Learn about AB 5 and how to determine if a worker is an independent contractor or employee. It is understood and agreed that Contractor (including contractor's employees) is an independent contractor and that no relationship of employer-employee exists.It is understood and agreed that CONTRACTOR (including CONTRACTOR's employees) is an independent contractor and that no relationship of employer-employee. An Independent Contractor Agreement is a contract between a company and an independent contractor to hire the contractor without them becoming an employee. The new law aims to give freelancers "basic worker protections" and the right to be paid on time. All terms of employment, including hours, wages, working conditions, discipline, hiring, and discharging, or any other terms of employment or requirements of. When hiring an independent contractor, having an Independent Contractor Agreement is important. California has very stringent labor laws. Whether an individual is an "employee" or an "independent contractor" determines whether the individual must be enrolled in CalPERS under certain circumstances. AB 2257 retains the Dynamex test as the default test for determining independent contractor versus employee status in California.