Independent contractor vs employee | VK Consulting LLC
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On April 30, 2018 the California supreme court made a ruling establishing a distinction between independent contractors and employees. As a part of its decision, the court instituted the “ABC test” for California that will make it nearly impossible to classify a worker as an independent contractors.  In order to classify worker as an independent contractor, business entity must prove each of the following:
A. That the worker is free from the control and direction of the hiring entity in regards with the performance of the work
B. The worker performs work that is outside the usual course of the business entity’s business
C. That the worker is customarily engaged in an independently established trade, occupation, or business.
Giving these requirements, it will nearly impossible to legally classify workers as independent contractors.