California Assembly Bill AB621 Amended / Bill

 BILL NUMBER: AB 621AMENDED BILL TEXT AMENDED IN SENATE JUNE 25, 2015 AMENDED IN ASSEMBLY JUNE 1, 2015 INTRODUCED BY Assembly Member Roger Hernndez FEBRUARY 24, 2015 An act to add Section 2750.8 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGEST AB 621, as amended, Roger Hernndez. Drayage truck operators. Existing law governs the relationship between an employer and an employee with regard to hiring, promotion, discipline, wages and hours, working conditions, and administrative and judicial remedies. Existing law sets forth guidelines for determining whether a person who performs work for another pursuant to a contract is an employee or an independent contractor. Existing law authorizes the Labor Commissioner to investigate employee complaints and to conduct a hearing in any action to recover wages, penalties, and other demands for compensation. This bill would, notwithstanding any law, relieve a motor carrier performing drayage services of liability for statutory or civil penalties associated with misclassification of commercial drivers as independent contractors if the motor carrier enters into a  consent decree   settlement agreement  with the Labor Commissioner prior to January 1, 2017, whereby the motor carrier agrees to convert all of its commercial drivers to employees, and the  consent decree   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. The bill would permit a  consent decree   settlement agreement  to contain a provision authorizing the Labor Commissioner to recover from the carrier specified costs associated with the  consent decree   settlement agreement  . Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2750.8 is added to the Labor Code, to read: 2750.8. (a) Notwithstanding any law, a motor carrier performing drayage services at one or more ports in this state shall be relieved of liability for statutory or civil penalties associated with misclassification of commercial drivers as independent contractors if the motor carrier enters into a  consent decree   settlement agreement  with the Labor Commissioner whereby the motor carrier agrees to convert all of its commercial drivers to employees. (b) A  consent decree   settlement agreement  entered into pursuant to subdivision (a) shall contain all of the following: (1) An agreement by the motor carrier to pay all wages, benefits, and taxes owed, if any, to or in relation to all of its converted commercial drivers covering the period of time from the first date of misclassification to the date the  consent decree   settlement agreement  is entered into, but not exceeding the applicable statute of limitations. (2) An agreement by the motor carrier to maintain any converted commercial driver positions as employee positions. (3) An agreement by the motor carrier that any future commercial drivers hired to perform the same or similar duties as those employees converted pursuant to subdivision (a) shall be presumed to have employee status and that the motor carrier shall have the burden to prove by clear and convincing evidence that they are not employees in any administrative or judicial proceeding in which their employment status is an issue. (4) Any other provisions the Labor Commissioner deems necessary to carry out the intent of this section or to enforce the  provisions of the consent decree.   settlement agreement.  (c) As used in this section, the following terms have the following meanings: (1) "Commercial driver" means a person who holds a valid commercial driver's license hired or contracted with to provide port drayage services. (2) "Motor carrier" means a registered owner, lessee, licensee, or bailee of a commercial motor vehicle as set forth in  subdivision (b) of  Section  34500  15210  of the Vehicle Code, who operates or directs the operation of any such vehicle on a for-hire or not-for-hire basis to perform port drayage services. (3) "Port" means any sea or river port in this state. (d) A  consent decree   settlement agreement  entered into pursuant to subdivision (a) may contain a provision authorizing the Labor Commissioner to recover from the motor carrier an amount necessary to cover the Labor Commissioner's reasonable costs associated with the review, approval, and compliance with the  consent decree   settlement agreement  . (e) This section shall not apply to a motor carrier that has a pending civil lawsuit against it in state or federal court alleging misclassification of commercial drivers where the lawsuit was filed prior to January 1, 2015. (f) This section shall apply only to  consent decrees   settlement agreements  entered into by the Labor Commissioner prior to January 1, 2017.