ABC test California

How to Draft a California AB 5–Compliant Independent Contractor Agreement for a SaaS Startup in 2026

How to Draft a California AB 5–Compliant Independent Contractor Agreement for a SaaS Startup in 2026

In California, a SaaS startup must satisfy the AB 5 “ABC test” (or a statutory exemption) to classify a worker as an independent contractor in 2026. Misclassification can trigger wage-and-hour liability, penalties, and PAGA exposure. This article explains how to draft an AB 5–compliant independent contractor agreement for common SaaS roles, including key clauses, exemption […]

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How to Draft a California (Los Angeles) Independent Contractor Agreement That Passes the ABC Test (AB5)

How to Draft a California (Los Angeles) Independent Contractor Agreement That Passes the ABC Test (AB5)

California’s ABC test (AB5) presumes a worker is an employee unless the hiring entity proves all three prongs—A, B, and C—so a Los Angeles independent contractor agreement must be drafted to support that proof. In LA, the stakes include wage/hour exposure, PAGA claims, and local enforcement pressure. This article explains how to draft an agreement

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