Find out if your contractor should actually be an employee. Takes 30 seconds.
California uses the ABC test to determine worker classification. A worker is an employee unless all three parts are met:
If a worker fails any one of these, they usually need to be classified as an employee.
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Not sure if your contractor is actually an employee? In California, the rules are stricter than most people expect. Many businesses hire workers as independent contractors without realizing those workers may legally qualify as employees under state law.
Since AB5 took effect, California uses a strict standard called the ABC test to determine how a worker should be classified. Unlike the older, more flexible tests, the ABC test presumes every worker is an employee — unless the hiring entity can prove all three requirements are met.
This matters because misclassifying a worker — even unintentionally — can lead to back pay obligations, payroll tax liabilities, penalties, and potential legal exposure. Many businesses don't realize they're at risk until an audit or a worker files a claim.
If you're wondering how to tell if a contractor is actually an employee, the simplest starting point is this quick check. It walks you through the key factors California considers, so you can get a clearer picture in under a minute.
Here are some common signs that a worker may not qualify as an independent contractor under California law:
If any of these apply, there's a good chance the worker may need to be classified as an employee under California law.
This page helps you understand contractor vs employee classification in California and quickly check your specific situation.