EmploymentQuestion 644 of 690
Under California's ABC test codified in Labor Code §2775 (AB-5), a worker is presumed to be an EMPLOYEE (not an independent contractor) unless the hiring entity proves all three of the following EXCEPT:
a.The worker is free from the control and direction of the hiring entity in connection with the performance of the work
b.The worker performs work that is outside the usual course of the hiring entity's business
c.The worker has signed a written 'independent contractor agreement' acknowledging that status
d.The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed
Explanation
Labor Code §2775 (codifying Dynamex and AB-5) presumes employee status unless the hiring entity proves all three ABC prongs: (A) freedom from control, (B) work outside the usual course of the hiring entity's business, and (C) independent establishment in the same trade. A written 'independent contractor agreement' is NOT one of the ABC prongs — labels are explicitly disregarded; substance controls. The construction-subcontractor exception in §2781 still requires the sub to be licensed and meet additional criteria; without those, even a written agreement cannot create independent-contractor status.
Law Reference: Labor Code §2775 (AB-5)Practice all 690 questions free — no signup required.
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