Compliance Tools Library

ABC Test Checker

Apply the stricter state ABC test to see whether a worker is presumed an employee.

Reviewed by theComplianceToolsLibrary Editorial Team · Last updated

⚠ Disclaimer: This tool is for informational purposes only and does not constitute legal advice. Consult a qualified attorney or HR professional for guidance specific to your situation.
The three ABC prongs

Under the ABC test, a worker is presumed an employee unless the business proves all three prongs.

A — Is the worker free from the hiring business's control and direction in performing the work, in fact and under any contract?

B — Does the worker perform work that is outside the usual course of the hiring business?

C — Is the worker customarily engaged in an independently established trade, occupation, or business of the same nature?

Key facts

Default
The worker is presumed an employee unless all three prongs are met
Prong A
Free from the hiring entity's control and direction
Prong B
Performs work outside the usual course of the hiring entity's business
Prong C
Customarily engaged in an independently established trade or business

What is the ABC test?

The ABC test is a stricter worker-classification standard used by California (under Dynamex and AB5) and a number of other states for wage and other purposes. It flips the default: a worker is presumed to be an employee unless the hiring business proves all three of the "ABC" prongs.

The business must show that the worker is (A) free from its control and direction, (B) performing work outside the usual course of its business, and (C) customarily engaged in an independently established trade of the same nature. Prong B is often decisive — if the work is part of the company's core business, the worker is almost always an employee. Failing any one prong makes the worker an employee.

How to use this tool

  1. 1

    Answer prong A

    Is the worker free from the business's control over how the work is done?

  2. 2

    Answer prong B

    Is the work outside the usual course of the business?

  3. 3

    Answer prong C

    Is the worker running their own independent trade or business?

  4. 4

    Review the result

    See whether the worker is presumed an employee or may be a contractor under the ABC test.

Common mistakes to avoid

  • Treating a signed contractor agreement as decisive — the ABC test ignores labels.
  • Classifying core-business workers as contractors (prong B usually fails).
  • Applying the federal IRS test where a stricter state ABC test governs.
  • Assuming an LLC or a 1099 automatically satisfies prong C.

What to do next

  • If any prong fails, treat the worker as an employee for the governing law.
  • Apply the stricter of the federal and state tests.
  • Document your analysis for each contractor engagement.
  • Cross-check federal status with the Employee Classification Checker.

Sources

Frequently asked questions

What is the ABC test?

A state classification test that presumes a worker is an employee unless the business proves all three prongs — autonomy, work outside its usual business, and an independent trade.

Which states use the ABC test?

California and a number of other states use an ABC test for wage and/or unemployment purposes, with some variation in the prongs.

Which prong is hardest to meet?

Prong B — performing work outside the company's usual course of business — is often the decisive one.

Does a contract make someone an independent contractor under the ABC test?

No. Labels don't control; the business must prove all three prongs regardless of any contract.

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