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 clarifying vehicle ownership rules and reimbursement requirements. The Construction Trucking Employer Amnesty Program allows eligible contractors to avoid certain penalties by properly reclassifying drivers as employees and executing settlement agreements with the Labor Commissioner before January 1, 2029.

Under the program, contractors must pay all back wages, benefits, and taxes owed to misclassified drivers, maintain converted positions as employee roles, and secure workers' compensation coverage. Settlement agreements may include installment payment plans up to 24 months. While drivers are not required to accept settlement terms, contractors must still reclassify them as employees if they decline.

The bill explicitly states that merely owning a vehicle used to provide labor or services does not automatically make someone an independent contractor. For construction trucking specifically, employee drivers who own their commercial vehicles are entitled to negotiated reimbursement for vehicle use, upkeep, and depreciation. This amount must meet or exceed either actual expenses or the IRS standard mileage rate.

The Labor Commissioner and Employment Development Department will jointly administer the program, with authority to review applications, negotiate settlements, and enforce compliance through civil actions when necessary. The agencies may share relevant information while maintaining existing confidentiality requirements. Contractors must provide detailed documentation of prior reclassifications and self-audits when applying for amnesty program participation.