AB5 was in response to the Dynamex ruling, which threw out the Borello test used to determine whether workers are employees or contractors. The California Supre

AB5 was in response to the Dynamex ruling, which threw out the Borello test used to determine whether workers are employees or contractors. The California Supreme Court created a new standard that all workers are presumed to be employees and the burden is on the employer to prove workers are contractors under the ABC test. If AB5 didn't pass, the vast majority of workers would be considered employees. All of the following conditions must be met in order for the worker to be classified as a contractor. (A) that the worker 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; (B) that the worker performs work that is outside the usual course of the hiring entity’s business; and (C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.