Employees and independent contractors: construction trucking.

Senator Durazo's construction trucking legislation establishes an amnesty program for contractors who misclassified drivers as independent contractors while creating new protections regarding vehicle ownership and reimbursement. Under the program, eligible contractors can obtain relief from penalties by executing settlement agreements to reclassify drivers as employees and pay back wages, benefits and taxes owed.

The bill specifies that merely owning a vehicle used for work does not automatically make someone an independent contractor. Construction drivers who own their trucks but are classified as employees must be reimbursed for vehicle use, maintenance and depreciation at negotiated rates no less than actual expenses or IRS mileage standards.

To participate in the amnesty program, contractors must apply by 2029, conduct self-audits, and have no pending misclassification lawsuits or final penalties. Settlement agreements require maintaining employee classifications, providing workers' compensation coverage, and allowing the Labor Commissioner to monitor compliance. While drivers can decline settlement terms, contractors must still reclassify them as employees.

The Labor Commissioner and Employment Development Department will jointly administer the program, with authority to negotiate agreements, approve settlements reached with unions or city attorneys, and pursue civil enforcement if contractors fail to meet their obligations. The agencies can share information necessary for implementation while maintaining confidentiality requirements.