CSLB Law & Business ExamEmployment RequirementsMedium

A flooring company classifies an installer as an independent contractor. The installer performs flooring installation, which is exactly the type of work the company sells to its customers. Under the ABC test, which prong is most clearly failed?

  1. AProng A, regarding control and direction of the work
  2. BProng B, regarding work outside the usual course of business
  3. CNone of the prongs are relevant to this scenario
  4. DProng C, regarding an independently established trade
Show answer & explanation

Correct answer: B. Prong B, regarding work outside the usual course of business

Prong B requires that the worker perform work outside the usual course of the hiring entity's business; because flooring installation is the core business of the flooring company, this prong fails and the worker is presumed an employee.

Why the other options are wrong

  • A. Prong A concerns freedom from control, which isn't the focus of the facts given.
  • C. The ABC test is directly relevant since it governs worker classification in California.
  • D. Prong C concerns an independently established trade, a separate issue from the type of work performed.

ABC Test - Prong B

Under California's ABC test (Labor Code 2775), a worker is an employee unless the work performed is outside the usual course of the hiring entity's business.

  • All three prongs (A, B, C) must be satisfied for independent contractor status
  • Prong B fails when the worker does the same work the company sells
  • Established by Dynamex and codified in AB 5

Memory trick: Same trade, same fate — employee, not contractor.

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