HB434 By Representatives Williams (JD) and Boyd RFD Commerce and Small Business Rd 1 17-MAR-16

SYNOPSIS: This bill would provide that a qualified marketplace contractor shall be treated as an independent contractor and not an employee for all purposes under state and local laws, rules, regulations, and ordinances if there is a written contract executed between the contractor and a qualified marketplace contractor which contains clauses related to the terms and conditions of employment.

A BILL TO BE ENTITLED AN ACT

To add Chapter 15, commencing with Section 25-15-1, to Title 25 of the Code of Alabama 1975, to provide that a qualified marketplace contractor shall be treated as an independent contractor and not an employee for all purposes under state and local laws, regulations, and ordinances if there is a written contract executed between the contractor and a qualified marketplace contractor which contains clauses related to the terms and conditions of employment.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Chapter 15, commencing with Section 25-15-1, is added to Title 25 of the Code of Alabama 1975, to read as follows:

CHAPTER 15. QUALIFIED MARKETPLACE CONTRACTORS.

§25-15-1.

For purposes of this act, the following terms and phrases shall have the following meanings:

(1) QUALIFIED MARKETPLACE CONTRACTOR or CONTRACTOR. A person or organization, including, but not limited to, a natural person, corporation, limited liability company, partnership, sole proprietor, or other entity, that enters into an agreement with a qualified marketplace platform to use the platform's digital platform to provide services to third party individuals or entities seeking the services.

(2) QUALIFIED MARKETPLACE PLATFORM. An organization including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity that operates a digital platform that facilitates the provisions of services by qualified marketplace contractors to third party individuals or entities seeking services.

§25-15-2.

(a) A qualified marketplace contractor shall be treated as an independent contractor and not an employee for all purposes under state and local laws, regulations, and ordinances, including, but not limited to, Chapters 4 and 5 of this title, if:

(1) The services performed by the contractor are governed by a written contract executed between the contractor and a qualified marketplace platform.

(2) The written contract provided for in subdivision (1) provides for the following:

a. The contractor shall be engaged as an independent contractor, not as an employee.

b. The contractor shall be permitted to work any hours or schedules he or she chooses; provided, that, if a contractor elects to work specified hours or schedules, a contract, or other written arrangement, may require the worker to perform work during the selected hours or schedules.

c. The contractor shall be free to engage in any other occupation or business opportunity, including performing services through other qualified marketplace platforms.

d. The contractor shall provide, at the contractor's own expense, all or substantially all of the necessary equipment, tools, and other materials to perform the services.

e. The qualified marketplace contractor shall be responsible for tax on the qualified marketplace contractor's own income.

(b) For services performed by a marketplace contractor prior to the enactment of this chapter, the qualified marketplace contractor shall be treated as an independent contractor for all purposes under state and local laws, rules, regulations, and ordinances, including, but not limited to, Chapters 4 and 5 of this title if the services performed by the contractor were governed by a written contract executed between the contractor and a qualified marketplace platform that conforms to the requirements of subdivision (2) of subsection (a).

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Contractors

Independent Contractors

Employment

Code Added