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 clarifies that vehicle ownership alone does not determine contractor status and mandates reimbursement for employee-owned vehicles used for work purposes.

Under the Construction Trucking Employer Amnesty Program, eligible contractors can avoid penalties for past misclassification by executing settlement agreements with the Labor Commissioner before January 1, 2027. To participate, contractors must reclassify drivers as employees, pay all back wages and benefits, provide workers' compensation coverage, and agree that future hires in similar roles will be presumed employees. The program excludes contractors with pending civil lawsuits or final penalties related to misclassification.

The legislation also addresses vehicle reimbursement, requiring employers to compensate construction drivers who use their own trucks for work-related expenses including maintenance and depreciation. Reimbursement rates must be negotiated between employers and drivers or their union representatives, with minimum payments matching either actual expenses or IRS standard mileage rates. These provisions apply whether vehicles are owned individually or through corporate entities.

The Labor Commissioner and Employment Development Department will jointly administer the amnesty program, with authority to negotiate settlements, monitor compliance, and pursue civil enforcement actions against violators. While the program offers liability protection for statutory penalties, it maintains penalties for fraud and does not shield employers from criminal investigations or proceedings initiated before settlement agreements.