AB5 (Gonzalez) establishes that persons working for a homeowners association or other business entity will be more likely to be described as an employee than an independent contractor. This legislation states that a person providing labor or services for compensation is considered to be an employee rather than an independent contractor unless the employer proves all of the following:
1. The worker is free from the control of the hiring entity;
2. The worker performs work outside the scope of the hiring entity’s business; and
3. The worker has his or her own independent business.
A gardener hired by the homeowners association to do routine gardening work might be considered to be an employee of the association rather than an independent contractor even though the gardener’s company is a separate legal entity, particularly if the association controls the work performed by the gardener and part of the association’s responsibility includes gardening.
