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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
qualified marketplace contractors; employment
Purpose
Specifies the requirements for termination of a contract between a qualified marketplace contractor and a qualified marketplace platform.
Background
A qualified marketplace contractor must be treated as an independent contractor for all purposes under state and local laws, regulations and ordinances if: 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; and 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. Statute outlines requirements of the written contract including that the contract and the association created by the contract may be terminated without cause by either party to the contract at any time on reasonable notice given to the other party.
A qualified marketplace contractor is any person or organization that enters into an agreement with a qualified marketplace platform to use the qualified marketplace platform's digital platform to provide goods or services to third-party individuals or entities seeking those services. A qualified marketplace platform is an organization that: 1) 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; and 2) accepts service requests from the public only through its digital website or smartphone application, and does not accept service requests by telephone, by facsimile or in person at physical retail locations (A.R.S. § 23-1603).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies that the contract and association created by the contract governing services performed by a qualified marketplace contractor may be terminated without cause:
a) at any time and on reasonable notice in which the contract expressly provides for termination by either party to the contract; or
b) unilaterally by a qualified marketplace contractor at any time on reasonable notice given to the other party.
2. Applies the contract requirements to any contract or addendum entered into after the effective date.
3. Makes technical changes.
4. Becomes effective on the general effective date.
COM 1/27/26 DP 10-0-0-1
3rd Read 2/9/26 59-0-1
Prepared by Senate Research
March 2, 2026
JT/HD/ci