Can I hire independent contractors to work for me in California?

Can I hire independent contractors to work for me in California?

When it comes to hiring workers as independent contractors (aka “1099 workers”), California employers must proceed with caution.  Since Governor Newsom signed Assembly Bill 5 (“AB 5”) into law on September 4, 2020, the very concept of an independent contractor has fundamentally changed.  That law created an initial presumption that a worker in California is an employee unless the employer can satisfy a three-pronged test, the “ABC Test”, including the now-infamous prong B, by showing that the worker performs work that is outside the usual course of the hiring entity’s business.  The consequence of AB 5 is that, unless an exemption applies, the only workers who will be considered independent contractors are more akin to subcontractors who perform work that is not like work performed by employees in the business.

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