Seattle Independent Contractor Protections Ordinance

Jackson Lewis P.C.
Contact

In a growing trend of increasing workplace protections for independent contractors, the Seattle City Council has passed the “Independent Contractor Protections Ordinance,” aimed at increasing pay transparency for the ever-growing gig workforce. The Ordinance goes into effect September 1, 2022.

Businesses Covered

The Ordinance (SMC 14.34) broadly applies to “hiring entities,” which generally includes any person or entity that hires an independent contractor.

The city’s FAQs describe the law as applying to any hiring entities “regularly engaged in business or commercial activity,” including non-profits.

Workers Covered

“Independent contractor” is defined as “a person or entity composed of no more than one person, regardless of corporate form or method of organizing the person’s business that is hired by a hiring entity as a self-employed person or entity to provide services in exchange for compensation.”

However, the Ordinance excludes:

  • Lawyers;
  • Workers whose relationship with the hiring entity is limited to a property rental agreement (such as a hair stylist who rents a booth at a salon); and
  • Any other class of independent contractors that the Director of the Office of Labor Standards excludes through forthcoming rules.

Business Obligations

The Ordinance requires covered “hiring entities” to provide independent contractors with certain pre-contract disclosures or “the proposed terms and conditions of work.” These include:

  • Date;
  • Names of parties and contact information of the business;
  • Description and location of the work;
  • Compensation structure (e.g., pay rate, pay basis, tips/service charge distribution policy, reimbursements, deductions, fees, and charges); and
  • Pay schedule.

At the time of payment, required disclosures include many of the above items, as well as gross payment, specific deductions, and net payment after deductions.

Additionally, hiring entities must provide timely payment as required by the terms of a contract, the terms of the pre-contract disclosure, or within 30 days of contract performance.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jackson Lewis P.C. | Attorney Advertising

Written by:

Jackson Lewis P.C.
Contact
more
less

Jackson Lewis P.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.