Empowering Your Business to Succeed & Thrive
We advise businesses to ensure compliance with California law and provide vigorous, expert defense in employment lawsuits.
Independent Contractors and AB5
Serving Businesses Throughout Southern California
To protect your business, correctly classifying your worker as an independent contractor has become increasingly important. In the past, California law used to weigh several different factors when determining a worker as an employee or an independent contractor. These factors were mostly focused on the degree of control the employer had over how the work was performed.
But the new rules set in 2018 have restricted the classification, limiting the number of employees who could lawfully be considered independent contractors. Under Assembly Bill 5 (AB5), companies must demonstrate that their contractors have a separate business and that the business is of a different type than the company’s usual line of work to categorize them as independent contractors.
What Our Clients Say
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“Absolute Pros. Cynthia and Emily helped navigate me through one of the most important business transactions of my life. They helped me clearly understand my ownership contract and ensure I made the right decision. Their services are worth every penny. The best attorneys I’ve hired.”- Dan E.
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“Cynthia and her team nailed it! We had a very specific, urgent employment issue, and Cynthia came recommended to me from a close friend. Her team was quick, effective, and professional all the way through and helped us close it out cleanly. Thank you!”- Nick F.
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“Cynthia is an exceptional law firm leader. She is highly capable, strategic, and thoughtful. Cindy is also a natural connector an oracle of local bar resources & knowledge, trusted by clients and fellow professionals alike to navigate them to what they need, both within and beyond her firm.”- Lauren P.
The ABC Test
AB5 codifies the California Supreme Court’s landmark decision in Dynamex Operations West v. Superior Court, 4 Cal. 5th 903 (2018), establishing the ABC test as the primary way to classify workers as independent contractors.
The foundation of the ABC test stands on the presumption that all workers are employees unless proven otherwise. The burden is therefore on the hiring company to prove that they have properly classified their workers as independent contractors. To prove an independent contractor relationship, the hirer must meet all three prongs of the new “ABC test”:
- Factor “A”: To be an independent contractor, the worker must be free from the hirer’s “control and direction.”
- Factor “B”: To be an independent contractor, the worker must also perform work “that is outside the usual course of the hiring entity’s business.”
- Factor “C”: To be an independent contractor, the worker must ordinarily work in the trade for which the hiring company is seeking his or her services.
If your company hires independent contractors and want to make sure your agreements comply with the latest California laws, our experienced employment attorneys can craft an agreement tailored to the needs of your business.
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Proactive CounselWe don’t just react to problems, we help prevent them by learning your business, reviewing contracts, and advising on day-to-day employment decisions.
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Woman-Owned Firm with Personalized ServiceAs a certified WBE and WOSB, we deliver responsive, flexible support with options for in-person, virtual, or phone consultations tailored to busy business owners.
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75+ Years of Combined ExperienceThe firm brings deep litigation and counseling experience that clients can trust in high-stakes situations.
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Boutique Employment Defense ExpertiseWe focus exclusively on protecting business owners in employment law, offering highly specialized knowledge.
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Every Case Prepared for TrialFrom beginning to end, we always help our clients prepare to win.
