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✦ Certified Specialist in Workers’ Compensation Law — Certified by the State Bar of California, Board of Legal Specialization ✦
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By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization
In California, Labor Code §2775 codifies the Dynamex / AB 5 ABC test — a worker is presumed an employee unless the hirer proves all three of (A) freedom from control, (B) work outside the hirer's usual course of business, and (C) the worker is independently engaged in that trade. Yazdchi Law handles California misclassification claims statewide.
California Labor Code §2775 codifies the ABC test for California worker classification — the rule that decides whether a worker labeled "1099 independent contractor" is actually an employee entitled to workers' compensation coverage under California Labor Code §3351. Under §2775, a California worker providing labor or services for remuneration is presumed an employee unless the hiring entity proves ALL THREE of (A) freedom from control, (B) work outside the hirer's usual course of business, and (C) the worker is customarily engaged in an independently established trade.
Under California Labor Code §2775, the "A" prong requires the California hiring entity to prove the worker is free from the hirer's control and direction, both under the contract and in fact. Setting work hours, requiring specific methods, supervising the work, requiring exclusivity, or providing the tools and worksite all cut against the "A" prong. A California hiring entity that controls how the work is done — not just what result — fails §2775 "A" and the worker is an employee.
Under California Labor Code §2775, the "B" prong requires the California hiring entity to prove the worker's services are performed OUTSIDE the usual course of the hirer's business. A delivery driver for a delivery company is INSIDE the usual course — §2775 "B" fails and the worker is an employee. A plumber called to fix a leak at a software company is OUTSIDE the software company's usual course — §2775 "B" passes. The California "B" prong is often the hardest for gig-economy hirers to satisfy.
Under California Labor Code §2775, the "C" prong requires the California hiring entity to prove the worker is customarily engaged in an independently established trade of the same nature as the work performed. The worker must actually be running an independent business — separate clients, business registration, capital investment. A worker who works only for this one hiring entity fails the §2775 "C" prong and is an employee.
Under California Labor Code §2775 and California Labor Code §3351, a California worker correctly classified as an employee under the ABC test is automatically covered by workers' compensation — and California Labor Code §3351 extends coverage regardless of immigration status. A worker mislabeled "1099 contractor" who fails any one prong of §2775 is an employee for comp purposes, and the employer's California Labor Code §3700 insurance obligation applies.
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Tap to call →Last reviewed by Eman Yazdchi, Esq., May 2026.
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