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Classifying workers as independent contractors under law

New website provides employer FAQ

Employers in California can now visit a single website to help them understand their requirements under a new law that further restricts their ability to classify their workers as independent contractors.

Assembly Bill 5 (Gonzales, D-San Diego) took effect Jan. 1 and, as CDA previously reported, the bill requires that employers apply the more stringent “ABC test” when determining if their workers are employees or independent contractors — with some exceptions.   

Launched late last year by the California Labor & Workforce Development Agency, the website provides employer-specific resources and FAQ summarizing AB 5 and the ABC test and how and when the test is applied, how the “more predictable” ABC test compares with the multifactor Borello test, penalties for misclassifying workers as independent contractors and more. The website also provides resources to help workers understand how the law may impact them.

Get answers to questions about AB 5 and the required ABC test.

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