Alex What is considered an independent contractor in California?
The basic test for determining whether a worker is an independent contractor or an employee is whether the principal has the right to control the manner and means by which the work is performed. If the principal does not have the right of control, the worker will generally be an independent contractor.
What makes someone an independent contractor in California?
To validly classify someone as an independent contractor under California law, the company must prove that the worker’s job functions fall outside the company’s core business. For example, a company that primarily does delivery or transportation must classify its drivers as “employees.”
What is the ABC test for independent contractors in California?
The “ABC test” is the most favorable test for independent contractors trying to prove that they are entitled to “employee” status. In 2019, the California legislature passed Assembly Bill 5 (AB5) which codified the California Supreme Court decision.
When does the new California independent contractor law go into effect?
The new law, which went into effect on January 1, 2020, essentially codified the California Supreme Court decision to adopt the “ABC test” for determining whether someone is a properly classified independent contractor.
Can a hiring entity determine the status of an independent contractor?
(Dynamex, 4 Cal.5th at 963.) The hiring entity cannot unilaterally determine a worker’s status simply by assigning the worker the label “independent contractor” or by requiring the worker, as a condition of hiring, to enter into a contract that designates the worker an independent contractor. (Dynamex, 4 Cal.5th at 962.)
To validly classify someone as an independent contractor under California law, the company must prove that the worker’s job functions fall outside the company’s core business. For example, a company that primarily does delivery or transportation must classify its drivers as “employees.”
The “ABC test” is the most favorable test for independent contractors trying to prove that they are entitled to “employee” status. In 2019, the California legislature passed Assembly Bill 5 (AB5) which codified the California Supreme Court decision.
The new law, which went into effect on January 1, 2020, essentially codified the California Supreme Court decision to adopt the “ABC test” for determining whether someone is a properly classified independent contractor.
(Dynamex, 4 Cal.5th at 963.) The hiring entity cannot unilaterally determine a worker’s status simply by assigning the worker the label “independent contractor” or by requiring the worker, as a condition of hiring, to enter into a contract that designates the worker an independent contractor. (Dynamex, 4 Cal.5th at 962.)