According to California law, which test is primarily used to determine if a worker should be classified as an employee rather than an independent contractor?
Correct Answer
A) The ABC test established by Dynamex and codified in AB5
Assembly Bill 5 (AB5) codified the ABC test from the Dynamex decision, which presumes workers are employees unless the hiring entity can prove all three ABC criteria. This is the primary test for worker classification in California construction.
Why This Is the Correct Answer
Assembly Bill 5 (AB5), enacted in 2019, codified the ABC test from the California Supreme Court's Dynamex Operations West v. Superior Court decision. Under the ABC test, a worker is presumed to be an employee unless the hiring entity proves all three conditions: (A) the worker is free from the hiring entity's control, (B) the work is outside the usual course of the business, and (C) the worker is customarily engaged in an independently established trade. This is the primary and controlling test in California.
Why the Other Options Are Wrong
Option B: The right-to-control test from federal guidelines
The federal right-to-control test is used in federal law contexts but is not the primary test in California. California law, particularly after AB5, uses the stricter ABC test. The right-to-control test is more permissive and would classify fewer workers as employees.
Option C: The Borello multi-factor test for all industries
The Borello multi-factor test was California's previous primary standard for worker classification. While it still applies in certain industries exempted from AB5, it is no longer the general default test. Using Borello as your answer ignores the significant legal shift brought by AB5.
Option D: The IRS 20-factor test
The IRS 20-factor test is a federal tax classification tool, not a California state standard. It has no authority in California employment law and was not adopted by AB5 or the Dynamex decision.
Memory Technique
Remember 'ABC test = AB5 = Always Be Classifying as employees.' The three ABC factors are: A = free from control, B = outside business's usual work, C = independently established business. All three must be satisfied to classify someone as an independent contractor.
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