ABC Test Law and Legal Definition

ABC test is a test to determine whether a person is an employee or an independent contractor for the purpose of determining state unemployment tax. The rule says that an employee is not entitled to unemployment insurance benefits if the employee is free from the control of the employer ;works away from the employer's place of business, and customarily, is engaged in an independent trade, occupation, profession, or business. The name derives from the A, B, and C commonly used in designating the three parts of the test.