EstatePass
law-businessBusiness Organization & Employer ObligationsMEDIUM

Under California's AB5 legislation and the Dynamex decision, which factor is NOT part of the ABC test for determining independent contractor status in the construction industry?

Correct Answer

D) The worker has been employed by the same entity for less than 180 days

The ABC test established by Dynamex and codified in AB5 has three prongs: (A) freedom from control, (B) work outside usual business course, and (C) independently established trade/business. Duration of employment is not a factor in the ABC test, though construction workers may qualify for certain exemptions under specific conditions outlined in Labor Code Section 2750.3.

Answer Options
A
The worker is free from control and direction of the hiring entity
B
The worker is customarily engaged in an independently established trade or business
C
The worker performs work outside the usual course of the hiring entity's business
D
The worker has been employed by the same entity for less than 180 days

Why This Is the Correct Answer

Option D is correct because employment duration is not part of the ABC test for independent contractor classification. The ABC test under California's AB5 and Dynamex decision consists of only three specific criteria: freedom from control and direction, work outside the hiring entity's usual business course, and engagement in an independently established trade or business. The 180-day employment period mentioned in option D relates to different labor law provisions, not the ABC test itself.

Why the Other Options Are Wrong

Option B: The worker is customarily engaged in an independently established trade or business

Option C is incorrect because being customarily engaged in an independently established trade or business is the 'C' prong of the ABC test. This factor determines whether the worker has their own established business in the same field, making it a core element of the test.

Option C: The worker performs work outside the usual course of the hiring entity's business

Option A is incorrect because freedom from control and direction is actually the 'A' prong of the ABC test. This factor examines whether the worker operates independently without the hiring entity's control over how the work is performed, making it a fundamental component of independent contractor determination.

Memory Technique

Remember 'ABC' - Always Be Careful: (A) Autonomous control, (B) Business outside normal scope, (C) Customarily independent trade. Duration doesn't start with A, B, or C!

Was this explanation helpful?

More law-business Questions

Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?

Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?

According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?

Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?

According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?

Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?

Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?

Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?

According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?

A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing