XYZ Contracting hires a tile installer who works exclusively for them, uses company tools, follows company schedules, and receives training. Under AB5, this worker would most likely be classified as:
Correct Answer
C) Employee due to failing the ABC test
The worker fails prong (A) of the ABC test due to company control over schedule and training, and likely fails prong (B) since tiling is within the usual course of a contracting business. This would classify them as an employee.
Why This Is the Correct Answer
This worker fails multiple prongs of the ABC test. Prong A fails because XYZ controls the schedule and provides training (indicating direction and control). Prong B likely fails because tile installation is within the usual course of a contracting company's business. Prong C fails because the worker works exclusively for XYZ and is not independently established. Failing any prong requires employee classification.
Why the Other Options Are Wrong
Option A: Employee only if earning less than minimum wage
Employee classification under AB5 is determined by the ABC test, not by wage level. A worker earning above minimum wage is just as subject to AB5's classification rules as one earning less. Wage amount is irrelevant to the ABC test analysis.
Option B: Independent contractor due to specialized skills
Specialized skills do not create an exception to AB5. While some industries have specific exemptions (e.g., licensed professionals), tile installation does not have a blanket exemption based on skill level alone. All three prongs of the ABC test must still be satisfied.
Option D: Independent contractor under the construction exemption
There is no general 'construction exemption' under AB5 that automatically makes construction workers independent contractors. Some limited exemptions exist for specific subcontracting arrangements, but they require the worker to have their own contractor's license, set their own rates, and work for multiple clients — none of which apply here.
Memory Technique
Apply the 'all three locks' rule: the ABC test has three locks, and the worker needs keys to all three to be an IC. Here: A-lock (control) — employer has the key (fail); B-lock (outside usual business) — tile is inside a contractor's usual work (fail); C-lock (independent trade) — works only for one company (fail). No keys = employee.
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