THE NEW ABC TEST FOR INDEPENDENT CONTRACTORS SPELLS SERIOUS TROUBLE FOR CALIFORNIA BUSINESSES

In a much-anticipated decision, the California Supreme Court on April 30, 2018, held that there is a presumption that all workers are employees, and that a business classifying a worker as an independent contractor bears the burden of establishing that such a classification is proper under a new test called the “ABC test.” Given the increasing prevalence of so-called “gig economy” workers in the state, this decision could potentially impact a wide variety of companies and contractors throughout California.

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