How does AB5 affect your freelance therapy career?
California’s AB5 is a law that affects freelancers of every kind. FeldCare Connects is what the law calls a “business-to-business referral agency,” and every therapist utilizing our referral services falls under the banner of a freelancer.
If you are an SLP, OT, PT, or RD working in California, and you’d like to use FeldCare Connects for contract work, it’s vital that you understand how AB5 affects you.
What is AB5?
AB5 was established to protect those working as employees from being misclassified as contractors. The idea was to ensure workers in the gig economy were paid a minimum wage and could gain access to additional benefits if they were genuinely working as employees rather than independent contractors.
AB5 requires employers to use the three-pronged “ABC” test to determine if workers can be classified as independent contractors. Within AB5, there are exemptions carved out for some types of workers, such as real estate agents, for example. For those exempted workers, employers use a different test to see if the worker can be classified as an independent contractor: the Borello test.
“Whereas the ABC test requires that all three tests pass (all-or-nothing style), the Borello test is referred to as a ““multifactor” test because it requires consideration of all potentially relevant facts – no single factor controls the determination. Courts have emphasized different factors in the multifactor test depending on the circumstances.” (excerpted from CA.Gov)
No matter which test applies to your independent contracting services, the idea of AB5 is that all gig workers and other contractors must actually be working on an ad hoc basis – not as an employee in all but name.
How to determine your worker status when using Feldcare Connects
AB5 applies to Californian clinicians using the referral network at FeldCare Connects. Because AB5 carves out exemptions for workers who provide services through a referral agency, all therapists in California using our service must qualify under the multifactor Borello Test. The Borello Test is called a “multifactor” test because it relies on multiple factors to determine an individual’s employment status.
Here are the questions asked by the Borello Test:
- Does the worker have the sole right to control the manner and means of accomplishing the desired work results?
- Is the worker who performs the service engaged in an occupation or business distinct from that of the employer?
- Is the work a regular or integral part of the employer’s business?
- Does the employer or the worker supply the instrumentalities, tools, and the place for the worker to do the work?
- Does the service provided by the contractor require special skills?
- Is the work being done under the direct supervision of an employer?
- Is the length of time during which the worker is contracted to perform the services considered temporary and fixed rather than indefinite?
- What is the method of payment? Is it hourly payment, by job, or by some other means?
- Can the worker hire and fire their own employees?
- Does the employer have a right to fire at will, or would a termination lead to an action for breach of contract?
- Do the worker and the potential employer believe they are creating an employer-employee relationship?
As you can see, this test depends on many factors. When doing the Borello test, it is essential to understand that no single factor determines on its own that a worker is an independent contractor rather than an employee or vice versa. Instead, this test puts more weight on the amount of control an independent contractor has over their work – rather than the details of the arrangement.
FeldCare Connects is a referral service connecting agencies with clinicians willing to work on a contract basis. The SLPs, OTs, PTs, and RDs that use FeldCare Connects are independent contractors. That means they can choose their hours, with whom they wish to work, and more. It also means that they are responsible for the care they provide, completing the necessary reporting on time, transportation to a patient’s home, and more.
FeldCare Connects is committed to protecting workers’ rights. This includes the right to work when, where, and how they want to. We adhere strictly to local, state, and federal employment laws to give our clinicians the freedom to work how they want to, so they can focus on the patients they serve.
If this sounds like a good fit for you, we encourage you to sign up for our referral service and connect with home healthcare companies in need of your expertise. Click here to get started.
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Reach out to FeldCare Connects to kickstart your journey in home health now! Either call us at (818) 926-9057, or go to feldcareconnects.com/clinicians
