What is the worker misclassification ABC test?
Type
Policy Brief or Report
Year
2021
Level
City or Town, County
State(s)
All States
Policy Areas
Democracy & Governance, Economic Justice
Worker misclassification results in the wrongful categorization of employees as independent contractors, depriving workers of benefits, equal protections, and fair compensation. Local governments can use the ABC test to determine if a worker is an employee or independent contractor based on three criteria: freedom from control by the hiring entity, performing work outside the entity's usual business, and being engaged in an independent trade or business.