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Writer's pictureManuel Parada

Did you break the law by hiring a contractor?

AB 5 is a law in California that was signed in 2019 that codifies a 2018 California Supreme Court ruling that sets the rules for defining who is an independent contractor, and who is an employer’s employee. The law is designed to provide workers more employment protections and requires employers to meet certain conditions that prove an individual is an independent contractor and not an employee. This includes passing an "ABC Test" that requires companies to demonstrate that an individual is free from their control, performs a job that is outside their usual business, and is independently established in their trade or field of work.

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