Motor Carrier Employer Amnesty Program

New law eases penalties for motor carrier employers.

In the fall of 2015, the Governor signed Assembly Bill (AB) 621 establishing the Motor Carrier Employer Amnesty Program. This program is available through December 31, 2016, and may relieve employers of both statutory and civil penalties associated with the misclassification of commercial drivers as independent contractors.

This law added Section 2750.8 to the Labor Code allowing eligible motor carriers performing drayage services to enter into a settlement agreement with the Labor Commissioner, with the cooperation and consent of the Employment Development Department (EDD), to convert all of its commercial drivers to employees.

An agreement by the motor carrier will include the payment of all wages, benefits, and taxes owed, and provides for relief of penalties that would normally apply to a motor carrier employer who is not in compliance with the applicable laws associated with both the Labor Commissioner and the EDD.

In lieu of full payment, arrangement can be made to pay installments on outstanding amounts due.

For more information about this program or to obtain a Motor Carrier Employer Amnesty Program Application visit the Division of Labor Standards Enforcement (DLSE).

Source: California Employment Development Department

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