BILL NUMBER: AB 621	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 25, 2015
	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   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.