CSLB Law & Business ExamEmployment RequirementsMedium
A tile setter maintains his own contractor's license, advertises his tile-setting services to the public, and regularly performs work for several different general contractors simultaneously. Which prong of the ABC test does this evidence most directly support?
- ANone of the prongs, since licensing is irrelevant to worker classification
- BProng C – customarily engaged in an independently established trade, occupation, or business
- CProng A – freedom from control and direction
- DProng B – work outside the usual course of the hiring entity's business
Show answer & explanationAnswer & explanation
Correct answer: B. Prong C – customarily engaged in an independently established trade, occupation, or business
Prong C requires the worker to be customarily engaged in an independently established trade of the same nature as the work performed. Holding an active license, advertising to the public, and serving multiple clients are strong indicators of an independent business under Prong C.
Why the other options are wrong
- A. Licensing and independent business activity are central, not irrelevant, to Prong C analysis.
- C. Prong A concerns control over how the work is done, not the worker's independent business presence.
- D. Prong B looks at whether the work is within the hirer's usual business, unrelated to advertising or multiple clients.
ABC Test – Prong C
Prong C requires that the worker be customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.
- Evidence includes business licenses, advertising, and multiple clients.
- A worker who exclusively works for one hiring entity typically fails Prong C.
- All three ABC prongs must be satisfied for independent contractor status.
Memory trick: C is for 'Company of your own' — do they run a real business?