On May 24th the California Assembly introduced AB-5 Worker Status: Employees and Independent Contractors. If passed this law will require employers to convert to regular employee status those independent contractors delivering services at their place of business. How should you determine if you are an independent contractor? Currently, the DOL uses six-factor criteria better known as the “economic realities test”. Under AB-5, California test requires “hiring entities” to establish: (A) that the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact, (B) that the worker performs work that is outside the usual course of the hiring entity’s business, and (C) that the worker is customarily engaged in an independently established trade, occupation, or business. Only when all three elements of the ABC test are met may a company properly classify its workers as independent contractors.