On April 30, 2018, the California Supreme Court sent shock waves through businesses using independent Contractors. The Court substantially narrowed the existing 30 year old rule for classifying workers as independent contractors under California wage-hour law. In Dynamex Operations West, Inc., the California Supreme Court adopted the “ABC test” which greatly restricts when a worker qualifies as an independent contractor.
Under the ABC test, it is presumed that all workers should be classified as employees. The hiring business can show that a worker qualifies as an independent contractor only if the business can show that the worker:
A) is free from the control and direction of the hiring business in connection with the performance of the work, both under the contract for the performance of the work and in fact; and