In “Independent-Contractor Classifications May Need to Be Reviewed,” labor and employment partner Andrew Murphy spoke to The Society for Human Resource Management (SHRM) about properly classifying workers using the ABC Test.
The publication explained how three factors must be met for the ABC test:
A. The worker is free from the control and direction of the hiring entity in connection with the performance of the work (absence of control).
B. The worker performs tasks that are outside the usual course of the hiring entity’s business (business of the worker).
C. The worker is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the hiring entity (customarily engaged).
“Of these three criteria, most of the focus is on the B prong, with litigants regularly disputing how broadly courts should interpret the usual course of the alleged employer’s business,” said Murphy. “If the B prong is interpreted broadly — and there is still much dispute over the issue — it can make it more difficult for companies in many industries, such as the transportation industry, to use independent contractors.”