ABC Test

The "ABC" test is the set of three criteria used to determine, under most state unemployment insurance laws, whether a worker is an employee performing covered services. Under the "ABC" test, services are excluded from coverage only if all three of the following conditions are met: (1) the worker is free from control or direction in the performance of work under the contract of service and in fact; (2) service is performed either outside the usual course of the business for which it is performed, or it is performed outside of all places of business of the enterprise for which it is performed; and (3) the individual is customarily engaged in an independent trade, occupation, profession, or business. A few states have simplified the test further by using any two of the three conditions.