AB5 is a California law, in effect as of January 2020, that makes it harder for companies to classify their workers as independent contractors (as opposed to employees). Under this law, to hire a worker as an independent contractor, businesses must prove that the worker (a) is free from the company’s control; (b) is doing work that isn’t central to the company’s business; and (c) has an independent business in that industry. If a worker doesn’t meet all three of these conditions (the so-called ‘ABC Test’), then he/she must be classified as an employee.
#2 - AB5
#2 - AB5
#2 - AB5
AB5 is a California law, in effect as of January 2020, that makes it harder for companies to classify their workers as independent contractors (as opposed to employees). Under this law, to hire a worker as an independent contractor, businesses must prove that the worker (a) is free from the company’s control; (b) is doing work that isn’t central to the company’s business; and (c) has an independent business in that industry. If a worker doesn’t meet all three of these conditions (the so-called ‘ABC Test’), then he/she must be classified as an employee.