ABC test

The ABC test is a strict way of deciding whether a worker is an employee or an independent contractor. It assumes the worker is an employee unless the business proves all three parts: (A) the worker is free from the company's control and direction, (B) the work is outside the company's usual business, and (C) the worker normally runs an independent business doing that kind of work. California adopted it under AB 5 for most Labor Code and unemployment purposes (checked October 3, 2026), and some other states use a version of it, often for unemployment insurance. Federal agencies use different tests, so results can differ.