January 23, 2022

Volume XII, Number 23

Advertisement
Advertisement

January 21, 2022

Subscribe to Latest Legal News and Analysis

January 20, 2022

Subscribe to Latest Legal News and Analysis
Advertisement

Seattle Independent Contractor Protections Ordinance

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.

Jackson Lewis P.C. © 2022National Law Review, Volume XI, Number 337
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Peter Nohle, Jackson Lewis Law Firm, Seattle, Labor and Employment Attorney
Principal

Peter H. Nohle is a Principal in the Seattle, Washington, office of Jackson Lewis P.C. His practice involves the regular representation of clients in state and federal court and before state and federal administrative agencies.

Mr. Nohle has represented a wide variety of clients in the retail, technology and media sectors. In addition to his traditional employment-related litigation practice, which includes the defense of sexual harassment, discrimination, wage and hour violation, FMLA compliance and wrongful termination...

206-626-6436
Sherry Talton Employment Attorney Seattle
Of Counsel

Sherry L. Talton is Of Counsel in the Seattle, Washington, office of Jackson Lewis P.C. She advises and represents employers in every stage of disputes, from risk management to trial and appeal.

Ms. Talton has a broad base of litigation, trial, and appellate experience in numerous state and federal courts across the nation. She has assisted employers to protect their trade secrets, combat wrongful competition, comply with wage and hour laws, enforce arbitration agreements and other employment contract provisions, and implement best recruiting, hiring, and...

206-626-6409
Advertisement
Advertisement
Advertisement