California's AB5 law relies on three questions, originally written in the 1930s, to determine the legality of an independent contractor. Those questions are the basis for proposed legislation that could have a profound effect on the gig economy.
A.)The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and
B.) The person performs work that is outside the usual course of the hiring entity’s business; and
C.) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.