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A contractor hired a tile installer who brings his own tools, works on multiple projects for different contractors, has his own business insurance, and invoices for completed work. However, the contractor directs the specific installation methods and daily schedule. Under AB5, this worker is most likely classified as:

Correct Answer

C) Employee due to control over work methods and schedule

Under the ABC test's 'A' prong, control over how and when work is performed indicates employee status, regardless of other independent contractor characteristics.

Answer Options
A
Independent contractor due to having own tools and insurance
B
Independent contractor if the work duration is under 30 days
C
Employee due to control over work methods and schedule
D
Employee only if working more than 20 hours per week

Why This Is the Correct Answer

Option C is correct because under California's AB5 law, the ABC test requires that to be an independent contractor, the worker must be (A) free from control over how and when work is performed, (B) performing work outside the usual course of the hiring entity's business, and (C) engaged in an independently established trade. Here, the contractor directs installation methods and daily schedule, failing prong A. Regardless of other independent contractor traits (own tools, insurance, invoicing), failing even one prong of the ABC test means the worker is classified as an employee.

Why the Other Options Are Wrong

Option A: Independent contractor due to having own tools and insurance

Incorrect. Having one's own tools and insurance are relevant factors under older multi-factor tests, but AB5's ABC test is more stringent. Failing any single prong β€” especially prong A regarding control β€” results in employee classification. Tools and insurance do not override the control element.

Option B: Independent contractor if the work duration is under 30 days

Incorrect. The duration of work (under 30 days) is not a criterion under AB5's ABC test. There is no such duration-based exemption in AB5. Classification depends on meeting all three prongs of the ABC test, not on how long the work lasts.

Option D: Employee only if working more than 20 hours per week

Incorrect. The number of hours worked per week is not a factor in AB5's ABC test. Employee status is not contingent on working more than 20 hours per week. The control over work methods and schedule alone triggers employee classification under prong A.

Memory Technique

Remember ABC = Always Be Checking all three prongs. A = free from control, B = outside usual business, C = independent trade. If the contractor tells you HOW and WHEN to work, you fail prong A and you're an employee β€” no matter what else.

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