Under the ABC test, which statement is true?

Under the ABC test, which statement is true?

• A. The worker is required to perform in the usual course of the hiring company's business.
• B. The worker is paid on an hourly wage.
• C. The worker must have a professional license.
• D. The worker is free from control and direction in the performance of services.

Answer: (D)

In the ABC test, the key factor for independent contractor status is that the worker is not controlled or directed by the hiring entity in how the work is done. This lack of control shows true independence in performing services, which is precisely what this statement describes. The other options describe characteristics that do not define independence under the test—being paid by the hour is not a determining factor, performing work inside the company’s ordinary business can indicate an employee relationship, and needing a professional license is not a requirement of the test. The ABC test examines control first; if the worker operates free from the employer’s direction, that supports classification as an independent contractor.

In the ABC test, the key factor for independent contractor status is that the worker is not controlled or directed by the hiring entity in how the work is done. This lack of control shows true independence in performing services, which is precisely what this statement describes. The other options describe characteristics that do not define independence under the test—being paid by the hour is not a determining factor, performing work inside the company’s ordinary business can indicate an employee relationship, and needing a professional license is not a requirement of the test. The ABC test examines control first; if the worker operates free from the employer’s direction, that supports classification as an independent contractor.