BILL NUMBER: AB 621	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 1, 2015

INTRODUCED BY   Assembly Member Roger Hernández

                        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 Hernández. 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 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 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 to contain a provision authorizing the Labor
Commissioner to recover from the carrier specified costs associated
with the consent decree. 
   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 with the Labor
Commissioner whereby the motor carrier agrees to convert all of its
commercial drivers to employees.
   (b) A consent decree 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 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.
   (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 Section 34500
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 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.  
   (d) 
    (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. 
   (e) 
    (f)  This section shall apply only to consent decrees
entered into by the Labor Commissioner prior to January 1, 2017.