What is the AB 5 ABC test?

Under California AB 5, the ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions:

• The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
  
  
• The worker performs work that is outside the usual course of the hiring entity’s business; and
  
  
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

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