Chino, CA asked in Employment Law and Business Law for California

Q: Vending Machine Stocking as a independent contractor?

Can I hire someone as a independent contractor to stock my vending machines using the business to business exemption to the AB 5 law if they have their own business license for services?

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2 Lawyer Answers

A: The “ business to business exemption” is very narrowly tailored. Assuming the other party is a legitimate business, properly licensed to do the sort of business, eg stocking vending machines; he has his own place of business independent of yours; he is contracted with you in writing to perform that task, free of your control; he maintains an independent clientele that may include clients other than your business and holds himself out for that business, independent of your control; he negotiates his own rates, sets his own hours, and provides his own tools/vehicle; is not subject to licensure by the CSLB; and is a legitimately independent business operation, as opposed to a 1099 employee purporting to be an independent worker for this purpose, then yes, you can.

A: If you are going to hire someone and work them as an independent contractor, you need to be 100% right about that person's classification as employee vs. IC. It would be reckless to govern your employment practices on sound bite guidance on an internet Q&A from attorneys that are allowed to know just the little bit of information about your business from your post. You need solid legal advice that none of us here can give based on just your small post.

It would be wise for you to locate and consult with an employment law attorney who can be allowed to know all about this position, its duties and the like.

Good luck to you.

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