Which California code section specifically addresses the ABC test for determining independent contractor status under AB5?
Correct Answer
A) Labor Code Section 2750.3
Labor Code Section 2750.3 was added by AB5 and establishes the ABC test for determining whether a worker is an employee or independent contractor in California.
Why This Is the Correct Answer
Labor Code Section 2750.3 is correct. AB5 (Assembly Bill 5), enacted in 2019, added Section 2750.3 to the California Labor Code. This section codified the ABC test established by the California Supreme Court in Dynamex Operations West v. Superior Court, creating a presumption that workers are employees unless the hiring entity satisfies all three prongs of the ABC test.
Why the Other Options Are Wrong
Option B: Business and Professions Code Section 7058
Business and Professions Code Section 7058 is wrong. BPC 7058 relates to contractor licensing classifications and specialty contractor requirements under the CSLB, not to worker classification under AB5.
Option C: Revenue and Taxation Code Section 13020
Revenue and Taxation Code Section 13020 is wrong. This section pertains to income tax withholding requirements, not to the determination of worker classification or independent contractor status.
Option D: Labor Code Section 3351
Labor Code Section 3351 is wrong. LC 3351 defines 'employee' for purposes of workers' compensation law, providing a general definitional framework. It predates AB5 and does not codify the ABC test.
Memory Technique
2750.3 → AB5's Three-prong ABC test. The '3' in 2750.3 reminds you of the three prongs: (A) free from control, (B) outside usual business, (C) customarily established trade.
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A contractor hired a tile installer who brings his own tools, works on multiple projects for different contractors, has his own business insurance, and invoices for completed work. However, the contractor directs the specific installation methods and daily schedule. Under AB5, this worker is most likely classified as: