From JD Supra, Matthew Goldberg, Elizabeth Holland, Melissa Jo Kendra, Brittany Sachs, and Heather Sager discuss recently enacted legislation affecting independent contractors in California including SB 809 — Independent Contractors and Employee Expenses which provides an amnesty program for misclassified workers in the construction and trucking industries and codifying existing law that owning a vehicle used while providing services does not make the driver an independent contractor. Matthew, Elizabeth, Melissa Jo, Brittany and Heather write:
SB 809 — Independent Contractors and Employee Expenses
SB 809 creates the Construction Trucking Employer Amnesty Program, administered by the labor commissioner and Employment Development Department. Eligible contractors who sign a settlement agreement approved by the labor commissioner to properly classify construction drivers as employees will not be liable for penalties for prior misclassification.
Separately, SB 809 also establishes that it is declarative of existing law that ownership of a vehicle, including a personal or commercial vehicle, used by a person providing labor or services for remuneration does not render the individual an independent contractor. Finally, SB 809 establishes that it is declarative of existing law that Labor Code Section 2802 (which requires employers to reimburse employees for necessary business-related expenses) applies to an employee’s use of a vehicle, including a personal or commercial vehicle, which the employee owns and uses to perform their duties.
Effective date: January 1, 2026
Action items: Businesses and employers should evaluate their processes for classifying workers as independent contractors and should ensure their expense reimbursement processes for employees comply with SB 809.