PAGA
New Amnesty Program and Vehicle Rules for Construction Trucking Drivers
Updated
Senate Bill 809, authored by Senator Durazo, adds three sections to the California Labor Code addressing how construction trucking drivers are classified and reimbursed. It creates a Construction Trucking Employer Amnesty Program, states that owning a vehicle does not by itself make a worker an independent contractor, and confirms that employees who own the vehicles they use must be reimbursed for that use. The measure was chaptered on October 11, 2025, and takes effect January 1, 2026.
Background
Under existing California law, a worker who performs services for a hiring entity is presumed to be an employee unless the hirer satisfies the three-part “ABC” test drawn from Dynamex Operations West v. Superior Court (2018) and later codified. That test asks whether the worker is free from control, performs work outside the hirer’s usual business, and is engaged in an independent trade. The Labor Commissioner enforces these classification rules.
An existing Motor Carrier Employer Amnesty Program allowed drayage motor carriers to settle misclassification liability with the Labor Commissioner before January 1, 2017. SB 809 builds on that model for the construction trucking sector by adding Labor Code sections 2750.9, 2775.5, and 2802.2. It targets the treatment of drivers who own the vehicles they operate.
What the Law Changes
New Labor Code section 2750.9 establishes the Construction Trucking Employer Amnesty Program, jointly administered by the Labor Commissioner and the Employment Development Department. An eligible construction contractor that executes or obtains approval of a settlement agreement before January 1, 2029, agreeing to classify all of its drivers as employees, may be relieved of most statutory and civil penalties tied to prior misclassification.
To qualify, a contractor must apply, report a self-audit, and have no misclassification lawsuit pending that was filed on or before December 31, 2025, and no final penalty under Unemployment Insurance Code section 1128. Settlements must require payment of all wages, benefits, and taxes owed, with interest, and must secure workers’ compensation coverage for the reclassified drivers.
New section 2775.5 provides that mere ownership of a vehicle, personal or commercial, does not make a person an independent contractor; the worker’s status still turns on the ABC test. New section 2802.2 confirms that an employer’s duty to indemnify employees under Labor Code section 2802 applies to a vehicle owned by an employee and used in their work. The Legislature states that these provisions are declarative of existing law.
SB 809 creates a time-limited amnesty program letting construction contractors settle driver-misclassification liability by reclassifying drivers as employees, and it confirms that vehicle ownership alone does not establish independent-contractor status while requiring reimbursement for employee-owned vehicles.
Reimbursement and Driver Choice
For construction trucking, section 2802.2 entitles a commercial motor vehicle driver who owns the truck, tractor, trailer, or other vehicle used in their duties to reimbursement for its use, upkeep, and depreciation, whether owned individually or through a corporate entity. The amount is negotiated by the driver or a labor union and the employer, as either a flat rate or a per-mile rate, and may not fall below the actual amount expended or the standard IRS mileage rate.
A construction driver is not obligated to accept a settlement. Under section 2750.9, a driver who declines is not bound by the agreement, but the contractor must still reclassify that driver as an employee, and the driver is precluded from pursuing civil or statutory penalties under the Labor Code Private Attorneys General Act of 2004 for claims arising during the covered period. The Labor Commissioner may negotiate or approve settlements only before January 1, 2029.
What This Means for You
This law creates a program through which construction contractors may settle prior driver-misclassification liability by reclassifying drivers as employees before January 1, 2029. It also confirms that vehicle ownership alone does not make a worker an independent contractor and that employees who supply their own trucks are entitled to reimbursement. It reaches classification and reimbursement disputes in the construction trucking sector.
I write these summaries as general information about developments in California employment law. They are not legal advice and don’t create a mediator–client relationship. For guidance on a specific matter, consult a qualified attorney.