California Supreme Court has made it harder for business to treat workers as Independent Contractors
Recently adopting the ABC test for Independent Contractors, California now presumes workers are employees unless they meet all the requirements of the conditions outlined below.
Here are the A, B, C’s:
A The worker must clearly be free from the hiring entity’s direction for the work in both the terms of the contract and in the conduct of the relationship.
B The worker does work that is outside the hiring entity’s usual business, for example, in a California case, truck drivers working for a trucking company. Truck driving was not outside the scope of the hiring companies business, so the drivers are considered employees. A plumber doing work at a real estate office is outside the hiring companies business, so they are an independent contractor.
C The Worker must be customarily engaged in an independently established trade, occupation or business of the same nature as the work being performed for the hiring company.