Legal, Elevated

ABC Test C

INDEPENDENT CONTRACTOR
ASSESSMENT TOOL

 


Passing the A.B.C. Test

All three questions of the A.B.C. test must be answered with a "yes" for a worker to be considered an independent contractor. The 3rd question is below:

 
 

C. does the worker have an independently established business that is similar to the work performed for your Company?

  • The worker must have already established a business before entering into contract with your company and must continue to run that business for the benefit of other clients.

  • The worker’s business must also be performing the same or similar work as the work the worker is performing for your company.

  • Below are factors that show that a worker has an independent business:

    • The worker’s business is formed as a legal entity, such as a corporation, LLC, or partnership.

    • The worker has the appropriate and required licenses and permits to operate such a business, such as having a business license.

    • The worker is advertising its work to the public and the advertised work is similar to the work being performed for your company.

    • The worker is routinely providing or offering to provide its work to current or potential customers.