How may employers misclassify workers as independent contractors?

California’s Assembly Bill No. 5 passed in September of 2019. The bill established the ABC test to determine whether independent contractors classify as employees. If you believe an employer misclassified your position, you may file a lawsuit for relief. You could apply the ABC test to support your complaint.

The California Department of Industrial Relations notes how employers may pass the ABC test. The test describes three conditions. Companies must meet these conditions when hiring independent contractors. If your job fails to meet all three conditions, your employer may have violated the law by misclassifying you as an independent contractor.

Part A and Part B of the ABC test

Part A of the ABC test requires companies to not place restrictions on independent contractors in the same way they control employees. Hiring independent contractors mean giving them the freedom to perform their work without directions from a supervisor. If someone guides your work performance, your employer may have misclassified you.

Part B of the ABC test requires employers to hire independent contractors to perform tasks outside of a company’s regular business activities. If your employer has employees who perform the same tasks as you, a judge may consider you an employee instead of an independent contractor.

Part C of the ABC test and filing a lawsuit for relief

Part C of the ABC test requires giving independent contractors the freedom to work for other companies or for their own clients. Hiring independent contractors prohibits an employer from asking them to perform work exclusively for one company.

You may file a legal action against an employer that misclassifies your position as an independent contractor. If the court finds that you qualify as an employee, a judge may award you relief which could include unpaid wages and overtime.