ABC test for worker classification

The ABC test is a legal framework used in a number of US states to determine whether a worker is an employee or an independent contractor. Under the test, a worker is presumed to be an employee unless the hiring entity proves all three prongs: freedom from control, work outside the usual course of business, and an independently established trade.\n\nThe test is stricter than the multi-factor common-law analysis used at the federal level and by many other states. A misclassification finding is expensive under co-employment because both PEO and client can share liability. See non-subscriber for the Texas workers'-comp adjacency, EOR for how classification questions differ across borders, and the co-employment relationship explained for the doctrine amplifying the exposure. The PEO Signal help and PEO state pages collect state-level applications.\n\n## What this doesn't cover\n\nThis entry describes the general ABC framework; individual states apply it with jurisdictional variations, and a specific classification question should be resolved with counsel referencing the applicable state statute and case law.