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Topics: Small Business Advice
In addition to the federal rules, a handful of states, such as California, Florida, Illinois, Massachusetts and New York, have specific qualifying tests to determine if a worker can be classified as an independent contractor or an employee. California’s AB5 law has the most stringent definition of an independent contractor. AB5, California’s gig worker law, went into effect on January 1, 2020. Based on the California Supreme Court Dynamex decision, the legislation uses the ABC test to classify an employee versus an independent contractor. A worker is considered an independent contractor if they meet all three of the following conditions:
Learn more about the top mistakes businesses make when hiring temporary staff for the busy holiday season, and get tips to ensure your small business can avoid them.