AB 5 Employment Status

Assembly Bill (AB) 5 changes the criteria for how workers are determined to be either employees or independent contractors. AB 5 requires the application of the “ABC test” to make this determination. EDD’s AB 5 page provides an overview of the new law, with links to FAQs including:
  • What is the ABC test?
  • How do you apply the ABC test to worker relationships?
  • Do AB 5 and Labor Code section 2750.3 require use of the ABC test in all situations?
  • If a hiring entity has a worker sign an agreement stating that the worker is an independent contractor, does not make payroll deductions or withholdings for taxes or Social Security for the worker, and at the end of the year provides the worker with an IRS Form 1099 rather than a W-2, does this mean the worker is an independent contractor?