HB434 Alabama 2016 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2016

Title

Labor, expand independent contractor, Secs. 25-15-1, 25-15-2 added

Summary

HB434 would treat qualified marketplace contractors as independent contractors (not employees) if they sign a compliant written contract with a marketplace platform in Alabama.

What This Bill Does

It creates a formal definition of qualified marketplace contractors and platforms. It sets that a contractor is an independent contractor for all state and local laws if a written contract with the platform states they are an independent contractor, allows flexible or self-chosen hours, lets them work for others, requires them to provide their own tools, and places tax responsibility on the contractor. It also extends this independent status to contractors with pre-existing contracts that meet these criteria, and it starts the law on the first day of the third month after passage/approval.

Who It Affects

• Qualified marketplace contractors: would be classified as independent contractors rather than employees if they have a compliant written contract with a marketplace platform.
• Qualified marketplace platforms: must include specific terms in the written contracts to keep contractors as independent contractors and would be the party ensuring the contract meets the criteria.

Key Provisions

• Defines qualified marketplace contractor and qualified marketplace platform.
• A contractor qualifies as an independent contractor for all state/local laws if a written contract with a marketplace platform states: (a) they are engaged as an independent contractor, (b) they may choose their own hours unless a written arrangement requires certain hours, (c) they may work for other opportunities, (d) they provide their own instruments/tools, and (e) they pay their own taxes.
• Pre-enactment provision: contractors whose services were governed by a qualifying written contract before enactment retain independent contractor status if the contract meets the requirements.
• Effective date: the act becomes law on the first day of the third month following passage/approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Contractors