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7 LONG TITLE
8 General Description:
9 This bill amends Title 34, Labor in General, regarding the employment status of certain
10 workers.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ establishes that an on-demand labor contractor is not an employee of a labor
15 marketplace platform company if certain conditions are met;
16 ▸ establishes applicability; and
17 ▸ provides for severability.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 ENACTS:
24 34-53b-101, Utah Code Annotated 1953
25 34-53b-201, Utah Code Annotated 1953
26 34-53b-301, Utah Code Annotated 1953
27 34-53b-302, Utah Code Annotated 1953
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29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 34-53b-101 is enacted to read:
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33 34-53b-101. Definitions.
34 As used in this chapter:
35 (1) "Labor marketplace platform company" means an entity that uses an
36 Internet-connected software platform, including a mobile application:
37 (a) to connect an on-demand labor contractor with a person seeking an on-demand
38 labor service;
39 (b) through which a third party may request and pay for an on-demand labor service;
40 and
41 (c) through which an on-demand labor contractor may:
42 (i) (A) indicate the on-demand labor contractor's availability to perform an on-demand
43 labor service; or
44 (B) advertise an on-demand labor service;
45 (ii) communicate with or receive a communication from a person before, during, or
46 after the on-demand labor contractor performs an on-demand labor service for the person;
47 (iii) accept a request for an on-demand labor service from the entity or a third party;
48 and
49 (iv) receive payment from the entity or a third party for performing an on-demand labor
50 service.
51 (2) "On-demand labor contractor" means an individual who enters into an agreement
52 with a labor marketplace platform company to use the labor marketplace platform company's
53 software platform to:
54 (a) find an opportunity to perform an on-demand labor service for a person seeking an
55 on-demand labor service through the software platform; or
56 (b) advertise an on-demand labor service.
57 (3) (a) "On-demand labor service" means work:
58 (i) performed as a discrete task;
59 (ii) (A) performed sporadically; or
60 (B) that is of limited or finite duration; and
61 (iii) performed with some level of skill, regardless of whether the work is associated
62 with a specialized industry or trade.
63 (b) "On-demand labor service" includes work creating a custom-order product.
64 Section 2. Section 34-53b-201 is enacted to read:
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66 34-53b-201. Conditions under which an on-demand labor contractor is not an
67 employee of a labor marketplace platform company.
68 (1) An on-demand labor contractor is not an employee of a labor marketplace platform
69 company, if under the agreement between the on-demand labor contractor and the labor
70 marketplace platform company and in fact:
71 (a) all or substantially all of the on-demand labor services the on-demand labor
72 contractor performs under the agreement:
73 (i) are not for the labor marketplace platform company; and
74 (ii) are on an hourly per-job, or per-transaction basis;
75 (b) the labor marketplace platform company does not:
76 (i) prescribe specific hours during which the on-demand labor contractor must be
77 available to accept a request for an on-demand labor service;
78 (ii) schedule, control, or limit the on-demand labor contractor's working hours;
79 (iii) restrict the on-demand labor contractor from:
80 (A) engaging in another occupation or business; or
81 (B) accepting a request for an on-demand labor service through another labor
82 marketplace platform company or otherwise;
83 (iv) set or control:
84 (A) the rate or amount of pay the on-demand labor contractor receives for an
85 on-demand labor service;
86 (B) any working conditions while the on-demand labor contractor performs the
87 on-demand labor service; or
88 (C) the manner in which, method by which, or location at which the on-demand labor
89 contractor performs an on-demand labor service;
90 (v) require the on-demand labor contractor to:
91 (A) accept a request for an on-demand labor service; or
92 (B) perform an on-demand labor service; or
93 (vi) hire, fire, or discipline the on-demand labor contractor for any purpose;
94 (c) each on-demand labor service the on-demand labor contractor performs requires
95 specialized training or skill that the labor marketplace platform company does not provide the
96 on-demand labor contractor; and
97 (d) except for the use of the labor marketplace platform company's software platform,
98 the on-demand labor contractor is responsible for:
99 (i) the practical knowledge, skill, or expertise required to perform each on-demand
100 labor service; and
101 (ii) providing the necessary tools, materials, or equipment required to perform each
102 on-demand labor service.
103 (2) A labor marketplace company does not affect an on-demand labor contractor's
104 employment status under this chapter by:
105 (a) conducting a background screening on the on-demand labor contractor;
106 (b) facilitating payment to the on-demand labor contractor for an on-demand labor
107 service the on-demand labor contractor provides a third party;
108 (c) contracting with another person for the person to facilitate payment to the
109 on-demand labor contractor for an on-demand labor service the on-demand labor contractor
110 provides a third party; or
111 (d) collecting or withholding from the on-demand labor contractor:
112 (i) a transaction processing fee;
113 (ii) a tax a governmental entity imposes; or
114 (iii) a platform-use fee.
115 Section 3. Section 34-53b-301 is enacted to read:
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117 34-53b-301. Applicability.
118 Nothing in this chapter affects a person licensed or required to be licensed under Title
119 34, Chapter 29, Employment Agencies, as an employment agency.
120 Section 4. Section 34-53b-302 is enacted to read:
121 34-53b-302. Severability Clause.
122 (1) If a provision of this chapter or the application of a provision to a person or
123 circumstance is held invalid by a final decision of a court of competent jurisdiction, the
124 remainder of this chapter shall be given effect without the invalid provision or application.
125 (2) The provisions of this chapter are severable.