Business FinancesQuestion 507 of 1605
Under California AB 5, what must a hiring contractor demonstrate to classify a worker as an independent contractor under the "ABC test"?
a.(A) The worker is free from the hirer's control, (B) performs work outside the hirer's usual course of business, and (C) is customarily engaged in an independently established trade
b.Only that the worker signed a 1099 acknowledgement form
c.That the worker provides their own tools and sets their own hours
d.That the worker has earned at least $5,000 per year for three years
Explanation
California's ABC test (codified by AB 5, Labor Code §2775) requires all three prongs: (A) freedom from control, (B) work outside the usual course of the hirer's business, and (C) independently established trade. Failing any prong defaults the worker to employee status, unless an exception applies (in which case the older Borello multi-factor test may apply).
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)