When working in California, you may fall under one of two worker classifications. One is the independent contractor (also known as the “1099 worker”) category and the other is the traditional employee category. Your worker classification can affect wages, overtime, meal breaks and other protections. So, if your boss does not classify you correctly, you may not be receiving all your rightful benefits.
Even if your employer claims you are an “independent contractor,” it does not automatically make it true. Many employers avoid paying benefits by calling their workers independent contractors, even when they are actually employees. However, the ABC test may help you determine what your lawful classification is.
What is the ABC test?
Under California Assembly Bill 5, the state established the ABC test as one standard used to check worker classifications. A hiring company must prove you fulfill three conditions to classify you as an independent contractor.
Unless you are under one of the explicit industry and professional exemptions under the law, the ABC test can determine whether you are an employee. Here are the criteria that identify independent contractors:
- A. Autonomy and control: You are free from the hiring company’s control and direction when it comes to how you do your work
- B. Business type: You perform work that is outside the scope of the company’s business (ex. Providing plumbing services for a restaurant)
- C. Customary independent trade: You have an established independent trade or business with the same type of work.
An employer cannot merely fulfill one or two criteria. If they cannot prove you meet all three conditions, you are likely not an independent contractor. However, check if your situation falls under statutory exemptions, as you may need an evaluation under the Borello test.
How worker classification affects you
Job misclassification is not just a clerical error, it can have direct impact on your wages and daily work life. An employee has specific benefits that hiring companies must provide under state law. Here are a few examples of your entitlements if you are an employee instead of an independent contractor:
- Minimum wage. Independent contractors are not subject to minimum wage laws. However, California employees have a statewide baseline minimum wage ($16.90/hour in 2026), with higher rates mandated by state law or local ordinances.
- Overtime pay. Employees in California must earn 1.5x their regular rate for work performed over 8 hours/day or 40 hours/week. If your work goes over 12 hours/day or over 8 hours on the 7th consecutive day, you earn 2x.
- Meal breaks and rest periods. California has some of the strictest break laws in the country. Failing to provide you with these breaks entitles you to additional pay for each workday the violation occurred.
If you believe your boss may have misclassified you, you may be able to recover lost benefits. Your employer may owe you “back pay” for unpaid overtime, missed breaks and even reimbursement for business expenses. The California Labor Commissioner’s Office allows workers to file wage claims to recover these funds.
Taking action
Because of the complexity of labor laws, you may want to consult a legal professional to ensure your rights remain protected. In California, the ABC test is the gold standard that distinguishes between exploitation and just pay.