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Chapter 0055 - 572R - H Ver of HB2310
House Engrossed
qualified marketplace
contractors; employment
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 55
HOUSE BILL 2310
AN
ACT
amending section 23-1603, arizona revised
statutes; relating to employment RELATIONSHIPS.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 23-1603, Arizona Revised
Statutes, is amended to read:
START_STATUTE
23-1603.
Qualified marketplace contractors; definitions
A. A qualified
marketplace contractor shall be treated as an independent contractor for all
purposes under state and local laws, regulations and ordinances, including
employment security laws prescribed in chapter 4 of this title and workers'
compensation laws prescribed in chapter 6 of this title, if all of the
following apply:
1. All or substantially
all of the payment for the services performed by the qualified marketplace
contractor is related to the performance of services or other output.
2. The services
performed by the qualified marketplace contractor are governed by a written
contract executed between the qualified marketplace contractor and a qualified
marketplace platform.
3. The written contract
required by paragraph 2 of this subsection provides for all of the following:
(a) That the qualified
marketplace contractor is providing services as an independent contractor and
not as an employee.
(b) That, pursuant to
paragraph 1 of this subsection, all or substantially all of the payment paid to
the
qualified marketplace
contractor shall be based on
the performance of services or other output.
(c) That the qualified
marketplace contractor is allowed to work any hours or schedules the qualified
marketplace contractor chooses.� If the qualified marketplace contractor elects
to work specified hours or schedules, a contract may require the qualified
marketplace contractor to perform work during the selected hours or schedules.
(d) That the qualified
marketplace contract does not restrict the
qualified marketplace
contractor's ability to perform services for other parties.
(e) That the qualified
marketplace contractor bears all or substantially all of the qualified
marketplace contractor's own expenses that are incurred by the qualified
marketplace contractor in performing the services.
(f) That the qualified
marketplace contractor is responsible for the taxes on the qualified
marketplace contractor's own income.
(g) That the contract
and the association created by the contract may be terminated without cause
at any time and on reasonable notice in which the contract expressly
provides for termination
by either party to the contract
.
or unilaterally by a qualified marketplace contractor
at any
time on reasonable notice given to the other party.
B. For services
performed by a qualified marketplace contractor before August 6, 2016, the
qualified marketplace contractor shall be treated as an independent contractor
for all purposes under state and local laws, regulations and ordinances, including
employment security laws prescribed in chapter 4 of this title and workers'
compensation laws prescribed in chapter 6 of this title, if both of the
following apply:
1. All or substantially
all of the payment for the services performed by the qualified marketplace
contractor is related to the performance of services or other output.
2. The services
performed by the qualified marketplace contractor are governed by a written
contract executed between the qualified marketplace contractor and a qualified
marketplace platform that conforms to the requirements of subsection A, paragraph
3 of this section.
C. Compliance with this
section is not mandatory in order to establish the existence of an independent
contractor relationship.� The exclusion of any contractor or digital platform
from this section does not create any presumptions and is not admissible to
deny the existence of an independent contractor relationship.
D. This section does not apply to:
1. Service performed in the employ of a state, or
any political subdivision of
the
a
state,
or in the employ of an Indian tribe, or any instrumentality of a state, any
political subdivision of a state or any Indian tribe that is wholly owned by
one or more states or political subdivisions or Indian tribes, provided that
such service is excluded from employment as defined in the federal unemployment
tax act (26 United States Code sections 3301
and
through 3311) solely by reason of 26 United States Code Section
3306(c)(7)
)
.
2. Service performed in
the employ of a religious, charitable, educational or other organization that
is excluded from employment as defined in the federal unemployment tax act (26
United States Code sections 3301 through 3311), solely by reason of 26 United
States Code section 3306(c)(8).
E. For the purposes of
this section:
1. "Qualified
marketplace contractor" means any person or organization, including an
individual, corporation, limited liability company, partnership, sole
proprietor
proprietorship
or other entity,
that enters into an agreement with a qualified marketplace platform to use the
qualified marketplace platform's digital platform to provide services to
third-party individuals or entities seeking those services.� Qualified
marketplace contractor does not include any contractor when the services
performed consist of transporting freight, sealed and closed envelopes, boxes
or parcels or other sealed and closed containers for compensation.
2. "Qualified
marketplace platform"
:
(
a
)
Means an organization, including
,
but not limited to,
a corporation, limited liability company,
partnership
,
or
sole
proprietor
proprietorship
or any other
entity, that both:
(a)
(
i
)
Operates a digital website or digital smartphone
application that facilitates the provision of services by qualified marketplace
contractors to individuals or entities seeking such services.
(b)
(
ii
)
Accepts service requests from the public only
through its digital website or digital smartphone application, and does not
accept service requests by telephone, by facsimile or in person at physical
retail locations.�
Qualified marketplace platform
(
b
)
Does
not include any digital website or smartphone application where the services
facilitated consist of transporting freight, sealed and closed envelopes, boxes
or parcels or other sealed and closed containers for compensation.
END_STATUTE
Sec. 2.
Applicability
This act applies to any contract or
addendum entered into from and after the effective date of this act.
APPROVED BY THE GOVERNOR APRIL 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 13, 2026.