Employees and independent contractors: construction trucking.

Senator Durazo's construction trucking legislation establishes new worker classification standards and creates an amnesty program for employers who have misclassified drivers as independent contractors. The bill specifies that vehicle ownership alone does not determine independent contractor status and mandates reimbursement for employee-owned vehicles used for work purposes.

Under the Construction Trucking Employer Amnesty Program, eligible contractors can obtain relief from civil and statutory penalties by entering settlement agreements with the Labor Commissioner before January 1, 2029. To qualify, contractors must properly classify drivers as employees, pay all owed wages and benefits, maintain employee positions, and secure workers' compensation coverage. The program excludes contractors with pending misclassification lawsuits or final penalties from the Employment Development Department.

The legislation requires employers to reimburse construction drivers who own their vehicles for use, maintenance, and depreciation costs. Reimbursement rates, whether flat-rate or per-mile, must be negotiated between drivers and employers or through labor unions, with minimum amounts matching actual expenses or IRS standard mileage rates. Payments can go directly to drivers or to corporate entities that own the vehicles.

The Labor Commissioner and Employment Development Department will jointly administer the amnesty program, with authority to enforce settlement agreements through civil actions. While the program waives most penalties for compliant contractors, those related to fraud or ongoing criminal investigations remain enforceable.