From JD Supra, Linda Auerbach Allderdice, Stephen Baumann II, John Haney, Thomas Hill, Samuel Stone, and Tamar Tellado discuss new laws in California in 2026 including a law that creates a safe harbor for companies tha sign a settlement agreement to properly classify construction drivers as employees after which they would not be liable for prior misclassification penalites. Linda, Stephen, John, Thomas, Shamuel and Tamar write:
- SB 809: Independent Contractors and Employee Vehicle Business Expenses. SB 809 is a safe harbor of sorts: 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. The statute also specifies that an employer’s Labor Code Section 2802 reimbursement obligation includes use of a vehicle “owned by an employee and used by that employee in the discharge of their duties.” SB 809 reflects California’s ongoing efforts to effect reclassification of independent owner-operator truck drivers (among others) to employee status.
Source: A Look at New California Labor and Employment Laws for 2026 | Holland & Knight LLP – JDSupra
