SB150 Summary

• Amends Alabama's employment and workers' compensation law to exclude "marketplace contractors" from the definition of "employment" when they work through digital marketplace platforms that meet specified criteria.

• Defines a "marketplace contractor" as a person engaging with a marketplace platform through its digital network or mobile app to provide services, and a "marketplace platform" as an entity offering a digital network/app connecting contractors to service seekers or accepting requests exclusively through digital means (not by phone, fax, or in-person).

• Establishes six conditions that must be met for marketplace contractors to be classified as independent contractors rather than employees: written independent contractor agreement, no prescribed work hours, ability to use competing platforms, no occupational restrictions, contractor bears service expenses (excluding auto insurance), and no mandatory equipment provision.

• Applies the independent contractor classification retroactively to services performed before August 1, 2022, if the six conditions were met at the time services were performed.

• Repeals Section 25-4-121 (containing Department of Labor requirements during state emergencies) and becomes effective on the first day of the third month following passage and approval.