SB-809
Labor & Employment

Employees and independent contractors: construction trucking.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Establishes an amnesty program for construction contractors who misclassified truck drivers as independent contractors.
  • Requires contractors to reclassify drivers as employees and pay back wages by January 1, 2029 to avoid penalties.
  • Mandates reimbursement for drivers who use their own vehicles for work-related duties.
  • Clarifies that vehicle ownership alone does not make a driver an independent contractor.

Summary

Senator Durazo's construction trucking legislation establishes an amnesty program for contractors who misclassified drivers as independent contractors while clarifying that vehicle ownership alone does not determine employment status. The bill creates a pathway for eligible construction contractors to resolve past misclassification issues by entering settlement agreements with the Labor Commissioner before January 1, 2029.

Under the program, contractors who properly reclassify their drivers as employees and meet settlement terms would receive relief from certain civil and statutory penalties. Settlement agreements must include payment of back wages and benefits, maintenance of employee positions, and proof of workers' compensation coverage. The Labor Commissioner may also approve agreements negotiated between contractors and labor unions or city attorneys.

The legislation specifies that merely owning a vehicle used for work does not automatically make someone an independent contractor. For construction trucking specifically, employee drivers who own their commercial vehicles must be reimbursed for vehicle use, upkeep and depreciation. Reimbursement rates, negotiated between drivers and employers or through union representation, cannot fall below IRS standard mileage rates or actual expenses.

To participate, contractors must demonstrate eligibility, conduct self-audits, and file required tax returns. The Labor Commissioner and Employment Development Department will jointly administer the program, with authority to share necessary information and pursue civil enforcement of settlement terms. While the program offers penalty relief, it maintains exceptions for fraud, criminal investigations, and certain tax assessments predating agreements.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Labor and Employment
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Labor and Employment
Hearing has not been scheduled yet
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB809 Durazo
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass as amended
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Senate Labor, Public Employment and Retirement Hearing
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
Do pass, but first be re-referred to the Committee on [Judiciary]
Introduced
Senate Floor
Introduced
Introduced. To Com. on RLS. for assignment. To print.

Contacts

Profile
Ash KalraD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Heath FloraR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Maria DurazoD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Alex LeeD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Ash KalraD
Assemblymember
Committee Member
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Heath FloraR
Assemblymember
Committee Member
Profile
Maria DurazoD
Senator
Bill Author
Profile
Alex LeeD
Assemblymember
Committee Member
Profile
Chris WardD
Assemblymember
Committee Member
Profile
Liz OrtegaD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Maria Durazo
Maria DurazoD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/29/2025)

Latest Voting History

May 29, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
2810240PASS

Key Takeaways

  • Establishes an amnesty program for construction contractors who misclassified truck drivers as independent contractors.
  • Requires contractors to reclassify drivers as employees and pay back wages by January 1, 2029 to avoid penalties.
  • Mandates reimbursement for drivers who use their own vehicles for work-related duties.
  • Clarifies that vehicle ownership alone does not make a driver an independent contractor.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Maria Durazo
Maria DurazoD
California State Senator

Summary

Senator Durazo's construction trucking legislation establishes an amnesty program for contractors who misclassified drivers as independent contractors while clarifying that vehicle ownership alone does not determine employment status. The bill creates a pathway for eligible construction contractors to resolve past misclassification issues by entering settlement agreements with the Labor Commissioner before January 1, 2029.

Under the program, contractors who properly reclassify their drivers as employees and meet settlement terms would receive relief from certain civil and statutory penalties. Settlement agreements must include payment of back wages and benefits, maintenance of employee positions, and proof of workers' compensation coverage. The Labor Commissioner may also approve agreements negotiated between contractors and labor unions or city attorneys.

The legislation specifies that merely owning a vehicle used for work does not automatically make someone an independent contractor. For construction trucking specifically, employee drivers who own their commercial vehicles must be reimbursed for vehicle use, upkeep and depreciation. Reimbursement rates, negotiated between drivers and employers or through union representation, cannot fall below IRS standard mileage rates or actual expenses.

To participate, contractors must demonstrate eligibility, conduct self-audits, and file required tax returns. The Labor Commissioner and Employment Development Department will jointly administer the program, with authority to share necessary information and pursue civil enforcement of settlement terms. While the program offers penalty relief, it maintains exceptions for fraud, criminal investigations, and certain tax assessments predating agreements.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/29/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Labor and Employment
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Labor and Employment
Hearing has not been scheduled yet
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB809 Durazo
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass as amended
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Senate Labor, Public Employment and Retirement Hearing
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
Do pass, but first be re-referred to the Committee on [Judiciary]
Introduced
Senate Floor
Introduced
Introduced. To Com. on RLS. for assignment. To print.

Latest Voting History

May 29, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
2810240PASS

Contacts

Profile
Ash KalraD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Heath FloraR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Maria DurazoD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Alex LeeD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Ash KalraD
Assemblymember
Committee Member
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Heath FloraR
Assemblymember
Committee Member
Profile
Maria DurazoD
Senator
Bill Author
Profile
Alex LeeD
Assemblymember
Committee Member
Profile
Chris WardD
Assemblymember
Committee Member
Profile
Liz OrtegaD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member