When Assembly Bill 5 (AB 5) went into effect January 1, 2020, it significantly altered the way California law distinguished between employees and independent contractors, making the "ABC test" the general rule in most circumstances, but also creating several exceptions for various industries and professions, under which the common law classification test applies.
California further modified the law with AB 2257, an urgency measure that went into effect when it was signed in September 2020.
AB 2257 didn’t change the basic framework established by AB 5, but it revised and clarified existing provisions and created additional industry exceptions to the ABC test.
Given the complexity of the independent contractor landscape in California, and the potential liability when workers are misclassified, it's important for employers to understand both the ABC test and the common law standard and when each applies.
Download CalChamber's free A Roadmap to California’s Worker Classification Law white paper to better understand the independent contractor classification and help you comply with this California law.
Updated December 12, 2024
