Skip to content
Oakclause

Independent Contractor Test in California

California uses the ABC test for both the Labor Code and wage orders and for unemployment insurance, with listed exemptions that fall back to the Borello test.

Last checked . General information, not legal advice.

California at a glance

Test for wage and hour law
ABC test
Labor Code 2775 sets the test; listed exceptions apply, and where a court holds the ABC test cannot apply in a context, the Borello test governs.
ABC test for wage law
Yes
Test for unemployment insurance
ABC test
Free from control, work outside the usual course of business, independent trade
ABC test for unemployment
Yes

Sources

Last checked

The rules in California

Which test does California use to classify independent contractors under its wage and hour laws?

Test for wage and hour law in California: ABC test. Labor Code 2775 sets the test; listed exceptions apply, and where a court holds the ABC test cannot apply in a context, the Borello test governs.

Does California apply the ABC test under its wage and hour laws?

Yes. ABC test for wage law in California: yes.

Which test does California use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in California: ABC test. Free from control, work outside the usual course of business, independent trade.

Does California apply the ABC test for unemployment insurance?

Yes. ABC test for unemployment in California: yes.

Where do the California independent contractor tests come from?

The rules above come from Cal. Lab. Code 2775 and Cal. Unemp. Ins. Code 621(b). Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.