ABC Construction, a California LLC, hired a plumber for a residential project. The plumber uses his own tools, sets his own schedule, works for multiple contractors, and has his own business license. Under AB5, this arrangement most likely indicates:
Correct Answer
C) The plumber is likely an independent contractor
The facts suggest the plumber meets all three prongs of the ABC test: freedom from control, work outside usual business course, and independently established business.
Why This Is the Correct Answer
California's AB5 codified the ABC test for worker classification. All three prongs point to independent contractor status: (A) the plumber is free from ABC Construction's control and direction; (B) plumbing is outside ABC Construction's usual course of business (they are a general contractor, not a plumbing company); and (C) the plumber has an independently established plumbing trade with his own license and multiple clients. Meeting all three prongs = independent contractor.
Why the Other Options Are Wrong
Option A: The classification depends on the project duration
Project duration is not one of the three prongs of the ABC test under AB5. Whether the engagement lasts one day or six months does not determine classification. The ABC test looks at control, business type, and independent establishment — not duration.
Option B: The plumber must be reclassified after 30 days
There is no 30-day reclassification rule under AB5 or any California employment law. This is a fabricated threshold with no legal basis. Classification is determined by the nature of the working relationship, not a time trigger.
Option D: The plumber is definitely an employee
The plumber is not 'definitely' an employee. The facts clearly satisfy all three prongs of the ABC test, making independent contractor status the correct classification. The word 'definitely' in option D should also be a red flag — AB5 determinations are fact-specific, but here the facts strongly favor independent contractor status.
Memory Technique
Remember the ABC Test: A = free from control (sets own schedule, own tools), B = work is outside the hiring company's usual Business (plumber hired by a general contractor, not a plumbing company), C = independently established trade (own business license, multiple clients). All three A, B, C = independent Contractor.
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