Independent Contractor

HRCalifornia

This section explains the difference between an independent contractor and an employee. The courts and government agencies use different tests to determine independent contractor status. Calling someone an “independent contractor,” even if the worker prefers to be one, does not make them an independent contractor in the legal sense. Read about recent updates.

Dynamex and the “ABC Test”

California uses a three-part “ABC test” as the general test for independent contractors for purposes of applying the Labor and Unemployment Insurance Codes, a test adopted and codified from the California Supreme Court decision Dynamex Operations West, Inc v. Superior Court of Los Angeles, 4 Cal. 5th 903 (2018) ( Dynamex ). While the ABC test is the general rule in most circumstances, there are several exceptions under which a different test will apply.1

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