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.
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.
More California Questions
A contractor is bidding on a public works project in Los Angeles County with a contract value of $2,000,000. The prevailing wage determination shows carpenter wages at $45.50 per hour. What additional amount must be paid for health and welfare benefits?
A construction company has 15 employees working on a project. One employee suffers a work-related injury. Under California law, what is the primary difference between Cal/OSHA and federal OSHA jurisdiction?
A contractor employs 8 workers and pays total wages of $480,000 annually. If the Unemployment Insurance (UI) tax rate is 3.4% on the first $7,000 of each employee's wages, what is the total annual UI tax owed?
Under Cal/OSHA regulations, what is required when a construction site has a trench excavation deeper than 5 feet?
A public works project requires certified payroll records. The prevailing wage for an electrician is $52.75 per hour with $18.50 in fringe benefits. If an electrician works 8 hours, what is the total prevailing wage obligation?
On a prevailing wage project, a carpenter's regular rate is $28/hour, but the prevailing wage is $35/hour with $8/hour in benefits. What must the contractor pay if the carpenter already receives $6/hour in benefits?
A California contractor has quarterly payroll of $85,000. What is the State Disability Insurance (SDI) withholding amount if the current SDI rate is 0.9% and the wage base limit is $153,164 annually?
Under California law, which statement about business entity liability is CORRECT?
XYZ Contracting LLC has 8 employees in California. An employee is injured on the job and requires medical treatment costing $15,000. The company has no workers' compensation insurance. What is XYZ's potential liability?
A general contractor subcontracts electrical work to an LLC. The electrician works exclusively for this contractor, uses the contractor's materials, and follows the contractor's daily schedule. Under AB5, this relationship is likely:
People Also Study
Business & Financial Management
120 questions Β· 70% to pass
Contract Administration
60 questions Β· 70% to pass
Project Management
60 questions Β· 70% to pass
Related Study Resources
Previous Question
Which California code section specifically addresses the ABC test for determining independent contractor status under AB5?
Next Question
A California contractor's monthly payroll is $85,000. If the Personal Income Tax (PIT) withholding averages 6.5% and the employer pays Unemployment Insurance (UI) at 3.4%, what are the total monthly tax obligations to EDD?
