EmploymentQuestion 911 of 1632
Under the ABC test, prong 'B' requires that the worker perform work that is:
a.Performed only at the worker's home
b.Outside the usual course of the hiring entity's business
c.Approved by the Labor Commissioner in advance
d.Compensated by the hour rather than by the project
Explanation
Prong B of the ABC test (Labor Code §2775) requires that the worker perform work outside the usual course of the hiring entity's business. For example, a plumbing company that hires an outside accountant may satisfy prong B because accounting is outside plumbing; but a plumbing company hiring a plumber to do plumbing work cannot satisfy prong B. Where the work is performed and how pay is structured are not part of prong B.
Law Reference: Labor Code §2775 (AB 5)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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