ABC test

Definition

A test used in some states to determine whether a person is an employee or an independent contractor for the purpose of determining state unemployment tax.  

Some courts using this test look at whether a worker meets three separate criteria to be considered an independent contractor:

1) The worker is free from the employer's control or direction in performing the work.
2) The work takes place outside the usual course of the business of the company and off the site of the business.
3) Customarily, the worker is engaged in an independent trade, occupation, profession, or business.

 

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