ABC test

A rule of law that allows employers not to provide unemployment compensation to independent contractors. The test for whether an individual is an independent contractor as opposed to an employee is threefold: 1) does the individual work independently of the employer’s control (A = alone); 2) does the individual maintain his own place of business (B = business); and 3) does the individual practice or work at an established trade, and exercise control over his own schedule and method of operation (C = control)? The name derives from the letters normally used to designate the three parts of the test. See contractor.