S.F. 2257 Section 1. NEW SECTION . 93.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Governmental entity” means the same as defined in 4 section 96.19. 5 2. “Indian tribe” means the same as defined in section 6 96.19. 7 3. a. “Marketplace contractor” means a person or 8 organization, including an individual, corporation, limited 9 liability company, partnership, sole proprietor, or other 10 entity, that does all of the following: 11 (1) Enters into a written agreement with a marketplace 12 platform to use the marketplace platform’s digital network 13 to connect with individuals or entities that seek to obtain 14 services from the marketplace contractor. 15 (2) Performs services for individuals or entities upon 16 connection through a marketplace platform’s digital network in 17 exchange for compensation or payment of a fee. 18 (3) Does not perform the services offered by the marketplace 19 contractor at or from a physical business location that is 20 operated by the marketplace platform in the state. 21 b. “Marketplace contractor” does not include a person or 22 organization that performs services consisting of transporting 23 freight, sealed and closed envelopes, boxes, parcels, or other 24 sealed and closed containers for compensation. 25 4. “Marketplace platform” means a person or organization, 26 including an individual, corporation, limited liability 27 company, partnership, sole proprietor, or other entity, that 28 operates a digital network to connect marketplace contractors 29 to individuals or entities that seek to obtain the type of 30 services offered by marketplace contractors. 31 Sec. 2. NEW SECTION . 93.2 Marketplace contractors as 32 independent contractors —— retroactivity. 33 1. A marketplace contractor shall be treated as an 34 independent contractor, and not an employee of a marketplace 35 -1- LSB 5136SV (4) 87 gh/rn 1/ 4

S.F. 2257 platform, for all purposes under state or local law, including 1 but not limited to chapters 87 and 96, if the following 2 conditions are met: 3 a. The marketplace contractor and marketplace platform agree 4 in writing that the marketplace contractor is engaged as an 5 independent contractor and not an employee of the marketplace 6 platform. 7 b. The marketplace platform does not unilaterally prescribe 8 specific hours during which the marketplace contractor must 9 be available to accept service requests submitted through the 10 marketplace platform’s digital network. 11 c. The marketplace platform does not prohibit the 12 marketplace contractor from engaging in outside employment or 13 performing services through other marketplace platforms. 14 d. The marketplace contractor bears its own expenses 15 incurred in performing services. 16 2. For services performed by a marketplace contractor prior 17 to the effective date of this Act, a marketplace contractor 18 shall be treated as an independent contractor and not an 19 employee of a marketplace platform for all purposes under state 20 or local law, including but not limited to chapters 87 and 96, 21 if the conditions set forth in subsection 1 were satisfied at 22 the time the services were performed. 23 3. This section shall not apply to any of the following: 24 a. Services performed by an individual in the employ 25 of a governmental entity or Indian tribe, but only if the 26 services are excluded from employment as defined in the Federal 27 Unemployment Tax Act, 26 U.S.C. §3301-3311, solely by reason of 28 section 3306(c)(7) of that Act. 29 b. Services performed by an individual in the employ of a 30 religious, charitable, educational, or other organization, but 31 only if the services are excluded from employment as defined in 32 the Federal Unemployment Tax Act, 26 U.S.C. §3301-3311, solely 33 by reason of section 3306(c)(8) of that Act. 34 c. Services performed by a real estate broker or a real 35 -2- LSB 5136SV (4) 87 gh/rn 2/ 4

S.F. 2257 estate salesperson licensed pursuant to chapter 543B. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to marketplace contractors. 5 The bill defines “marketplace contractor” to mean a 6 person or entitythat enters into a written agreement with a 7 marketplace platform to use its digital network to connect 8 with individuals or entities that seek to obtain services 9 from the marketplace contractor, performs services for 10 individuals or entities upon connection through a marketplace 11 platform’s digital network for payment, and does not perform 12 the services at or from a physical business location operated 13 by the marketplace platform. “Marketplace contractor” 14 does not include a person or organization that transports 15 freight, sealed and closed envelopes, boxes, parcels, or other 16 sealed and closed containers for payment. The bill defines 17 “marketplace platform” to mean a person or entity that operates 18 a digital network to connect marketplace contractors to 19 individuals or entities seeking the type of services offered by 20 marketplace contractors. 21 The bill provides that a marketplace contractor shall be 22 treated as an independent contractor, and not an employee of 23 a marketplace platform, for all purposes under state or local 24 law, if the following conditions occur: the parties agree 25 in writing that the marketplace contractor is an independent 26 contractor and not an employee of the marketplace platform; the 27 marketplace platform does not unilaterally prescribe specific 28 hours during which the marketplace contractor must be available 29 to accept service requests; the marketplace platform does not 30 prohibit the marketplace contractor from engaging in outside 31 employment or performing services through other marketplace 32 platforms; and the marketplace contractor bears its own 33 expenses incurred in performing services. 34 The bill provides that for services performed by a 35 -3- LSB 5136SV (4) 87 gh/rn 3/ 4

S.F. 2257 marketplace contractor prior to the effective date of the bill, 1 a marketplace contractor shall be treated as an independent 2 contractor if the conditions set forth in the bill were 3 satisfied at the time the services were performed. 4 The bill specifies that the bill does not apply to services 5 performed by an individual in the employ of a government entity 6 or Indian tribe, as defined in the bill, services performed 7 by an individual in the employ of a religious, charitable, 8 educational, or other organization, but only if the services 9 are excluded from the definition of employment in the Federal 10 Unemployment Tax Act, or services performed by a licensed real 11 estate broker or real estate salesperson. 12 -4- LSB 5136SV (4) 87 gh/rn 4/ 4