EmploymentQuestion 241 of 1632

Under the ABC test, prong "B" requires that, to classify a worker as an independent contractor, the worker must:

a.Hold a contractor license and post their own surety bond
b.Perform work outside the hiring entity's usual business
c.Be paid by the project rather than by the hours worked
d.Have worked in that trade for at least five full years

Explanation

Prong B asks one thing: is the work outside the usual course of the hiring entity's business? A framer hired by a framing contractor fails it, because framing is that company's core business. The ABC test was enacted by AB 5 at Labor Code §2750.3; AB 2257 repealed that section in 2020 and the test now sits at §2775(b)(1). A licensed framing subcontractor can still be an independent contractor — not through prong B, but through the separate construction-subcontractor criteria at §2781, which is where the license and bond requirements live. Method of payment comes from the older Borello factors, and years in the trade appears in no prong at all.

Law Reference: Labor Code §2775(b)(1); §2781

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