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.
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.