(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. (B) The person performs work that is outside the usual course of the hiring entity’s business.
#Abc california license lookup free#
(A) The person 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. To be considered an independent contractor, a worker must satisfy all three of the following criteria: The ABC test puts the burden on the employer to prove that a worker should not be classified as an employee. This means that those without an active in-state license are subject to the “ABC test.” Per the text of AB 5, the exemption applies toĪn individual who holds an active license from the State of California and is practicing one of the following recognized professions: lawyer, architect, engineer, private investigator, or accountant. But what many publications fail to mention is that the exemption only applies to accountants in practice holding an active license from the State of California.
The good news, which has been widely reported in the media, is that accountants have been granted an exemption from AB 5 (along with many other professions). It was designed to target app-based platforms such as Uber and Lyft, which employ armies of contractors, but has major implications for many other industries in California and beyond. This is the the anti-gig economy bill tightening up the rules about which workers may be classified as independent contractors versus employees.
The new law is Assembly Bill 5, which took effect January 1, 2020. There’s a new law in California that could affect how your firm does business - even if you’re located in a different state. Do you own an accounting or bookkeeping firm? Do you employ California residents as subcontractors to provide accounting services to your clients?
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