PRIA Logo™
CaliforniaSB 8092025-2026 Regular SessionSenateWALLET

Employees and independent contractors: construction trucking.

Sponsored By: Maria Elena Durazo (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Amnesty and rules for construction trucking contractors

The law creates a time‑limited Construction Trucking Employer Amnesty Program run by the Labor Commissioner and EDD. Eligible contractors apply and self‑audit; they cannot have a civil misclassification suit filed on or before December 31, 2025, or a final UI §1128 penalty on the application date. To settle, they must reclassify drivers as employees, file returns, report unreported wages and taxes, pay all owed wages, benefits, and payroll taxes with interest, and secure workers’ compensation right away (proof within five days). Converted jobs must stay employee roles and future similar drivers are presumed employees unless clearly proven otherwise. Settlements can allow up to 24 months of installments; interest applies; missing obligations without good cause voids the deal. In return, the state does not enforce most civil or statutory misclassification penalties for the covered period, and unassessed UI penalties and interest under specified sections are not enforced; final §1128 penalties, fraud, and cases with criminal notice still apply. EDD cannot bring certain criminal tax cases for covered periods, except for violations in UI §2119. The statute of limitations is paused during the application and performance period. Agencies may charge reasonable monitoring costs, and there are no refunds or credits for penalties or interest paid before you applied. The Labor Commissioner can enforce settlements in court, with a hearing within 60 days and recovery of costs and attorney fees when you violated the deal. The Commissioner can negotiate and approve these settlements only until January 1, 2029. Agencies may share needed information without waiving confidentiality.

Owner-drivers get paid for vehicle costs

Owning the truck you use for work does not, by itself, make you an independent contractor. If you are an employee driver who owns the truck or trailer, your employer must reimburse you for use, upkeep, and depreciation. Reimbursement is negotiated as a flat rate or per‑mile amount. A flat rate must at least cover what you actually spent; per‑mile pay must be at least the IRS standard mileage rate. Your employer may pay the reimbursement to your company if your company owns the vehicle. Labor Code section 2802 applies to employee vehicle use.

How reclassified drivers get paid

If you are a construction driver reclassified as an employee in a settlement, the Labor Commissioner pays you only if you sign a release covering the settled claims. You may refuse. If you refuse, you cannot bring Private Attorneys General Act (PAGA) claims for the covered period, and the contractor does not have to pay the amount listed for you in the settlement.

Sponsors & Cosponsors

Sponsor

  • Maria Elena Durazo

    Democratic • Senate

Cosponsors

  • Ash Kalra

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 172 • No: 39

Senate vote • 9/13/2025

Item 136 — Senate SFLOOR

Yes: 29 • No: 8

House vote • 9/12/2025

Item 68 — Assembly AFLOOR

Yes: 63 • No: 12

legislature vote • 8/29/2025

Vote in CX25

Yes: 11 • No: 3

legislature vote • 7/15/2025

Vote in CX13

Yes: 9 • No: 3

legislature vote • 7/9/2025

Vote in CX14

Yes: 6 • No: 0

Senate vote • 5/29/2025

Item 246 — Senate SFLOOR

Yes: 28 • No: 10

legislature vote • 5/23/2025

Vote in CS61

Yes: 5 • No: 1

legislature vote • 5/19/2025

Vote in CS61

Yes: 5 • No: 0

legislature vote • 4/22/2025

Vote in CS53

Yes: 12 • No: 1

legislature vote • 4/9/2025

Vote in CS56

Yes: 4 • No: 1

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 659, Statutes of 2025.

    10/11/2025Senate

  2. Approved by the Governor.

    10/11/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/23/2025legislature

  4. Assembly amendments concurred in. (Ayes 29. Noes 8. Page 3028.) Ordered to engrossing and enrolling.

    9/13/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/12/2025Senate

  6. Read third time. Passed. (Ayes 63. Noes 12. Page 3405.) Ordered to the Senate.

    9/12/2025House

  7. Read second time. Ordered to third reading.

    9/3/2025House

  8. Read second time and amended. Ordered to second reading.

    9/2/2025House

  9. From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 29).

    8/29/2025House

  10. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (July 15). Re-referred to Com. on APPR.

    7/16/2025House

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

    7/10/2025House

  13. From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (July 9). Re-referred to Com. on JUD.

    7/10/2025House

  14. Referred to Coms. on L. & E. and JUD.

    6/5/2025House

  15. In Assembly. Read first time. Held at Desk.

    5/29/2025House

  16. Read third time. Passed. (Ayes 28. Noes 10. Page 1339.) Ordered to the Assembly.

    5/29/2025Senate

  17. Read second time. Ordered to third reading.

    5/27/2025Senate

  18. Read second time and amended. Ordered to second reading.

    5/23/2025Senate

  19. From committee: Do pass as amended. (Ayes 5. Noes 1. Page 1214.) (May 23).

    5/23/2025Senate

  20. Set for hearing May 23.

    5/20/2025Senate

  21. May 19 hearing: Placed on APPR. suspense file.

    5/19/2025Senate

  22. Set for hearing May 19.

    5/9/2025Senate

  23. May 12 hearing postponed by committee.

    5/6/2025Senate

  24. Set for hearing May 12.

    5/2/2025Senate

  25. May 5 set for first hearing canceled at the request of author.

    4/29/2025Senate

Bill Text

  • Chaptered

    10/11/2025

    HTML

  • Enrolled

    9/18/2025

    HTML

  • Amended Assembly

    9/2/2025

    HTML

  • Amended Assembly

    7/10/2025

    HTML

  • Amended Senate

    5/23/2025

    HTML

  • Amended Senate

    4/24/2025

    HTML

  • Amended Senate

    3/28/2025

    HTML

  • Introduced

    2/21/2025

    HTML

Related Bills

Back to State Legislation