A new law on the books in California strengthens rights and protections for construction drivers across the state.
Senate Bill 809, which went into effect on January 1, 2026, makes it harder for employers to classify construction drivers as independent contractors, rather than employees. Contractors are generally treated as self-employed entrepreneurs, meaning they are not covered by wage-and-hour, discrimination, or workers’ compensation laws.
“Workers deserve transparency and fairness on the job,” Sen. Maria Elena Durazo, the bill’s sponsor, said after Gov. Gavin Newsom signed it into law.
Misclassification is rampant across sectors in California, but is a particularly acute problem among construction drivers. It is a form of wage theft that waters down construction drivers’ paychecks and erodes their basic rights on the job.
The new law combats misclassification by making clear that just because a construction driver uses his or her own vehicle to do the job, that does not make the person an independent contractor. It also requires construction employers to reimburse such workers for their use of their personal vehicles.
At Justice Law Corporation, our California employment class action attorneys help working people in the construction industry across the state fight back to protect their rights on the job. We are seasoned attorneys who have dedicated our careers to assisting people in wage and hour, discrimination, and other cases.
The line between employee and contractor is likely to remain blurred. Here is why it matters for construction drivers and what you need to know.
Employee vs. Independent Contractor
In recent decades, companies and other employers systematically shifted the legal and tax responsibilities they typically shoulder to the people who work for them. Misclassifying workers as independent contractors is central to this strategy.
Contractors are not entitled to minimum wages and overtime pay. They also are not protected by laws banning discrimination and harassment on the job, and often do not have the right to join a union. Although contractors can write off certain business expenses for tax purposes, they are on the hook for both the employer and the employee share of payroll taxes.
Perhaps more importantly for construction drivers, contractors are not entitled to medical and income benefits through the workers’ compensation system when they are injured on the job or contract work-related illnesses. And they do not get unemployment insurance benefits if they lose their jobs and cannot find other work.
California already had some of the strictest worker classification laws in the country before Newsom signed SB 809.
The state uses what is often called the “ABC test” to determine whether workers are employees or contractors. Workers are presumed to be employees unless they meet all three of these requirements:
- The worker is free from the control and direction of the hiring entity in connection with the performance of the work;
- The worker performs work that is outside the usual course of the hiring entity’s business; and
- The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
Anyone who does not satisfy all three parts of the test is likely an employee, even if their boss treats them as a contractor.
Certain construction drivers who work under subcontracts are specifically exempt from the ABC test. They are instead covered by the older “Borello Test,” which focuses heavily on whether the worker controls the means and methods used to perform the job.
Using Your Own Truck Does Not Make You a Contractor
Many construction drivers use their own trucks on the job. SB 809 makes clear that this alone does not make them independent contractors under the law. It also requires companies to pay workers for the use of their vehicles.
The new law establishes a “two-check” pay system for construction drivers. Employers must pay the workers one check for their wages and a second for reimbursement for personal vehicle use on the job.
The law also includes an important nudge for construction employers to properly classify workers who were previously misclassified as contractors. It establishes an amnesty program for employers who own up to their mistakes and do the right thing.
Specifically, employers who reclassify workers as employees and properly compensate them are shielded from any penalties and fines they would otherwise have to pay the state for previously misclassifying the workers. Those companies would, however, still have to pay back wages and benefits that should have been paid to the workers had they been treated as employees all along.
The amnesty program is modeled on a similar system for employers in the port drayage motor carrier industry, which involves workers transporting goods over short distances to and from ports. That system, established in 2015, was designed to give employers an opportunity to “come in from the cold” and properly classify their employees.
How to Fight Misclassification
Companies do not get to simply choose who is an employee and who is a contractor. Workers who have been ripped off by being misclassified can fight back, including by joining together to challenge their status as independent contractors.
California law is on your side. You can file a claim with the California Labor Commissioner, whose office investigates allegations of workplace violations. You can also pursue a lawsuit against your employer, seeking back pay and benefits that you were deprived of as a result of misclassification.
Class actions are particularly powerful tools for working people. Workers in these suits join together to challenge a broad policy or practice – like the misclassification of large groups of workers as contractors – in a single case.
Our California Employment Class Action Attorneys Can Help
If you believe that your employer is violating your rights on the job, whether it is through misclassification or otherwise, you do not need to go it alone. A California employment class action attorney at Justice Law Corporation can help you evaluate your claim and understand your rights and options. Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California employment class action attorney.
