Learn about AB 5 and how to determine if a worker is an independent contractor or employee. Learn about independent contractor rights in California, including wage protections, benefits eligibility, and legal distinctions under state labor laws.Consult with an employment law attorney to make sure you are not going to misclassify a worker as an independent contractor. What Do You Put in an Independent Contractor Agreement? Our CA employment lawyers will explain what you should know about California misclassification and independent contractor law. In California, if you report your income on a Form 1099, you are an independent contractor, while if you report it on a W2 form, you are an employee. A contract or written agreement between the parties can help protect a 1099 employee's rights. Where the hiring entity requires the worker, as a condition of hiring, to enter into a contract that designates the worker an independent contractor. The law has no bearing on the determination of whether someone is an employee or independent contractor. For most issues, California uses the ABC test to distinguish an employee from an independent contractor.