An Independent Contractor Agreement that COMPLIES with California AB5 is essential for any business hiring freelancers. Under AB5 (Labor Code §2775), misclassifying employees as contractors can cost you tens of thousands in penalties, back taxes, and overtime claims. Protect your business with a bilingual contract that follows the "ABC Test" — from $149.
Any California business that hires freelancers, consultants, or anyone as an independent contractor (1099). It is especially urgent for: businesses that pay over $600/year to a contractor (1099 required), marketing/design/tech companies hiring freelancers, restaurant/store owners using delivery drivers or temporary staff, real estate owners hiring handymen or cleaners. Without a written contract, the contractor can claim they were an employee — and California Labor Commission often agrees.
Under AB5 (effective 2020), a worker is presumptively EMPLOYEE unless the business proves ALL THREE criteria of the ABC Test: (A) the worker is free from business control over how they perform the work, (B) the work is OUTSIDE the hiring entity's usual course of business, and (C) the worker is customarily engaged in an established trade of the same nature. Without a written contract, almost impossible to prove these three. AB2257 (2020) created specific exemptions for 100+ professions — but you still need a written contract to invoke the exemption.
AB5 (Assembly Bill 5) fundamentally changed how California classifies workers. Before, it was easy to classify as contractor; now there is presumption of EMPLOYEE. If misclassified, you owe back: employer taxes, unemployment insurance, workers comp, overtime, accrued vacation. Penalties can exceed $25,000 per worker.
Maybe. AB2257 exempts professions like: attorneys, architects, engineers, doctors, accountants, real estate agents, commissioned salespeople, freelance photographers (with limit), freelance writers (with limit), marketing consultants. Verify with an employment attorney for your specific profession.
Not completely. The contract is fundamental EVIDENCE, but the court looks at the reality of the relationship. If you treat the "contractor" as an employee (fixed hours, direct supervision, equipment provided), the contract will not save you. But without a contract, you do not even have an argument.
Yes, but customize the Scope of Work for each one. A generic contract is less convincing than one specific to the contractor's task.
Only $149. A single AB5 fine can be $25,000+. This is cheap protection.
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