Under AB 5 (Assembly Bill 5), which factor is NOT part of the ABC test for determining independent contractor status in California?
Correct Answer
B) The worker has a college degree or professional certification
The ABC test consists of three prongs: (A) freedom from control, (B) work outside usual business course, and (C) independently established business. Educational credentials are not part of the test.
Why This Is the Correct Answer
The ABC test enacted by AB 5 has exactly three prongs: (A) the worker is free from the company's control and direction; (B) the work is outside the usual course of the hiring entity's business; and (C) the worker is engaged in an independently established trade or business. Educational credentials — college degrees or professional certifications — are nowhere in the statute and play no role in the worker classification determination.
Why the Other Options Are Wrong
Option A: The worker is customarily engaged in an independently established trade or business
This IS prong C of the ABC test: the worker must be 'customarily engaged in an independently established trade, occupation, or business.' It is a genuine element, so it cannot be the answer to 'which is NOT part of the test.'
Option C: The worker is free from control and direction of the hiring entity
This IS prong A of the ABC test: the worker must be 'free from the control and direction of the hiring entity in connection with the performance of the work.' It is a genuine element and cannot be the correct answer.
Option D: The worker performs work outside the usual course of the hiring entity's business
This IS prong B of the ABC test: the work must be 'outside the usual course of the hiring entity's business.' It is a genuine element and cannot be the correct answer.
Memory Technique
ABC = Always remember the three prongs: A = Autonomy (free from control), B = Business distinction (work is outside the company's usual business), C = Career independence (worker has their own established business). No letter stands for 'credentials' or 'certifications.'
More ca-business-org 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 · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass