Alternative to ABC independent contractor test is no safe haven
The California Employment Development Department assessed Vendor Surveillance Corporation $278,692 in unemployment insurance taxes after finding the company should have classified project specialists in 2011-2013 as employees rather than independent contractors.
VSC appealed, recently persuading the San Diego division of the court of appeal that AB 5’s strict ABC independent contractor test did not apply. But relief from the ABC test wasn’t enough.
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