SB150 Alabama 2022 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsors

Tom ButlerSteve Livingston

Session

Regular Session 2022

Title

Labor, definitions of employment, marketplace contractors under certain conditions not an employee of marketplace platform, Sec. 25-4-121 repealed; Sec. 25-4-10, 25-5-1 am'd.

Summary

SB150 clarifies that certain marketplace contractors are not employees of marketplace platforms if they meet specific written-agreement and operating criteria, and it repeals a prior related provision.

What This Bill Does

It adds definitions for marketplace contractors and marketplace platforms in Alabama's unemployment law. It allows a marketplace contractor to be treated as an independent contractor rather than an employee if the contractor and platform meet a set of criteria, including a written independent-contractor agreement, no hours prescribed by the platform, freedom to work with other platforms, ability to pursue other occupations, the contractor bearing most expenses, and no required platform-provided equipment (beyond safety or legal requirements). It also provides a transitional rule that services performed before August 1, 2022 can still be treated as independent contractor work if those criteria were met at the time. Additionally, it repeals Section 3 of Act 2021-6 (now 25-4-121) and sets the act’s effective date.

Who It Affects

• Marketplace contractors who use a marketplace platform to find and perform services, as they may be classified as independent contractors (not employees) if they meet the specified conditions.
• Marketplace platforms that connect with such contractors, since their terms of service must align with the criteria to avoid creating employee relationships.

Key Provisions

• Adds definitions of 'marketplace contractor' and 'marketplace platform' to Section 25-4-10, clarifying who is covered by the new rules.
• Establishes criteria (c.1–c.6) that must be met for a marketplace contractor to be considered an independent contractor: a written agreement stating independence; no unilateral hours prescribed; no restriction on using other platforms; no prohibition on other occupations; contractor bears most expenses; and no mandated equipment beyond safety or legal requirements.
• Provides a transitional rule that for services performed before August 1, 2022, the contractor shall be treated as an independent contractor if the criteria were met at that time.
• Repeals Section 3 of Act 2021-6 (now appearing as 25-4-121) related to the Department of Labor during a state of emergency.
• States the act becomes effective on the first day of the third month after passage/approval (June 1, 2022).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Labor