‘ABC Test’ for Independent Contractors Set to Take Effect in California Jan. 1

Mon, 01/06/2020 - 10:51

Through AB 5, the California legislature codified and expanded the reach of the so-called “ABC Test” for determining whether a worker should be classified as an independent contractor. This new law expands the reach of the California Supreme Court’s Dynamex decision which applied to coverage under the California Industrial Welfare Commission’s Wage Orders. AB 5 applies this new test to businesses under the California Labor Code and the California Unemployment Insurance Code. Currently, California businesses are subject to a variety of tests of employee status, depending upon the law in question. Under most federal and California laws, the common law agency test applies. For workers’ compensation laws, the California Supreme Court adopted an “economic realities” test 30 years ago in S.G. Borello & Sons v. Department of Industrial Relations.However, as of Jan. 1, 2020, the default standard for independent contractor treatment will be the ABC Test.Read more...https://www.natlawreview.com/article/abc-test-independent-contractors-set-to-take-effect-california-jan-1?utm_content=0ad35d3c75c3c6b14898d7f2fa8d30c1&utm_campaign=2020..1.2Whats%20Most%20Read%20on%20the%20National%20Law%20Review%20in%20Dec%202019&utm_source=Robly.com&utm_medium=email