Workers' CompensationQuestion 209 of 215

Under California's ABC test (Labor Code §2775), a worker is classified as an employee — and therefore must be covered by workers' compensation — unless the hiring entity proves all three of which conditions?

a.Worker is over 18; signs a contract; is paid by 1099

b.Worker is free from control/direction of the hirer; performs work outside the usual course of the hirer's business; is customarily engaged in an independently established trade

c.Worker owns their own tools; has another job; lives in California

d.Worker is licensed; has business cards; sets their own hours

Explanation

Labor Code §2775 codifies the ABC test from Dynamex / AB 5. To classify a worker as an independent contractor (and thereby avoid the WC obligation), the hiring business must prove ALL THREE prongs: (A) freedom from control and direction, (B) the work is outside the hirer's usual course of business, and (C) the worker is customarily engaged in an independently established trade or business of the same nature.

Law Reference: Cal. Labor Code §2775 (AB 5 / ABC test)

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Under California's ABC test (Labor Code §2775), a worker is classified as an employee — and therefore must be covered by workers' compensation — unless the hiring entity proves all three of which conditions?

Explanation

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