App-based Drivers and ServicesApp-based Driver Independence

Section § 7451

Explanation

This law states that app-based drivers, such as those working through ride-sharing or delivery apps, are considered independent contractors rather than employees, as long as certain conditions are met. These conditions include the network company not setting mandatory work schedules, not requiring drivers to accept specific service requests, and not limiting drivers to work exclusively for them or prevent them from other jobs. Essentially, if the drivers have control over when and who they work for, they maintain their status as independent contractors.

Protecting Independence. Notwithstanding any other provision of law, including, but not limited to, the Labor Code, the Unemployment Insurance Code, and any orders, regulations, or opinions of the Department of Industrial Relations or any board, division, or commission within the Department of Industrial Relations, an app-based driver is an independent contractor and not an employee or agent with respect to the app-based driver’s relationship with a network company if the following conditions are met:
(a)CA Business & Professions Code § 7451(a) The network company does not unilaterally prescribe specific dates, times of day, or a minimum number of hours during which the app-based driver must be logged into the network company’s online-enabled application or platform.
(b)CA Business & Professions Code § 7451(b) The network company does not require the app-based driver to accept any specific rideshare service or delivery service request as a condition of maintaining access to the network company’s online-enabled application or platform.
(c)CA Business & Professions Code § 7451(c) The network company does not restrict the app-based driver from performing rideshare services or delivery services through other network companies except during engaged time.
(d)CA Business & Professions Code § 7451(d) The network company does not restrict the app-based driver from working in any other lawful occupation or business.
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Section § 7452

Explanation

This law mandates that app-based drivers and network companies have a written contract before drivers get access to the company's app or platform. The company can only end the contract for specific reasons stated in the contract. If a driver is terminated, the company must provide a way for the driver to appeal the decision.

Contract and Termination Provisions. (a) A network company and an app-based driver shall enter into a written agreement prior to the driver receiving access to the network company’s online-enabled application or platform.
(b)CA Business & Professions Code § 7452(b) A network company shall not terminate a contract with an app-based driver unless based upon a ground specified in the contract.
(c)CA Business & Professions Code § 7452(c) Network companies shall provide an appeals process for app-based drivers whose contracts are terminated by the network company.
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Section § 7452.5

Explanation

This section clarifies that any rules or guidelines from Sections 7453 to 7467 do not change the working relationship between a network company and an app-based driver if they meet certain conditions described in Section 7451.

Independence Unaffected. Nothing in Article 3 (commencing with Section 7453) to Article 11 (commencing with Section 7467), inclusive, of this chapter shall be interpreted to in any way alter the relationship between a network company and an app-based driver for whom the conditions set forth in Section 7451 are satisfied.
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