker is presumed to be an employee unless the company proves that the worker:

    • (A) Is free from the control and direction of the company in performing work, both practically and in the contractual agreement between the parties; and
    • (B) Performs work that is outside the usual course of the company’s business; and
    • (C) Is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the company.

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