A freelance electrician works for multiple contractors, owns their tools, sets their own schedule, and operates under their own business license. However, they work primarily in electrical installation, which is part of the hiring contractor's core business. Under AB5, this worker is:
Correct Answer
A) Likely an employee unless an exemption applies
While the worker meets parts A and C of the ABC test, they fail part B because electrical work is part of a contractor's usual course of business. However, certain construction trade exemptions may apply under AB5.
Why This Is the Correct Answer
Even though the electrician meets prong A (sets own schedule = free from control) and prong C (own business license = independently established trade), the worker likely fails prong B because electrical installation is part of the hiring contractor's usual course of business. Failing any single prong means the worker cannot be classified as an independent contractor under AB5 — making them an employee by default, unless a specific statutory exemption applies (e.g., a construction trade exemption under Labor Code §2750.3).
Why the Other Options Are Wrong
Option B: Classification depends on the contract terms
Classification under AB5 is not determined by contract terms. The ABC test is a legal standard that overrides contractual labels. A contractor cannot simply designate a worker as independent in a contract and have that classification hold up under AB5.
Option C: Clearly an independent contractor
The worker is not clearly an independent contractor because they fail prong B. All three prongs of the ABC test must be satisfied simultaneously. Owning tools and holding a business license alone is insufficient if the work falls within the hiring entity's core business.
Option D: Clearly an employee
While the worker is likely an employee due to failing prong B, the answer is not 'clearly' an employee because a construction trade exemption may apply. The correct answer acknowledges this nuance — likely an employee unless an exemption saves the classification.
Memory Technique
The ABC test is a chain — break one link and the whole thing fails. Prong B is the hardest for construction trades to satisfy because the hiring contractor's business IS construction. If they do the same type of work, prong B fails.
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