SB 809: Employees and independent contractors: construction trucking.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law, as established in the case of Dynamex Operations W. v. Superior Court (2018) 4 Cal.5th 903 (Dynamex), creates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits arising under wage orders issued by the Industrial Welfare Commission. Existing law requires a 3-part test, commonly known as the “ABC” test, to determine if workers are employees or independent contractors for those purposes.

Existing law establishes that, for purposes of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission, a person providing labor or services for remuneration is considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation, or business. This test is commonly known as the “ABC” test, as described above. Existing law charges the Labor Commissioner with the enforcement of labor laws, including worker classification.

Existing law exempts specified occupations and business relationships from the application of Dynamex and the provisions described above.

This bill would provide that mere ownership of a vehicle, including a personal vehicle or a commercial vehicle, used by a person in providing labor or services for remuneration does not make that person an independent contractor. The bill would state that this provision is declarative of existing law.

(2)Existing law establishes the Motor Carrier Employer Amnesty Program administered by the Labor Commissioner and the Employment Development Department. Pursuant to the program, notwithstanding any law, a motor carrier performing drayage services may be relieved of liability for statutory or civil penalties associated with the misclassification of commercial drivers as independent contractors if the motor carrier enters into a settlement agreement with the commissioner, with the cooperation and consent of the department, prior to January 1, 2017, whereby the motor carrier agrees to classify all of its commercial drivers as employees, and the settlement agreement contains prescribed components, including, but not limited to, an agreement by the motor carrier to pay all wages, benefits, and taxes owed, if any.

This bill would establish a similar program, known as the Construction Trucking Employer Amnesty Program, to be administered by the commissioner and the department. Under the bill, an eligible construction contractor would be relieved of liability for statutory or civil penalties, except as provided, associated with the misclassification of construction drivers as independent contractors, if the eligible construction contractor executes a settlement agreement negotiated with, or approved by, the commissioner prior to January 1, 2029, whereby the eligible construction contractor agrees to properly classify all drivers performing construction work on their behalf as employees and the settlement agreement contains prescribed components, including, but not limited to, an agreement by the construction contractor to pay all wages, benefits, and taxes owed, if any. If a construction driver declines to accept the terms of a settlement agreement, the bill would still require an eligible construction contractor to reclassify the construction driver as an employee and the construction driver would be precluded from pursuing a claim for civil or statutory penalties under specified provisions of law for a claim arising during the period of time covered by the settlement agreement.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 11, 2025Chaptered by Secretary of State. Chapter 659, Statutes of 2025.
2. October 11, 2025Approved by the Governor.
3. September 23, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 13, 2025Assembly amendments concurred in. (Ayes 29. Noes 8. Page 3028.) Ordered to engrossing and enrolling.
5. September 12, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 12, 2025Read third time. Passed. (Ayes 63. Noes 12. Page 3405.) Ordered to the Senate.
7. September 3, 2025Read second time. Ordered to third reading.
8. September 2, 2025Read second time and amended. Ordered to second reading.
9. August 29, 2025From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 29).
10. August 20, 2025August 20 set for first hearing. Placed on APPR. suspense file.
11. July 16, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (July 15). Re-referred to Com. on APPR.
12. July 10, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.