Labor standards

AN ACT Relating to strengthening Washington's labor standards; 1
amending RCW 49.46.010, 49.46.020, 49.46.180, 49.46.200, and 2
49.46.300; reenacting and amending RCW 49.46.210; adding new sections 3
to chapter 49.46 RCW; prescribing penalties; and providing an 4
effective date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 49.46.010 and 2024 c 132 s 1 are each amended to 7
read as follows: 8
As used in this chapter: 9
(1) "Department" means the department of labor and industries;10
(2) "Director" means the director of labor and industries or the 11
director's authorized representative; 12
(((2))) (3) "Employ" includes to permit to work;13
(((3))) (4) "Employee" includes any individual employed by an 14
employer but shall not include: 15
(a) Any individual (i) employed as a hand harvest laborer and 16
paid on a piece rate basis in an operation which has been, and is 17
generally and customarily recognized as having been, paid on a piece 18
rate basis in the region of employment; (ii) who commutes daily from 19
((his or her )) the individual's permanent residence to the farm on 20
which ((he or she )) the individual is employed; and (iii) who has 21
H-0991.1
HOUSE BILL 1764
State of Washington 69th Legislature 2025 Regular Session
By Representatives Mena, Berry, Fosse, Scott, Parshley, Salahuddin,
Ramel, Ormsby, Doglio, Pollet, Goodman, Macri, and Reed
Read first time 01/31/25. Referred to Committee on Labor & Workplace
Standards.
p. 1 HB 1764
been employed in agriculture less than ((thirteen)) 13 weeks during 1
the preceding calendar year; 2
(b) Any individual employed in casual labor in or about a private 3
home, unless performed in the course of the employer's trade, 4
business, or profession; 5
(c) Any individual employed in a bona fide executive, 6
administrative, or professional capacity or in the capacity of 7
outside salesperson as those terms are defined and delimited by rules 8
of the director. The terms as defined and delimited must require the 9
employer to provide paid vacation leave that is consistent with the 10
provisions in section 7 of this act, including the provisions that 11
establish the accrual rate and the employee's right to use paid 12
vacation leave. However, those terms shall be defined and delimited 13
by the human resources director pursuant to chapter 41.06 RCW for 14
employees employed under the director of personnel's jurisdiction;15
(d) Any individual engaged in the activities of an educational, 16
charitable, religious, state or local governmental body or agency, or 17
nonprofit organization where the employer-employee relationship does 18
not in fact exist or where the services are rendered to such 19
organizations gratuitously. If the individual receives reimbursement 20
in lieu of compensation for normally incurred out-of-pocket expenses 21
or receives a nominal amount of compensation per unit of voluntary 22
service rendered, an employer-employee relationship is deemed not to 23
exist for the purpose of this section or for purposes of membership 24
or qualification in any state, local government, or publicly 25
supported retirement system other than that provided under chapter 26
41.24 RCW; 27
(e) Any individual employed full time by any state or local 28
governmental body or agency who provides voluntary services but only 29
with regard to the provision of the voluntary services. The voluntary 30
services and any compensation therefor shall not affect or add to 31
qualification, entitlement, or benefit rights under any state, local 32
government, or publicly supported retirement system other than that 33
provided under chapter 41.24 RCW; 34
(f) Any newspaper vendor, carrier, or delivery person selling or 35
distributing newspapers on the street, to offices, to businesses, or 36
from house to house and any freelance news correspondent or 37
"stringer" who, using his or her own equipment, chooses to submit 38
material for publication for free or a fee when such material is 39
published; 40
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(g) Any carrier subject to regulation by Part 1 of the Interstate 1
Commerce Act; 2
(h) Any individual engaged in forest protection and fire 3
prevention activities; 4
(i) Any individual employed by any charitable institution charged 5
with child care responsibilities engaged primarily in the development 6
of character or citizenship or promoting health or physical fitness 7
or providing or sponsoring recreational opportunities or facilities 8
for young people or members of the armed forces of the United States;9
(j) Any individual whose duties require that ((he or she )) the 10
individual reside or sleep at the place of ((his or her )) the 11
individual's employment or who otherwise spends a substantial portion 12
of ((his or her)) the individual's work time subject to call, and not 13
engaged in the performance of active duties; 14
(k) Any resident, inmate, or patient of a state, county, or 15
municipal correctional, detention, treatment or rehabilitative 16
institution; 17
(l) Any individual who holds a public elective or appointive 18
office of the state, any county, city, town, municipal corporation or 19
quasi municipal corporation, political subdivision, or any 20
instrumentality thereof, or any employee of the state legislature;21
(m) All vessel operating crews of the Washington state ferries 22
operated by the department of transportation; 23
(n) Any individual employed as a seaman on a vessel other than an 24
American vessel; 25
(o) Any farm intern providing ((his or her )) the farm intern's 26
services to a small farm which has a special certificate issued under 27
RCW 49.12.471; 28
(p) An individual who is at least 16 years old but under 29
((twenty-one)) 21 years old, in ((his or her )) the individual's 30
capacity as a player for a junior ice hockey team that is a member of 31
a regional, national, or international league and that contracts with 32
an arena owned, operated, or managed by a public facilities district 33
created under chapter 36.100 RCW; or 34
(q) Any individual who has entered into a contract to play 35
baseball at the minor league level and who is compensated pursuant to 36
the terms of a collective bargaining agreement that expressly 37
provides for wages and working conditions; 38
(((4))) (5) "Employer" includes any individual, partnership, 39
association, corporation, business trust, or any person or group of 40
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persons acting directly or indirectly in the interest of an employer 1
in relation to an employee; 2
(((5))) (6)(a) "Family member" means a child, grandchild, 3
grandparent, parent, sibling, or spouse of an employee or driver, and 4
also includes any individual who regularly resides in the employee or 5
driver's home or where the relationship creates an expectation that 6
the employee or driver care for the person, and that individual 7
depends on the employee or driver for care. "Family member" includes 8
any individual who regularly resides in the employee or driver's 9
home, except that it does not include an individual who simply 10
resides in the same home with no expectation that the employee or 11
driver care for the individual.12
(b) For the purposes of this subsection, the following 13
definitions apply:14
(i) "Child" means a biological, adopted, or foster child, a 15
stepchild, a child's spouse, or a child to whom the employee or 16
driver stands in loco parentis, is a legal guardian, or is a de facto 17
parent, regardless of age or dependency status.18
(ii) "Grandchild" means a child of the employee or driver's 19
child.20
(iii) "Grandparent" means a parent of the employee or driver's 21
parent.22
(iv) "Parent" means the biological, adoptive, de facto, or foster 23
parent, stepparent, or legal guardian of an employee or driver or the 24
employee or driver's spouse, or an individual who stood in loco 25
parentis to an employee or driver when the employee or driver was a 26
child.27
(v) "Spouse" means a husband or wife, as the case may be, or 28
state registered domestic partner;29
(7) "Occupation" means any occupation, service, trade, business, 30
industry, or branch or group of industries or employment or class of 31
employment in which employees are gainfully employed;32
(((6))) (8) "Retail or service establishment" means an 33
establishment ((seventy-five)) 75 percent of whose annual dollar 34
volume of sales of goods or services, or both, is not for resale and 35
is recognized as retail sales or services in the particular industry;36
(((7))) (9) "Wage" means compensation due to an employee by 37
reason of employment, payable in legal tender of the United States or 38
checks on banks convertible into cash on demand at full face value, 39
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subject to such deductions, charges, or allowances as may be 1
permitted by rules of the director. 2
Sec. 2. RCW 49.46.020 and 2019 c 236 s 2 are each amended to 3
read as follows: 4
(1)(((a) Beginning January 1, 2017, and until January 1, 2018, 5
every employer shall pay to each of his or her employees who has 6
reached the age of eighteen years wages at a rate of not less than 7
eleven dollars per hour.8
(b) Beginning January 1, 2018, and until January 1, 2019, every 9
employer shall pay to each of his or her employees who has reached 10
the age of eighteen years wages at a rate of not less than eleven 11
dollars and fifty cents per hour.12
(c) Beginning January 1, 2019, and until January 1, 2020, every 13
employer shall pay to each of his or her employees who has reached 14
the age of eighteen years wages at a rate of not less than twelve 15
dollars per hour.16
(d) Beginning January 1, 2020, and until January 1, 2021, every 17
employer shall pay to each of his or her employees who has reached 18
the age of eighteen years wages at a rate of not less than thirteen 19
dollars and fifty cents per hour. )) Every employer shall pay to each 20
of the employer's employees who has reached the age of 18 years wages 21
at a rate of not less than the following during the following dates:22
23 Dates: Rate per hour:
24
25
Beginning January 1, 2026,
until January 1, 2027
$17.50
26
27
Beginning January 1, 2027,
until January 1, 2028
$19.00
28
29
Beginning January 1, 2028,
until January 1, 2029
$20.50
30
31
Beginning January 1, 2029,
until January 1, 2030
$22.00
32
33
Beginning January 1, 2030,
until January 1, 2031
$23.50
34
35
Beginning January 1, 2031,
until January 1, 2032
$25.00
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(2)(a) Beginning on January 1, ((2021)) 2032, and each following 1
January 1st as set forth under (b) of this subsection, every employer 2
shall pay to each of ((his or her )) the employer's employees who has 3
reached the age of ((eighteen)) 18 years wages at a rate of not less 4
than the amount established under (b) of this subsection.5
(b) On September 30, ((2020)) 2031, and on each following 6
September 30th, the department ((of labor and industries )) shall 7
calculate an adjusted minimum wage rate to maintain employee 8
purchasing power by increasing the current year's minimum wage rate 9
by the rate of inflation. The adjusted minimum wage rate shall be 10
calculated to the nearest cent using the consumer price index for 11
urban wage earners and clerical workers, CPI-W, or a successor index, 12
for the ((twelve)) 12 months prior to each September 1st as 13
calculated by the United States department of labor. Each adjusted 14
minimum wage rate calculated under this subsection (2)(b) takes 15
effect on the following January 1st. 16
(3) ((An)) Regardless of whether a local government establishes a 17
minimum wage rate that is higher than required under this chapter, an 18
employer must pay to its employees: (a) All tips and gratuities; and 19
(b) all service charges as defined under RCW 49.46.160 except those 20
that, pursuant to RCW 49.46.160, are itemized as not being payable to 21
the employee or employees servicing the customer. Tips and service 22
charges paid to an employee are in addition to, and may not count 23
towards, the employee's hourly minimum wage required by this section 24
or a local government. 25
(4) Beginning January 1, 2018, except as provided in RCW 26
49.46.180, every employer must provide to each of its employees paid 27
sick leave as provided in RCW 49.46.200 and 49.46.210.28
(5) Beginning January 1, 2027, except as provided in RCW 29
49.46.180 as amended by chapter . . ., Laws of 2025 (this act), every 30
employer must provide to each of its employees paid vacation leave as 31
provided in section 7 of this act.32
(6) Beginning January 1, 2027, except as provided in RCW 33
49.46.180 as amended by chapter . . ., Laws of 2025 (this act), every 34
employer must provide to each of its employees paid bereavement leave 35
as provided in section 8 of this act.36
(7) The director shall by regulation establish the minimum wage 37
for employees under the age of ((eighteen)) 18 years.38
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NEW SECTION. Sec. 3. A new section is added to chapter 49.46 1
RCW to read as follows: 2
(1) If the director determines that an employer has violated this 3
act, the department may issue a stop work order to cease all business 4
operations at every site where the violation has occurred.5
(2) Employers must pay employees normal hourly compensation for 6
all hours they would have been regularly scheduled to work during the 7
stop work period. This requirement is a wage payment requirement 8
under RCW 49.48.082. 9
(3) A stop work order issued under this section remains in effect 10
until the director issues an order releasing the stop work order upon 11
finding that the employer has paid any amounts owed to the employees, 12
including interest, and any penalties due. 13
(4) As a condition for release from a stop work order, the 14
director may require the employer to file with the department 15
periodic reports for a probationary period that demonstrate the 16
employer's continued compliance with the provisions of this act. Any 17
probationary period may not exceed two years. 18
(5)(a) The director may assess a civil penalty of not more than 19
$5,000 per day against an employer for each day that the employer 20
conducts business operations that violate the stop work order.21
(b) The department may adopt by rule penalty amounts under this 22
subsection that vary by the size of the employer. 23
(c) On September 30, 2028, and on each following September 30th, 24
the department of labor and industries shall calculate adjusted 25
penalties payable pursuant to this section by increasing the current 26
year's penalties by the rate of inflation. The penalties must be 27
calculated to the nearest cent using the consumer price index for 28
urban wage earners and clerical workers, CPI-W, or a successor index, 29
for the 12 months prior to each September 1st as calculated by the 30
United States department of labor. The adjusted penalties calculated 31
under this subsection (5)(c) take effect on the following January 32
1st. 33
(6) An employer may contest a stop work order within 72 hours of 34
the issuance of the stop work order by filing a petition for judicial 35
review to superior court. Upon the filing of any such petition, the 36
superior courts of the state of Washington have jurisdiction to issue 37
a temporary stay of the stop work order pending further agency 38
action. The court may not grant a temporary stay unless the employer 39
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meets its burden to show such a stay is appropriate under RCW 1
34.05.550. 2
Sec. 4. RCW 49.46.180 and 2023 c 267 s 2 are each amended to 3
read as follows: 4
(1) The ((sick leave provisions of RCW 49.46.200 through 5
49.46.830)) sick, vacation, and bereavement leave provisions of this 6
chapter shall not apply to construction workers covered by a 7
collective bargaining agreement, provided: 8
(a) The union signatory to the collective bargaining agreement is 9
an approved referral union program authorized under RCW 50.20.010 and 10
in compliance with WAC 192-210-110; and 11
(b) The collective bargaining agreement establishes equivalent 12
((sick)) or better sick, vacation, and bereavement leave provisions, 13
as provided in subsection (2) of this section; and14
(c) The requirements of ((RCW 49.46.200 through 49.46.830)) the 15
sick, vacation, and bereavement leave provisions of this chapter are 16
expressly waived in the collective bargaining agreement in clear and 17
unambiguous terms or in an addendum to an existing agreement 18
including an agreement that is open for negotiation provided the 19
((sick)) relevant leave portions were previously ratified by the 20
membership. 21
(2) Equivalent ((sick)) leave provisions provided by a collective 22
bargaining agreement must meet the requirements of ((RCW 49.46.200 23
through 49.46.830)) the sick, vacation, and bereavement leave 24
provisions of this chapter and the rules adopted by the department 25
((of labor and industries )), except the payment of leave at the 26
normal hourly compensation may occur before usage and the payment of 27
accrued and unused ((sick)) leave may be made in accordance with RCW 28
49.46.210. 29
Sec. 5. RCW 49.46.200 and 2017 c 2 s 4 are each amended to read 30
as follows: 31
The demands of the workplace and of families need to be balanced 32
to promote public health, individual health, family stability, 33
sustainable working habits, and economic security. It is in the 34
public interest to provide reasonable paid ((sick)) leave for 35
employees to care for the health of themselves and their families. 36
Such paid ((sick)) leave shall be provided at the greater of the 37
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newly increased minimum wage or the employee's regular and normal 1
wage. 2
Sec. 6. RCW 49.46.210 and 2024 c 356 s 1 and 2024 c 39 s 1 are 3
each reenacted and amended to read as follows: 4
(((1))) Beginning January 1, 2018, except as provided in RCW 5
49.46.180, every employer shall provide each of its employees paid 6
sick leave as follows: 7
(((a))) (1) An employee shall accrue at least one hour of paid 8
sick leave for every ((forty)) 40 hours worked as an employee. An 9
employer may provide paid sick leave in advance of accrual provided 10
that such front-loading meets or exceeds the requirements of this 11
section for accrual, use, and carryover of paid sick leave.12
(((b))) (2) An employee is authorized to use paid sick leave for 13
the following reasons: 14
(((i))) (a) An absence resulting from an employee's mental or 15
physical illness, injury, or health condition; to accommodate the 16
employee's need for medical diagnosis, care, or treatment of a mental 17
or physical illness, injury, or health condition; or an employee's 18
need for preventive medical care; 19
(((ii))) (b) To allow the employee to provide care for a family 20
member with a mental or physical illness, injury, or health 21
condition; care of a family member who needs medical diagnosis, care, 22
or treatment of a mental or physical illness, injury, or health 23
condition; or care for a family member who needs preventive medical 24
care; and 25
(((iii))) (c) When the employee's place of business has been 26
closed by order of a public official for any health-related reason, 27
or when an employee's child's school or place of care has been closed 28
for such a health-related reason or after the declaration of an 29
emergency by a local or state government or agency, or by the federal 30
government. 31
(((c))) (3) An employee is authorized to use paid sick leave for 32
absences that qualify for leave under the domestic violence leave 33
act, chapter 49.76 RCW. 34
(((d))) (4) An employee is entitled to use accrued paid sick 35
leave beginning on the ninetieth calendar day after the commencement 36
of ((his or her)) the employee's employment. 37
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(((e))) (5) Employers are not prevented from providing more 1
generous paid sick leave policies or permitting use of paid sick 2
leave for additional purposes. 3
(((f))) (6) An employer may require employees to give reasonable 4
notice of an absence from work, so long as such notice does not 5
interfere with an employee's lawful use of paid sick leave.6
(((g))) (7) For absences exceeding three days, an employer may 7
require verification that an employee's use of paid sick leave is for 8
an authorized purpose. If an employer requires verification, 9
verification must be provided to the employer within a reasonable 10
time period during or after the leave. An employer's requirements for 11
verification may not result in an unreasonable burden or expense on 12
the employee and may not exceed privacy or verification requirements 13
otherwise established by law. 14
(((h))) (8) An employer may not require, as a condition of an 15
employee taking paid sick leave, that the employee search for or find 16
a replacement worker to cover the hours during which the employee is 17
on paid sick leave. 18
(((i))) (9) For each hour of paid sick leave used, an employee 19
shall be paid the greater of the minimum hourly wage rate established 20
in this chapter or ((his or her )) the employee's normal hourly 21
compensation. The employer is responsible for providing regular 22
notification to employees about the amount of paid sick leave 23
available to the employee. 24
(((j))) (10) Except as provided in (((l) of this )) subsection 25
(12) of this section, accrued and unused paid sick leave carries over 26
to the following year, but an employer is not required to allow an 27
employee to carry over paid sick leave in excess of 40 hours.28
(((k))) (11) Except as provided in (((l) of this )) subsection 29
(12) of this section , an employer is not required to provide 30
financial or other reimbursement for accrued and unused paid sick 31
leave to any employee upon the employee's termination, resignation, 32
retirement, or other separation from employment. When there is a 33
separation from employment and the employee is rehired within 12 34
months of separation by the same employer, whether at the same or a 35
different business location of the employer, previously accrued 36
unused paid sick leave shall be reinstated and the previous period of 37
employment shall be counted for purposes of determining the 38
employee's eligibility to use paid sick leave under (((d) of this )) 39
subsection (4) of this section . For purposes of this subsection 40
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(((1)(k))), "previously accrued and unused paid sick leave" does not 1
include sick leave paid out to a construction worker under (((l) of 2
this)) subsection (12) of this section. 3
(((l)(i))) (12)(a) A construction industry employer must pay a 4
construction worker, who has not met the 90th day eligibility under 5
(((d) of this )) subsection (4) of this section at the time of 6
separation, the balance of the worker's accrued and unused paid sick 7
leave at the end of the established pay period following the worker's 8
separation pursuant to RCW 49.48.010(2). 9
(((ii))) (b) The definitions in this subsection (((1)(l)(ii))) 10
(12)(b) apply throughout this subsection (((1)(l))) unless the 11
context clearly requires otherwise. 12
(((A))) (i) "Construction worker" means a worker who performed 13
service, maintenance, or construction work on a jobsite, in the field 14
or in a fabrication shop using the tools of the worker's trade or 15
craft. 16
(((B))) (ii) "Construction industry employer" means an employer 17
in the industry described in North American industry classification 18
system industry code 23, except for residential building construction 19
code 2361. 20
(((2) The definitions in this subsection apply throughout this 21
section, except for subsection (5) of this section:22
(a) "Family member" means a child, grandchild, grandparent, 23
parent, sibling, or spouse of an employee, and also includes any 24
individual who regularly resides in the employee's home or where the 25
relationship creates an expectation that the employee care for the 26
person, and that individual depends on the employee for care. "Family 27
member" includes any individual who regularly resides in the 28
employee's home, except that it does not include an individual who 29
simply resides in the same home with no expectation that the employee 30
care for the individual.31
(b) "Child" means a biological, adopted, or foster child, a 32
stepchild, a child's spouse, or a child to whom the employee stands 33
in loco parentis, is a legal guardian, or is a de facto parent, 34
regardless of age or dependency status.35
(c) "Grandchild" means a child of the employee's child.36
(d) "Grandparent" means a parent of the employee's parent.37
(e) "Parent" means the biological, adoptive, de facto, or foster 38
parent, stepparent, or legal guardian of an employee or the 39
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employee's spouse, or an individual who stood in loco parentis to an 1
employee when the employee was a child. 2
(f) "Spouse" means a husband or wife, as the case may be, or 3
state registered domestic partner.4
(3) An employer may not adopt or enforce any policy that counts 5
the use of paid sick leave time as an absence that may lead to or 6
result in discipline against the employee.7
(4) An employer may not discriminate or retaliate against an 8
employee for his or her exercise of any rights under this chapter 9
including the use of paid sick leave.10
(5)(a) The definitions in this subsection apply to this 11
subsection:12
(i) "Average hourly compensation" means a driver's compensation 13
during passenger platform time from, or facilitated by, the 14
transportation network company, during the 365 days immediately prior 15
to the day that paid sick time is used, divided by the total hours of 16
passenger platform time worked by the driver on that transportation 17
network company's driver platform during that period. "Average hourly 18
compensation" does not include tips.19
(ii) "Driver," "driver platform," "passenger platform time," and 20
"transportation network company" have the meanings provided in RCW 21
49.46.300.22
(iii) "Earned paid sick time" is the time provided by a 23
transportation network company to a driver as calculated under this 24
subsection. For each hour of earned paid sick time used by a driver, 25
the transportation network company shall compensate the driver at a 26
rate equal to the driver's average hourly compensation.27
(iv) For purposes of drivers, the following definitions apply:28
(A) "Family member" means a child, grandchild, grandparent, 29
parent, sibling, or spouse of a driver, and also includes any 30
individual who regularly resides in the driver's home or where the 31
relationship creates an expectation that the driver care for the 32
person, and that individual depends on the driver for care. "Family 33
member" includes any individual who regularly resides in the driver's 34
home, except that it does not include an individual who simply 35
resides in the same home with no expectation that the driver care for 36
the individual.37
(B) "Child" means a biological, adopted, or foster child, a 38
stepchild, a child's spouse, or a child to whom the driver stands in 39
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loco parentis, is a legal guardian, or is a de facto parent, 1
regardless of age or dependency status. 2
(C) "Grandchild" means a child of the driver's child.3
(D) "Grandparent" means a parent of the driver's parent.4
(E) "Parent" means the biological, adoptive, de facto, or foster 5
parent, stepparent, or legal guardian of a driver or the driver's 6
spouse, or an individual who stood in loco parentis to a driver when 7
the driver was a child.8
(F) "Spouse" means a husband or wife, as the case may be, or 9
state registered domestic partner.10
(b) Beginning January 1, 2023, a transportation network company 11
must provide to each driver operating on its driver platform 12
compensation for earned paid sick time as required by this subsection 13
and subject to the provisions of this subsection. A driver shall 14
accrue one hour of earned paid sick time for every 40 hours of 15
passenger platform time worked.16
(c) A driver is entitled to use accrued earned paid sick time 17
upon recording 90 hours of passenger platform time on the 18
transportation network company's driver platform.19
(d) For each hour of earned paid sick time used, a driver shall 20
be paid the driver's average hourly compensation.21
(e) A transportation network company shall establish an 22
accessible system for drivers to request and use earned paid sick 23
time. The system must be available to drivers via smartphone 24
application and online web portal.25
(f) A driver may carry over up to 40 hours of unused earned paid 26
sick time to the next calendar year. If a driver carries over unused 27
earned paid sick time to the following year, accrual of earned paid 28
sick time in the subsequent year must be in addition to the hours 29
accrued in the previous year and carried over.30
(g) A driver is entitled to use accrued earned paid sick time if 31
the driver has used the transportation network company's platform as 32
a driver within 90 calendar days preceding the driver's request to 33
use earned paid sick time.34
(h) A driver is entitled to use earned paid sick time for the 35
following reasons:36
(i) An absence resulting from the driver's mental or physical 37
illness, injury, or health condition; to accommodate the driver's 38
need for medical diagnosis, care, or treatment of a mental or 39
p. 13 HB 1764
physical illness, injury, or health condition; or an employee's need 1
for preventive medical care; 2
(ii) To allow the driver to provide care for a family member with 3
a mental or physical illness, injury, or health condition; care of a 4
family member who needs medical diagnosis, care, or treatment of a 5
mental or physical illness, injury, or health condition; or care for 6
a family member who needs preventive medical care;7
(iii) When the driver's child's school or place of care has been 8
closed by order of a public official for any health-related reason or 9
has been closed after the declaration of an emergency by a local or 10
state government or agency, or by the federal government;11
(iv) For absences for which an employee would be entitled for 12
leave under RCW 49.76.030; and13
(v) During a deactivation or other status that prevents the 14
driver from performing network services on the transportation network 15
company's platform, unless the deactivation or status is due to a 16
verified allegation of sexual assault or physical assault perpetrated 17
by the driver.18
(i) If a driver does not record any passenger platform time in a 19
transportation network company's driver platform for 365 or more 20
consecutive days, any unused earned paid sick time accrued up to that 21
point with that transportation network company is no longer valid or 22
recognized.23
(j) Drivers may use accrued days of earned paid sick time in 24
increments of a minimum of four or more hours. Drivers are entitled 25
to request four or more hours of earned paid sick time for immediate 26
use, including consecutive days of use. Drivers are not entitled to 27
use more than eight hours of earned paid sick time within a single 28
calendar day.29
(k) A transportation network company shall compensate a driver 30
for requested hours or days of earned paid sick time no later than 14 31
calendar days or the next regularly scheduled date of compensation 32
following the requested hours or days of earned paid sick time.33
(l) A transportation network company shall not request or require 34
reasonable verification of a driver's qualifying illness except as 35
would be permitted to be requested of an employee under subsection 36
(1)(g) of this section. If a transportation network company requires 37
verification pursuant to this subsection, the transportation network 38
company must compensate the driver for the requested hours or days of 39
earned paid sick time no later than the driver's next regularly 40
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scheduled date of compensation after satisfactory verification is 1
provided. 2
(m) If a driver accepts an offer of prearranged services for 3
compensation from a transportation network company during the four-4
hour period or periods for which the driver requested earned paid 5
sick time, a transportation network company may determine that the 6
driver did not use earned paid sick time for an authorized purpose.7
(n) A transportation network company shall provide each driver 8
with:9
(i) Written notification of the current rate of average hourly 10
compensation while a passenger is in the vehicle during the most 11
recent calendar month for use of earned paid sick time;12
(ii) An updated amount of accrued earned paid sick time since the 13
last notification;14
(iii) Reduced earned paid sick time since the last notification;15
(iv) Any unused earned paid sick time available for use; and16
(v) Any amount that the transportation network company may 17
subtract from the driver's compensation for earned paid sick time. 18
The transportation network company shall provide this information to 19
the driver no less than monthly. The transportation network company 20
may choose a reasonable system for providing this notification, 21
including but not limited to: A pay stub; a weekly summary of 22
compensation information; or an online system where drivers can 23
access their own earned paid sick time information. A transportation 24
network company is not required to provide this information to a 25
driver if the driver has not worked any days since the last 26
notification.27
(o) A transportation network company may not adopt or enforce any 28
policy that counts the use of earned paid sick time as an absence 29
that may lead to or result in any action that adversely affects the 30
driver's use of the transportation network.31
(p) A transportation network company may not take any action 32
against a driver that adversely affects the driver's use of the 33
transportation network due to his or her exercise of any rights under 34
this subsection including the use of earned paid sick time.35
(q) The department may adopt rules to implement this 36
subsection.))37
NEW SECTION. Sec. 7. A new section is added to chapter 49.46 38
RCW to read as follows: 39
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Except as provided in RCW 49.46.180, every employer shall provide 1
each of its employees paid vacation leave as follows:2
(1) An employee shall accrue at least 2.3 hours of paid vacation 3
leave for every 40 hours worked as an employee. An employer may 4
provide paid vacation leave in advance of accrual provided that such 5
front-loading meets or exceeds the requirements of this section for 6
accrual, use, and carryover of paid vacation leave.7
(2) An employee is entitled to use accrued paid vacation leave 8
for any purpose beginning on the 90th calendar day after the 9
commencement of their employment. 10
(3) Employers are not prevented from providing more generous paid 11
vacation leave policies. 12
(4) An employer may require employees to give reasonable notice 13
of an absence from work, so long as such notice does not interfere 14
with an employee's lawful use of paid vacation leave.15
(5) An employer may not require, as a condition of an employee 16
taking paid vacation leave, that the employee search for or find a 17
replacement worker to cover the hours during which the employee is on 18
paid vacation leave. 19
(6) For each hour of paid vacation leave used, an employee shall 20
be paid the greater of the minimum hourly wage rate established in 21
this chapter or the employee's normal hourly compensation. The 22
employer is responsible for providing regular notification to 23
employees about the amount of paid vacation leave available to the 24
employee. 25
(7) Except as provided in subsection (9) of this section, accrued 26
and unused paid vacation leave carries over to the following year, 27
but an employer is not required to allow an employee to carry over 28
paid vacation leave in excess of 40 hours. 29
(8) Except as provided in subsection (9) of this section, an 30
employer is not required to provide financial or other reimbursement 31
for accrued and unused paid vacation leave to any employee upon the 32
employee's termination, resignation, retirement, or other separation 33
from employment. When there is a separation from employment and the 34
employee is rehired within 12 months of separation by the same 35
employer, whether at the same or a different business location of the 36
employer, previously accrued unused paid vacation leave shall be 37
reinstated and the previous period of employment shall be counted for 38
purposes of determining the employee's eligibility to use paid 39
vacation leave under subsection (2) of this section. For purposes of 40
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this subsection (8), "previously accrued and unused paid vacation 1
leave" does not include vacation leave paid out to a construction 2
worker under subsection (9) of this section. 3
(9)(a) A construction industry employer must pay a construction 4
worker, who has not met the 90th day eligibility under subsection (2) 5
of this section at the time of separation, the balance of the 6
worker's accrued and unused paid vacation leave at the end of the 7
established pay period following the worker's separation pursuant to 8
RCW 49.48.010(2). 9
(b) For the purposes of this section, "construction worker" and 10
"construction industry employer" have the same meanings as provided 11
in RCW 49.46.210. 12
(10) The department shall adopt rules regarding the required 13
notice under subsection (4) of this section, combined paid time off 14
leave banks, and circumstances when an employer may deny an 15
employee's use of vacation leave. 16
NEW SECTION. Sec. 8. A new section is added to chapter 49.46 17
RCW to read as follows: 18
(1) Beginning on the 90th calendar day after the commencement of 19
an employee's employment, the employee is entitled to at least five 20
days of paid bereavement leave per calendar year if an employee's 21
family member dies. 22
(2) Employers are not prevented from providing more generous 23
bereavement leave policies or to allow employees to take additional 24
leave without pay for purposes of bereavement. 25
(3) An employer may not require an employee to take paid 26
bereavement leave on consecutive days. 27
(4) For each day of paid bereavement leave used, an employee 28
shall be paid the greater of the minimum hourly wage rate established 29
in this chapter or the employee's normal hourly compensation.30
(5)(a) An employer may require verification of the family 31
member's death. 32
(b) Employer-required verification may not result in an 33
unreasonable burden or expense on the employee. 34
(c) If an employer requires verification for the use of 35
bereavement leave, the employer must have a written policy or a 36
collective bargaining agreement outlining any such requirements. The 37
employer must notify the employee of such policy or agreement, 38
including the employee's right to assert that the verification 39
p. 17 HB 1764
requirement results in an unreasonable burden or expense on the 1
employee, prior to requiring the employee to provide verification. An 2
employer must make this information readily available to all 3
employees. 4
NEW SECTION. Sec. 9. A new section is added to chapter 49.46 5
RCW to read as follows: 6
(1) An employer may not adopt or enforce any policy that counts 7
the use of paid leave required under this chapter as an absence that 8
may lead to or result in discipline against the employee.9
(2) An employer may not discriminate or retaliate against an 10
employee for the employee's exercise of any rights under this chapter 11
including the use of paid leave required under RCW 49.46.210 or 12
section 7 or 8 of this act. 13
Sec. 10. RCW 49.46.300 and 2022 c 281 s 1 are each amended to 14
read as follows: 15
(((1))) The definitions in this ((subsection)) section apply 16
throughout this section and RCW 49.46.310 through 49.46.350 and 17
sections 11 through 15 of this act unless the context clearly 18
requires otherwise. 19
(((a))) (1) "Account deactivation" means one or more of the 20
following actions with respect to an individual driver or group of 21
drivers that is implemented by a transportation network company and 22
lasts for more than three consecutive days: 23
(((i))) (a) Blocking access to the transportation network company 24
driver platform; 25
(((ii))) (b) Changing a driver's status from eligible to provide 26
transportation network company services to ineligible; or27
(((iii))) (c) Any other material restriction in access to the 28
transportation network company's driver platform. 29
(((b))) (2) "Compensation" means payment owed to a driver by 30
reason of providing network services including, but not limited to, 31
the minimum payment for passenger platform time and mileage, 32
incentives, and tips. 33
(((c) "Department" means the department of labor and industries.34
(d))) (3) "Digital network" means any online-enabled application, 35
website, or system offered or used by a transportation network 36
company that enables the prearrangement of rides between drivers and 37
passengers. 38
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(((e) "Director" means the director of the department of labor 1
and industries.2
(f))) (4) "Dispatch location" means the location of the driver at 3
the time the driver accepts a trip request through the driver 4
platform. 5
(((g))) (5) "Dispatch platform time" means the time a driver 6
spends traveling from a dispatch location to a passenger pick-up 7
location. Dispatch platform time ends when a passenger cancels a trip 8
or the driver begins the trip through the driver platform. A driver 9
cannot simultaneously be engaged in dispatch platform time and 10
passenger platform time for the same transportation network company. 11
For shared rides, dispatch platform time means the time a driver 12
spends traveling from the first dispatch location to the first 13
passenger pick-up location. 14
(((h))) (6) "Dispatched trip" means the provision of 15
transportation by a driver for a passenger through the use of a 16
transportation network company's application dispatch system.17
(((i))) (7) "Driver" has the same meaning as "commercial 18
transportation services provider driver" in RCW 48.177.005. Except as 19
otherwise specified in chapter 281, Laws of 2022, for purposes of 20
this title and Titles 48, 50A, 50B, and 51 RCW, and any orders, 21
regulations, administrative policies, or opinions of any state or 22
local agency, board, division, or commission, pursuant to those 23
titles, a driver is not an employee or agent of a transportation 24
network company if the following factors are met: 25
(((i))) (a) The transportation network company does not 26
unilaterally prescribe specific dates, times of day, or a minimum 27
number of hours during which the driver must be logged into the 28
transportation network company's online-enabled application or 29
platform; 30
(((ii))) (b) The transportation network company may not terminate 31
the contract of the driver for not accepting a specific 32
transportation service request; 33
(((iii))) (c) The transportation network company does not 34
contractually prohibit the driver from performing services through 35
other transportation network companies except while performing 36
services through the transportation network company's online-enabled 37
application or platform during dispatch platform time and passenger 38
platform time; ((and39
p. 19 HB 1764
(iv))) (d) The transportation network company does not 1
contractually prohibit the driver from working in any other lawful 2
occupation or business((.));3
(e) Notwithstanding any state or local law to the contrary, any 4
party seeking to establish that the factors in this subsection 5
(((1)(i))) (7) are not met bears the burden of proof((.)); and6
(f) A driver for purposes of this section shall not include any 7
person ultimately and finally determined to be an "employee" within 8
the meaning of section 2 (3) of the national labor relations act, 29 9
U.S.C. Sec. 152(3). 10
(((j))) (8) "Driver platform" means the driver-facing application 11
dispatch system software or any online-enabled application service, 12
website, or system, used by a driver, or which enables services to be 13
delivered to a driver that enables the prearrangement of passenger 14
trips for compensation. 15
(((k))) (9) "Driver resource center" or "center" means a 16
nonprofit organization that provides services to drivers. The 17
nonprofit organization must be registered with the Washington 18
secretary of state, have organizational bylaws giving drivers right 19
to membership in the organization, and have demonstrated experience: 20
(i) Providing services to gig economy drivers in Washington state, 21
including representing drivers in deactivation appeals proceedings; 22
and (ii) providing culturally competent driver representation 23
services, outreach, and education. The administration and formation 24
of the driver resource center may not be funded, excessively 25
influenced, or controlled by a transportation network company.26
(((l))) (10) "Driver resource center fund" or "fund" means the 27
dedicated fund created in RCW 49.46.310, the sole purpose of which is 28
to administer funds collected from transportation network companies 29
to provide services, support, and benefits to drivers.30
(((m))) (11) "Network services" means services related to the 31
transportation of passengers through the driver platform that are 32
provided by a driver while logged in to the driver platform, 33
including services provided during available platform time, dispatch 34
platform time, and passenger platform time. 35
(((n))) (12) "Passenger" has the same meaning as "commercial 36
transportation services provider passenger" in RCW 48.177.005.37
(((o))) (13) "Passenger drop-off location" means the location of 38
a driver's vehicle when the passenger leaves the vehicle.39
p. 20 HB 1764
(((p))) (14) "Passenger pick-up location" means the location of 1
the driver's vehicle at the time the driver starts the trip in the 2
driver platform. 3
(((q))) (15) "Passenger platform miles" means all miles driven 4
during passenger platform time as recorded in a transportation 5
network company's driver platform. 6
(((r))) (16) "Passenger platform time" means the period of time 7
when the driver is transporting one or more passengers on a trip. For 8
shared rides, passenger platform time means the period of time 9
commencing when the first passenger enters the driver's vehicle until 10
the time when the last passenger exits the driver's vehicle.11
(((s))) (17) "Personal vehicle" has the same meaning as "personal 12
vehicle" in RCW 48.177.005. 13
(((t))) (18) "Shared ride" means a dispatched trip which, prior 14
to its commencement, a passenger requests through the transportation 15
network company's digital network to share the dispatched trip with 16
one or more passengers and each passenger is charged a fare that is 17
calculated, in whole or in part, based on the passenger's request to 18
share all or a part of the dispatched trip with one or more 19
passengers, regardless of whether the passenger actually shares all 20
or a part of the dispatched trip. 21
(((u))) (19) "Tips" means a verifiable sum to be presented by a 22
passenger as a gift or gratuity in recognition of service performed 23
for the passenger by the driver receiving the tip.24
(((v))) (20) "Transportation network company" has the same 25
meaning as defined in RCW 46.04.652. A transportation network company 26
does not provide for hire transportation service. 27
(((2) A driver is only covered by this section to the extent that 28
the driver provides network services within the state of Washington.29
(3)(a) A transportation network company is covered by this 30
section if it provides a driver platform within the state of 31
Washington.32
(b) Separate entities that form an integrated enterprise are 33
considered a single transportation network company under this 34
section. Separate entities will be considered an integrated 35
enterprise and a single transportation network company where a 36
separate entity controls the operation of another entity. Factors to 37
consider include, but are not limited to, the degree of interrelation 38
between the operations of multiple entities; the degree to which the 39
entities share common management; the centralized control of labor 40
p. 21 HB 1764
relations; the degree of common ownership or financial control over 1
the entities; and the use of a common brand, trade, business, or 2
operating name. 3
(4)(a) Beginning December 31, 2022, a transportation network 4
company shall ensure that a driver's total compensation is not less 5
than the standard set forth in (a)(i), (ii), or (iii) of this 6
subsection (4).7
(i) For all dispatched trips originating in cities with a 8
population of more than 600,000, on a per trip basis the greater of:9
(A) $0.59 per passenger platform minute for all passenger 10
platform time for that trip, and $1.38 per passenger platform mile 11
for all passenger platform miles driven on that trip; or12
(B) A minimum of $5.17 per dispatched trip.13
(ii) For all other dispatched trips, the greater of:14
(A) $0.34 per passenger platform minute and $1.17 per passenger 15
platform mile; or16
(B) A minimum of $3.00 per dispatched trip.17
(iii) For all trips originating elsewhere and terminating in 18
cities with a population of more than 600,000:19
(A) For all passenger platform time spent within the city on that 20
trip and for all passenger platform miles driven in the city on that 21
trip the compensation standard under (a)(i) of this subsection 22
applies.23
(B) For all passenger platform time spent outside the city on 24
that trip and for all passenger platform miles driven outside the 25
city on that trip the compensation standard under (a)(ii) of this 26
subsection applies.27
(b) Beginning September 30, 2022, and on each following September 28
30th, the department shall calculate adjusted per mile and per minute 29
amounts and per trip minimums by increasing the current year's per 30
mile and per minute amounts and per trip minimums by the rate of 31
increase of the state minimum wage, calculated to the nearest cent. 32
The adjusted amount calculated under this section takes effect on the 33
following January 1st.34
(c) For shared rides, the per trip minimums in (a)(i) and (ii) of 35
this subsection shall apply only to the entirety of the shared ride, 36
and not on the basis of the individual passenger's trip within the 37
shared ride.38
(5)(a) For the purposes of this section, a dispatched trip 39
includes:40
p. 22 HB 1764
(i) A dispatched trip in which the driver transports the 1
passenger to the passenger drop-off location;2
(ii) A dispatched trip canceled after two minutes by a passenger 3
or the transportation network company unless cancellation is due to 4
driver conduct, or no cancellation fee is charged to the passenger;5
(iii) A dispatched trip that is canceled by the driver for good 6
cause consistent with company policy; and7
(iv) A dispatched trip where the passenger does not appear at the 8
passenger pick-up location within five minutes.9
(b) A transportation network company may exclude time and miles 10
if doing so is reasonably necessary to remedy or prevent fraudulent 11
use of the transportation network company's online-enabled 12
application or platform.13
(6)(a) A transportation network company shall remit to drivers 14
all tips. Tips paid to a driver are in addition to, and may not count 15
towards, the driver's minimum compensation under this section.16
(b) Amounts charged to a passenger and remitted to the driver for 17
tolls, fees, or surcharges incurred by a driver during a trip must 18
not be included in calculating compensation for purposes of 19
subsection (4) of this section.20
(c)(i) Beginning January 1, 2023, except as required by law, a 21
transportation network company may only deduct compensation when the 22
driver expressly authorizes the deduction in writing and does so in 23
advance for a lawful purpose. Any authorization by a driver must be 24
voluntary and knowing.25
(ii) Nothing in this section shall prohibit a transportation 26
network company from deducting compensation as required by state or 27
federal law or as directed by a court order.28
(iii) Neither the transportation network company nor any person 29
acting in the interest of the transportation network company may 30
derive any financial profit or benefit from any of the deductions 31
under this section. For the purposes of this section:32
(A) Reasonable interest charged by the transportation network 33
company or any person acting in the interest of a transportation 34
network company, for a loan or credit extended to the driver, is not 35
considered to be of financial benefit to the transportation network 36
company or person acting in the interest of a transportation network 37
company; and38
p. 23 HB 1764
(B) A deduction will be considered for financial profit or 1
benefit only if it results in a gain over and above the fair market 2
value of the goods or services for which the deduction was made.3
(7)(a) Beginning January 1, 2023, a transportation network 4
company shall provide each driver with a written notice of rights 5
established by this section in a form and manner sufficient to inform 6
drivers of their rights under this section. The notice of rights 7
shall provide information on:8
(i) The right to the applicable per minute rate and per mile rate 9
or per trip rate guaranteed by this section;10
(ii) The right to be protected from retaliation for exercising in 11
good faith the rights protected by this section; and12
(iii) The right to seek legal action or file a complaint with the 13
department for violation of the requirements of this section, 14
including a transportation network company's failure to pay the 15
minimum per minute rate or per mile rate or per trip rate, or a 16
transportation network company's retaliation against a driver or 17
other person for engaging in an activity protected by this section.18
(b) A transportation network company shall provide the notice of 19
rights required by this section in an electronic format that is 20
readily accessible to the driver. The notice of rights shall be made 21
available to the driver via smartphone application or online web 22
portal, in English and the five most common foreign languages spoken 23
in this state.24
(8) Beginning December 31, 2022, within 24 hours of completion of 25
each dispatched trip, a transportation network company must transmit 26
an electronic receipt to the driver that contains the following 27
information for each unique trip, or portion of a unique trip, 28
covered by this section:29
(a) The total amount of passenger platform time;30
(b) The total mileage driven during passenger platform time;31
(c) Rate or rates of pay, including but not limited to the rate 32
per minute, rate per mile, percentage of passenger fare, and any 33
applicable price multiplier or variable pricing policy in effect for 34
the trip;35
(d) Tip compensation;36
(e) Gross payment;37
(f) Net payment after deductions, fees, tolls, surcharges, lease 38
fees, or other charges; and39
p. 24 HB 1764
(g) Itemized deductions or fees, including any toll, surcharge, 1
commission, lease fees, and other charges.2
(9) Beginning January 1, 2023, a transportation network company 3
shall make driver per trip receipts available in a downloadable 4
format, such as a comma-separated values file or PDF file, via 5
smartphone application or online web portal for a period of two years 6
from the date the transportation network company provided the receipt 7
to the driver.8
(10) Beginning January 1, 2023, on a weekly basis, the 9
transportation network company shall provide written notice to the 10
driver that contains the following information for trips, or a 11
portion of a trip, that is covered by this section and which occurred 12
in the prior week:13
(a) The driver's total passenger platform time;14
(b) Total mileage driven by the driver during passenger platform 15
time;16
(c) The driver's total tip compensation;17
(d) The driver's gross payment, itemized by: (i) Rate per minute; 18
(ii) rate per mile; and (iii) any other method used to calculate pay 19
including, but not limited to, base pay, percentage of passenger 20
fare, or any applicable price multiplier or variable pricing policy 21
in effect for the trip;22
(e) The driver's net payment after deductions, fees, tolls, 23
surcharges, lease fees, or other charges; and24
(f) Itemized deductions or fees, including all tolls, surcharges, 25
commissions, lease fees, and other charges, from the driver's 26
payment.27
(11) Beginning January 1, 2023, within 24 hours of a trip's 28
completion, a transportation network company must transmit an 29
electronic receipt to the passenger, for on trip time, on behalf of 30
the driver that lists:31
(a) The date and time of the trip;32
(b) The passenger pick-up and passenger drop-off locations for 33
the trip. In describing the passenger pick-up location and passenger 34
drop-off location, the transportation network company shall describe 35
the location by indicating the specific block (e.g. "the 300 block of 36
Pine Street") in which the passenger pick-up and passenger drop-off 37
occurred. A transportation network company is authorized to indicate 38
the location with greater specificity, such as with a street address 39
or intersection, at its discretion;40
p. 25 HB 1764
(c) The total duration and distance of the trip;1
(d) The driver's first name;2
(e) The total fare paid, itemizing all charges and fees; and3
(f) The total passenger-paid tips.4
(12)(a) Beginning July 1, 2024, transportation network companies 5
shall collect and remit a $0.15 per trip fee to the driver resource 6
center fund, created in RCW 49.46.310, for the driver resource center 7
to support the driver community. The remittance under this subsection 8
is a pass-through of passenger fares and shall not be considered a 9
transportation network company's funding of the driver resource 10
center. Passenger fares paid include each individual trip portion on 11
shared trips. The remittances to the fund must be made on a quarterly 12
basis.13
(b) Beginning September 30, 2024, and on each following September 14
30th, the department shall calculate an adjusted per trip fee by 15
adjusting the current amount by the rate of inflation. The adjusted 16
amounts must be calculated to the nearest cent using the consumer 17
price index for urban wage earners and clerical workers, CPI-W, or a 18
successor index, for the 12 months prior to each September 1st as 19
calculated by the United States department of labor. Each adjusted 20
amount calculated under this subsection takes effect on the following 21
January 1st.22
(13) No later than one year after June 9, 2022, transportation 23
network companies shall provide an opportunity for drivers to make 24
voluntary per trip earnings deduction contributions to the driver 25
resource center, provided that 100 or more drivers working for 26
transportation network companies covered under this section have 27
authorized such a deduction to the driver resource center, and 28
subject to the following:29
(a) A driver must expressly authorize the deduction in writing. 30
Written authorization must include, at a minimum, sufficient 31
information to identify the driver and the driver's desired per trip 32
deduction amount. These deductions may reduce the driver's per trip 33
earnings below the minimums set forth in this section.34
(b) The transportation network company may require written 35
authorization to be submitted in electronic format from the driver 36
resource center.37
(c) The transportation network company shall make the first 38
deductions within 30 days of receiving a written authorization of the 39
driver, and shall remit deductions to the driver resource center each 40
p. 26 HB 1764
month, with remittance due not later than 28 days following the end 1
of the month. 2
(d) A driver's authorization remains in effect until the driver 3
resource center provides an express revocation to the transportation 4
network company.5
(e) A transportation network company shall rely on information 6
provided by the driver resource center regarding the authorization 7
and revocation of deductions.8
(f) Upon request by a transportation network company, the driver 9
resource center shall reimburse the transportation network company 10
for the costs associated with deduction and remittance. The 11
department shall adopt rules to calculate the reimbursable costs.12
(14) Each transportation network company shall submit to the 13
fund, with its remittance under subsection (12) of this section, a 14
report detailing the number of trips in the previous quarter and the 15
total amount of the surcharge charged to customers. The first payment 16
and accounting is due on the 30th day of the quarter following the 17
imposition of the surcharge. Failure to remit payments by the 18
deadlines is deemed a delinquency and the transportation network 19
company is subject to penalties and interest provided in RCW 20
49.46.330.21
(15)(a) The state expressly intends to displace competition with 22
regulation allowing a transportation network company, at its own 23
volition, to enter into an agreement with the driver resource center 24
regarding a driver account deactivation appeals process for eligible 25
account deactivations. It is the policy of the state to promote a 26
fair appeals process related to eligible account deactivations that 27
supports the rights of drivers and transportation network companies 28
and provides fair processes related to eligible account 29
deactivations. The state intends that any agreement under this 30
section is immune from all federal and state antitrust laws.31
(i) "Eligible account deactivation" means one or more of the 32
following actions with respect to an individual driver that is 33
implemented by a transportation network company:34
(A) Blocking or restricting access to the transportation network 35
company driver platform for three or more consecutive days; or36
(B) Changing a driver's account status from eligible to provide 37
transportation network company services to ineligible for three or 38
more consecutive days.39
p. 27 HB 1764
(ii) An eligible account deactivation does not include any change 1
in a driver's access or account status that is:2
(A) Related to an allegation of discrimination, harassment, 3
including sexual harassment or harassment due to someone's membership 4
in a protected class, or physical or sexual assault, or willful or 5
knowing commitment of fraud;6
(B) Related to an allegation that the driver was under the 7
influence of drugs or alcohol while a related active investigation 8
that takes no longer than 10 business days is under way; or9
(C) Any other categories the transportation network company and 10
the driver resource center may agree to as part of the agreement 11
under this subsection.12
(iii) A transportation network company shall enter into an 13
agreement with the driver resource center regarding the driver 14
account deactivation appeals process for eligible account 15
deactivations. Any agreement must be approved by the department. The 16
department may approve an agreement only if the agreement contains 17
the provisions in (a)(iv) of this subsection.18
(iv) The agreement must provide an appeals process for drivers 19
whose account has been subject to an eligible account deactivation. 20
The appeals process must include the following protections:21
(A) Opportunity for a driver representative to support a driver, 22
upon the driver's request, throughout the account deactivation 23
appeals process for eligible account deactivations;24
(B) Notification, as required by (d) of this subsection, to 25
drivers of their right to representation by the driver resource 26
center at the time of the eligible account deactivation;27
(C) Within 30 calendar days of a request, furnishing to the 28
driver resource center an explanation and information the 29
transportation network company may have relied upon in making the 30
deactivation decision, excluding confidential, proprietary, or 31
otherwise privileged communications, provided that personal 32
identifying information and confidential information is redacted to 33
address reasonable privacy and confidentiality concerns;34
(D) A good faith, informal resolution process that is committed 35
to efficient resolution of conflicts regarding eligible account 36
deactivations within 30 days of the transportation network company 37
being notified that the driver contests the explanation offered by 38
the company;39
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(E) A formal process that includes a just cause standard, with 1
deadlines for adjudication of an appeal of an eligible account 2
deactivation by a panel that includes a mutually agreed-upon neutral 3
third party with experience in dispute resolution. The panel has the 4
authority to make binding decisions within the confines of the law 5
and make-whole monetary awards, including back pay, based on an 6
agreed-upon formula for cases not resolved during the informal 7
process;8
(F) Agreement by the transportation network company to use the 9
process set forth in this subsection to resolve disputes over 10
eligible account deactivation appeals as an alternative to private 11
arbitration with regard to such a dispute, should the driver and 12
transportation network company so choose; and13
(G) Agreement by the transportation network company that, for 14
eligible account deactivations in which the driver or transportation 15
network company elect private arbitration in lieu of the formal 16
process outlined in (a)(iv)(E) of this subsection (15), the 17
transportation network company shall offer the driver the opportunity 18
to have the eligible deactivation adjudicated under the just cause 19
standard outlined in (a)(iv)(E) of this subsection.20
(b) A transportation network company that enters into an 21
agreement with the driver resource center shall reach agreement 22
through the following steps:23
(i)(A) For a transportation network company operating a digital 24
network in the state of Washington as of June 9, 2022, the driver 25
resource center and transportation network company must make good 26
faith efforts to reach an agreement within 120 days of an 27
organization being selected as the driver resource center under RCW 28
49.46.310.29
(B) For a transportation network company who begins operating a 30
digital network in the state of Washington after an organization has 31
been selected as the driver resource center under RCW 49.46.310, the 32
driver resource center and transportation network company must make 33
good faith efforts to reach an agreement within 120 days of the 34
transportation network company beginning operation of a digital 35
network in the state of Washington.36
(ii) If the driver resource center and transportation network 37
company cannot reach an agreement, then they are required to submit 38
issues of dispute before a jointly agreed-upon mediator.39
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(iii) After mediation lasting no more than two months has been 1
exhausted and no resolution has been reached, then the parties will 2
proceed to binding arbitration before a panel of arbitrators 3
consisting of one arbitrator selected by the driver resource center, 4
one arbitrator selected by the transportation network company, and a 5
third arbitrator selected by the other two. If the two selected 6
arbitrators cannot agree to the third arbitrator within 10 days, then 7
the third arbitrator shall be determined from a list of seven 8
arbitrators with experience in labor disputes or interest arbitration 9
designated by the American arbitration association. A coin toss shall 10
determine which side strikes the first name. Thereafter the other 11
side shall strike a name. The process will continue until only one 12
name remains, who shall be the third arbitrator. Alternatively, the 13
driver resource center and the transportation network company may 14
agree to a single arbitrator.15
(iv) The arbitrators must submit their decision, based on 16
majority rule, within 60 days of the panel or arbitrator being 17
chosen.18
(v) The decision of the majority of arbitrators is final and 19
binding and will then be submitted to the director of the department 20
for final approval.21
(c) In reviewing any agreement between a transportation network 22
company and the driver resource center, under (a) of this subsection, 23
the department shall review the agreement to ensure that its content 24
is consistent with this subsection and the public policy goals set 25
forth in this subsection. The department shall consider in its review 26
both qualitative and quantitative effects of the agreement and how 27
the agreement comports with the state policies set forth in this 28
section. In conducting a review, the record shall not be limited to 29
the submissions of the parties nor to the terms of the proposed 30
agreement and the department shall have the right to conduct public 31
hearings and request additional information from the parties, 32
provided that such information: (i) Is relevant for determining 33
whether the agreement complies with this subsection; and (ii) does 34
not contain either parties' confidential, proprietary, or privileged 35
information, or any individual's personal identifying information 36
from the parties. The department may approve or reject a proposed 37
agreement, and may require the parties to submit a revised proposal 38
on all or particular parts of the proposed agreement. If the 39
department rejects an agreement, it shall set forth its reasoning in 40
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writing and shall suggest ways the parties may remedy the failures. 1
Absent good cause, the department shall issue a written determination 2
regarding its approval or rejection within 60 days of submission of 3
the agreement. 4
(d)(i) For any account deactivation, the transportation network 5
company shall provide notification to the driver, at the time of 6
deactivation, that the driver may have the right to representation by 7
the driver resource center to appeal the account deactivation.8
(ii) A transportation network company must provide any driver 9
whose account is subject to an account deactivation between June 9, 10
2022, and the effective date of the agreement the contact information 11
of the driver resource center and notification that the driver may 12
have the right to appeal the account deactivation with representation 13
by the driver resource center.14
(16) The department may adopt rules to implement this section.))15
NEW SECTION. Sec. 11. A new section is added to chapter 49.46 16
RCW to read as follows: 17
(1) A driver is only covered by this section to the extent that 18
the driver provides network services within the state of Washington.19
(2)(a) A transportation network company is covered by this 20
section if it provides a driver platform within the state of 21
Washington. 22
(b) Separate entities that form an integrated enterprise are 23
considered a single transportation network company under this 24
section. Separate entities will be considered an integrated 25
enterprise and a single transportation network company where a 26
separate entity controls the operation of another entity. Factors to 27
consider include, but are not limited to: The degree of interrelation 28
between the operations of multiple entities; the degree to which the 29
entities share common management; the centralized control of labor 30
relations; the degree of common ownership or financial control over 31
the entities; and the use of a common brand, trade, business, or 32
operating name. 33
(3)(a) Beginning December 31, 2022, a transportation network 34
company shall ensure that a driver's total compensation is not less 35
than the standard set forth in this subsection (3)(a).36
(i) For all dispatched trips originating in cities with a 37
population of more than 600,000, on a per trip basis the greater of:38
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(A) $0.59 per passenger platform minute for all passenger 1
platform time for that trip, and $1.38 per passenger platform mile 2
for all passenger platform miles driven on that trip; or3
(B) A minimum of $5.17 per dispatched trip. 4
(ii) For all other dispatched trips, the greater of:5
(A) $0.34 per passenger platform minute and $1.17 per passenger 6
platform mile; or 7
(B) A minimum of $3.00 per dispatched trip. 8
(iii) For all trips originating elsewhere and terminating in 9
cities with a population of more than 600,000: 10
(A) For all passenger platform time spent within the city on that 11
trip and for all passenger platform miles driven in the city on that 12
trip the compensation standard under (a)(i) of this subsection 13
applies; 14
(B) For all passenger platform time spent outside the city on 15
that trip and for all passenger platform miles driven outside the 16
city on that trip the compensation standard under (a)(ii) of this 17
subsection applies. 18
(b) Beginning September 30, 2022, and on each following September 19
30th, the department shall calculate adjusted per mile and per minute 20
amounts and per trip minimums by increasing the current year's per 21
mile and per minute amounts and per trip minimums by the rate of 22
increase of the state minimum wage, calculated to the nearest cent. 23
The adjusted amount calculated under this section takes effect on the 24
following January 1st. 25
(c) For shared rides, the per trip minimums in (a)(i) and (ii) of 26
this subsection shall apply only to the entirety of the shared ride, 27
and not on the basis of the individual passenger's trip within the 28
shared ride. 29
(4)(a) For the purposes of this section, a dispatched trip 30
includes: 31
(i) A dispatched trip in which the driver transports the 32
passenger to the passenger drop-off location; 33
(ii) A dispatched trip canceled after two minutes by a passenger 34
or the transportation network company unless cancellation is due to 35
driver conduct, or no cancellation fee is charged to the passenger;36
(iii) A dispatched trip that is canceled by the driver for good 37
cause consistent with company policy; and 38
(iv) A dispatched trip where the passenger does not appear at the 39
passenger pick-up location within five minutes. 40
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(b) A transportation network company may exclude time and miles 1
if doing so is reasonably necessary to remedy or prevent fraudulent 2
use of the transportation network company's online-enabled 3
application or platform. 4
(5)(a) A transportation network company shall remit to drivers 5
all tips. Tips paid to a driver are in addition to, and may not count 6
towards, the driver's minimum compensation under this section.7
(b) Amounts charged to a passenger and remitted to the driver for 8
tolls, fees, or surcharges incurred by a driver during a trip must 9
not be included in calculating compensation for purposes of 10
subsection (3) of this section. 11
(c)(i) Beginning January 1, 2023, except as required by law, a 12
transportation network company may only deduct compensation when the 13
driver expressly authorizes the deduction in writing and does so in 14
advance for a lawful purpose. Any authorization by a driver must be 15
voluntary and knowing. 16
(ii) Nothing in this section shall prohibit a transportation 17
network company from deducting compensation as required by state or 18
federal law or as directed by a court order. 19
(iii) Neither the transportation network company nor any person 20
acting in the interest of the transportation network company may 21
derive any financial profit or benefit from any of the deductions 22
under this section. For the purposes of this section:23
(A) Reasonable interest charged by the transportation network 24
company or any person acting in the interest of a transportation 25
network company, for a loan or credit extended to the driver, is not 26
considered to be of financial benefit to the transportation network 27
company or person acting in the interest of a transportation network 28
company; and 29
(B) A deduction will be considered for financial profit or 30
benefit only if it results in a gain over and above the fair market 31
value of the goods or services for which the deduction was made.32
(6)(a) Beginning January 1, 2023, a transportation network 33
company shall provide each driver with a written notice of rights 34
established by this section in a form and manner sufficient to inform 35
drivers of their rights under this section. The notice of rights 36
shall provide information on: 37
(i) The right to the applicable per minute rate and per mile rate 38
or per trip rate guaranteed by this section; 39
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(ii) The right to be protected from retaliation for exercising in 1
good faith the rights protected by this section; and2
(iii) The right to seek legal action or file a complaint with the 3
department for violation of the requirements of this section, 4
including a transportation network company's failure to pay the 5
minimum per minute rate or per mile rate or per trip rate, or a 6
transportation network company's retaliation against a driver or 7
other person for engaging in an activity protected by this section.8
(b) A transportation network company shall provide the notice of 9
rights required by this section in an electronic format that is 10
readily accessible to the driver. The notice of rights shall be made 11
available to the driver via smartphone application or online web 12
portal, in English, and the five most common foreign languages spoken 13
in this state. 14
(7) Beginning December 31, 2022, within 24 hours of completion of 15
each dispatched trip, a transportation network company must transmit 16
an electronic receipt to the driver that contains the following 17
information for each unique trip, or portion of a unique trip, 18
covered by this section: 19
(a) The total amount of passenger platform time;20
(b) The total mileage driven during passenger platform time;21
(c) Rate or rates of pay including, but not limited to, the rate 22
per minute, rate per mile, percentage of passenger fare, and any 23
applicable price multiplier or variable pricing policy in effect for 24
the trip; 25
(d) Tip compensation; 26
(e) Gross payment; 27
(f) Net payment after deductions, fees, tolls, surcharges, lease 28
fees, or other charges; and 29
(g) Itemized deductions or fees, including any toll, surcharge, 30
commission, lease fees, and other charges. 31
(8) Beginning January 1, 2023, a transportation network company 32
shall make driver per trip receipts available in a downloadable 33
format, such as a comma-separated values file or PDF file, via 34
smartphone application or online web portal for a period of two years 35
from the date the transportation network company provided the receipt 36
to the driver. 37
(9) Beginning January 1, 2023, on a weekly basis, the 38
transportation network company shall provide written notice to the 39
driver that contains the following information for trips, or a 40
p. 34 HB 1764
portion of a trip, that is covered by this section and which occurred 1
in the prior week: 2
(a) The driver's total passenger platform time;3
(b) Total mileage driven by the driver during passenger platform 4
time; 5
(c) The driver's total tip compensation; 6
(d) The driver's gross payment, itemized by: (i) Rate per minute; 7
(ii) rate per mile; and (iii) any other method used to calculate pay 8
including, but not limited to, base pay, percentage of passenger 9
fare, or any applicable price multiplier or variable pricing policy 10
in effect for the trip; 11
(e) The driver's net payment after deductions, fees, tolls, 12
surcharges, lease fees, or other charges; and 13
(f) Itemized deductions or fees, including all tolls, surcharges, 14
commissions, lease fees, and other charges, from the driver's 15
payment. 16
(10) Beginning January 1, 2023, within 24 hours of a trip's 17
completion, a transportation network company must transmit an 18
electronic receipt to the passenger, for on trip time, on behalf of 19
the driver that lists: 20
(a) The date and time of the trip; 21
(b) The passenger pick-up and passenger drop-off locations for 22
the trip. In describing the passenger pick-up location and passenger 23
drop-off location, the transportation network company shall describe 24
the location by indicating the specific block (e.g. "the 300 block of 25
Pine Street") in which the passenger pick-up and passenger drop-off 26
occurred. A transportation network company is authorized to indicate 27
the location with greater specificity, such as with a street address 28
or intersection, at its discretion; 29
(c) The total duration and distance of the trip;30
(d) The driver's first name; 31
(e) The total fare paid, itemizing all charges and fees; and32
(f) The total passenger-paid tips. 33
NEW SECTION. Sec. 12. A new section is added to chapter 49.46 34
RCW to read as follows: 35
(1)(a) Transportation network companies shall collect and remit a 36
$0.15 per trip fee to the driver resource center fund, created in RCW 37
49.46.310, for the driver resource center to support the driver 38
community. The remittance under this subsection is a pass-through of 39
p. 35 HB 1764
passenger fares and shall not be considered a transportation network 1
company's funding of the driver resource center. Passenger fares paid 2
include each individual trip portion on shared trips. The remittances 3
to the fund must be made on a quarterly basis. 4
(b) Beginning September 30, 2024, and on each following September 5
30th, the department shall calculate an adjusted per trip fee by 6
adjusting the current amount by the rate of inflation. The adjusted 7
amounts must be calculated to the nearest cent using the consumer 8
price index for urban wage earners and clerical workers, CPI-W, or a 9
successor index, for the 12 months prior to each September 1st as 10
calculated by the United States department of labor. Each adjusted 11
amount calculated under this subsection takes effect on the following 12
January 1st. 13
(2) Transportation network companies shall provide an opportunity 14
for drivers to make voluntary per trip earnings deduction 15
contributions to the driver resource center, provided that 100 or 16
more drivers working for transportation network companies covered 17
under this section have authorized such a deduction to the driver 18
resource center, and subject to the following: 19
(a) A driver must expressly authorize the deduction in writing. 20
Written authorization must include, at a minimum, sufficient 21
information to identify the driver and the driver's desired per trip 22
deduction amount. These deductions may reduce the driver's per trip 23
earnings below the minimums set forth in this section.24
(b) The transportation network company may require written 25
authorization to be submitted in electronic format from the driver 26
resource center. 27
(c) The transportation network company shall make the first 28
deductions within 30 days of receiving a written authorization of the 29
driver and shall remit deductions to the driver resource center each 30
month, with remittance due not later than 28 days following the end 31
of the month. 32
(d) A driver's authorization remains in effect until the driver 33
resource center provides an express revocation to the transportation 34
network company. 35
(e) A transportation network company shall rely on information 36
provided by the driver resource center regarding the authorization 37
and revocation of deductions. 38
(f) Upon request by a transportation network company, the driver 39
resource center shall reimburse the transportation network company 40
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for the costs associated with deduction and remittance. The 1
department shall adopt rules to calculate the reimbursable costs.2
(3) Each transportation network company shall submit to the fund, 3
with its remittance under subsection (1) of this section, a report 4
detailing the number of trips in the previous quarter and the total 5
amount of the surcharge charged to customers. The first payment and 6
accounting is due on the 30th day of the quarter following the 7
imposition of the surcharge. Failure to remit payments by the 8
deadlines is deemed a delinquency and the transportation network 9
company is subject to penalties and interest provided in RCW 10
49.46.330. 11
(4)(a) The state expressly intends to displace competition with 12
regulation allowing a transportation network company, at its own 13
volition, to enter into an agreement with the driver resource center 14
regarding a driver account deactivation appeals process for eligible 15
account deactivations. It is the policy of the state to promote a 16
fair appeals process related to eligible account deactivations that 17
supports the rights of drivers and transportation network companies 18
and provides fair processes related to eligible account 19
deactivations. The state intends that any agreement under this 20
section is immune from all federal and state antitrust laws.21
(i) "Eligible account deactivation" means one or more of the 22
following actions with respect to an individual driver that is 23
implemented by a transportation network company: 24
(A) Blocking or restricting access to the transportation network 25
company driver platform for three or more consecutive days; or26
(B) Changing a driver's account status from eligible to provide 27
transportation network company services to ineligible for three or 28
more consecutive days. 29
(ii) An eligible account deactivation does not include any change 30
in a driver's access or account status that is: 31
(A) Related to an allegation of discrimination, harassment, 32
including sexual harassment or harassment due to someone's membership 33
in a protected class, or physical or sexual assault, or willful or 34
knowing commitment of fraud; 35
(B) Related to an allegation that the driver was under the 36
influence of drugs or alcohol while a related active investigation 37
that takes no longer than 10 business days is underway; or38
p. 37 HB 1764
(C) Any other categories the transportation network company and 1
the driver resource center may agree to as part of the agreement 2
under this subsection. 3
(iii) A transportation network company shall enter into an 4
agreement with the driver resource center regarding the driver 5
account deactivation appeals process for eligible account 6
deactivations. Any agreement must be approved by the department. The 7
department may approve an agreement only if the agreement contains 8
the provisions in (a)(iv) of this subsection. 9
(iv) The agreement must provide an appeals process for drivers 10
whose account has been subject to an eligible account deactivation. 11
The appeals process must include the following protections:12
(A) Opportunity for a driver representative to support a driver, 13
upon the driver's request, throughout the account deactivation 14
appeals process for eligible account deactivations;15
(B) Notification, as required by (d) of this subsection, to 16
drivers of their right to representation by the driver resource 17
center at the time of the eligible account deactivation;18
(C) Within 30 calendar days of a request, furnishing to the 19
driver resource center an explanation and information the 20
transportation network company may have relied upon in making the 21
deactivation decision, excluding confidential, proprietary, or 22
otherwise privileged communications, provided that personal 23
identifying information and confidential information is redacted to 24
address reasonable privacy and confidentiality concerns;25
(D) A good faith, informal resolution process that is committed 26
to efficient resolution of conflicts regarding eligible account 27
deactivations within 30 days of the transportation network company 28
being notified that the driver contests the explanation offered by 29
the company; 30
(E) A formal process that includes a just cause standard, with 31
deadlines for adjudication of an appeal of an eligible account 32
deactivation by a panel that includes a mutually agreed-upon neutral 33
third party with experience in dispute resolution. The panel has the 34
authority to make binding decisions within the confines of the law 35
and make whole monetary awards, including back pay, based on an 36
agreed-upon formula for cases not resolved during the informal 37
process; 38
(F) Agreement by the transportation network company to use the 39
process set forth in this subsection to resolve disputes over 40
p. 38 HB 1764
eligible account deactivation appeals as an alternative to private 1
arbitration with regard to such a dispute, should the driver and 2
transportation network company so choose; and 3
(G) Agreement by the transportation network company that, for 4
eligible account deactivations in which the driver or transportation 5
network company elect private arbitration in lieu of the formal 6
process outlined in (a)(iv)(E) of this subsection (4), the 7
transportation network company shall offer the driver the opportunity 8
to have the eligible deactivation adjudicated under the just cause 9
standard outlined in (a)(iv)(E) of this subsection.10
(b) A transportation network company that enters into an 11
agreement with the driver resource center shall reach agreement 12
through the following steps: 13
(i)(A) For a transportation network company operating a digital 14
network in the state of Washington as of June 9, 2022, the driver 15
resource center and transportation network company must make good 16
faith efforts to reach an agreement within 120 days of an 17
organization being selected as the driver resource center under RCW 18
49.46.310. 19
(B) For a transportation network company who begins operating a 20
digital network in the state of Washington after an organization has 21
been selected as the driver resource center under RCW 49.46.310, the 22
driver resource center and transportation network company must make 23
good faith efforts to reach an agreement within 120 days of the 24
transportation network company beginning operation of a digital 25
network in the state of Washington. 26
(ii) If the driver resource center and transportation network 27
company cannot reach an agreement, then they are required to submit 28
issues of dispute before a jointly agreed-upon mediator.29
(iii) After mediation lasting no more than two months has been 30
exhausted and no resolution has been reached, then the parties will 31
proceed to binding arbitration before a panel of arbitrators 32
consisting of one arbitrator selected by the driver resource center, 33
one arbitrator selected by the transportation network company, and a 34
third arbitrator selected by the other two. If the two selected 35
arbitrators cannot agree to the third arbitrator within 10 days, then 36
the third arbitrator shall be determined from a list of seven 37
arbitrators with experience in labor disputes or interest arbitration 38
designated by the American arbitration association. A coin toss shall 39
determine which side strikes the first name. Thereafter the other 40
p. 39 HB 1764
side shall strike a name. The process will continue until only one 1
name remains, who shall be the third arbitrator. Alternatively, the 2
driver resource center and the transportation network company may 3
agree to a single arbitrator. 4
(iv) The arbitrators must submit their decision, based on 5
majority rule, within 60 days of the panel or arbitrator being 6
chosen. 7
(v) The decision of the majority of arbitrators is final and 8
binding and will then be submitted to the director of the department 9
for final approval. 10
(c) In reviewing any agreement between a transportation network 11
company and the driver resource center, under (a) of this subsection, 12
the department shall review the agreement to ensure that its content 13
is consistent with this subsection and the public policy goals set 14
forth in this subsection. The department shall consider in its review 15
both qualitative and quantitative effects of the agreement and how 16
the agreement comports with the state policies set forth in this 17
section. In conducting a review, the record shall not be limited to 18
the submissions of the parties nor to the terms of the proposed 19
agreement and the department shall have the right to conduct public 20
hearings and request additional information from the parties, 21
provided that such information: (i) Is relevant for determining 22
whether the agreement complies with this subsection; and (ii) does 23
not contain either parties' confidential, proprietary, or privileged 24
information, or any individual's personal identifying information 25
from the parties. The department may approve or reject a proposed 26
agreement, and may require the parties to submit a revised proposal 27
on all or particular parts of the proposed agreement. If the 28
department rejects an agreement, it shall set forth its reasoning in 29
writing and shall suggest ways the parties may remedy the failures. 30
Absent good cause, the department shall issue a written determination 31
regarding its approval or rejection within 60 days of submission of 32
the agreement. 33
(d)(i) For any account deactivation, the transportation network 34
company shall provide notification to the driver, at the time of 35
deactivation, that the driver may have the right to representation by 36
the driver resource center to appeal the account deactivation.37
(ii) A transportation network company must provide any driver 38
whose account is subject to an account deactivation between June 9, 39
2022, and the effective date of the agreement the contact information 40
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of the driver resource center and notification that the driver may 1
have the right to appeal the account deactivation with representation 2
by the driver resource center. 3
NEW SECTION. Sec. 13. A new section is added to chapter 49.46 4
RCW to read as follows: 5
(1) Beginning January 1, 2023, a transportation network company 6
must provide to each driver operating on its driver platform 7
compensation for earned paid sick time as required by this section 8
and subject to the provisions of this section. A driver shall accrue 9
one hour of earned paid sick time for every 40 hours of passenger 10
platform time worked. 11
(2) A driver is entitled to use accrued earned paid sick time 12
upon recording 90 hours of passenger platform time on the 13
transportation network company's driver platform. 14
(3) For each hour of earned paid sick time used, a driver shall 15
be paid the driver's average hourly compensation. 16
(4) A transportation network company shall establish an 17
accessible system for drivers to request and use earned paid sick 18
time. The system must be available to drivers via smartphone 19
application and online web portal. 20
(5) A driver may carry over up to 40 hours of unused earned paid 21
sick time to the next calendar year. If a driver carries over unused 22
earned paid sick time to the following year, accrual of earned paid 23
sick time in the subsequent year must be in addition to the hours 24
accrued in the previous year and carried over. 25
(6) A driver is entitled to use accrued earned paid sick time if 26
the driver has used the transportation network company's platform as 27
a driver within 90 calendar days preceding the driver's request to 28
use earned paid sick time. 29
(7) A driver is entitled to use earned paid sick time for the 30
following reasons: 31
(a) An absence resulting from the driver's mental or physical 32
illness, injury, or health condition; to accommodate the driver's 33
need for medical diagnosis, care, or treatment of a mental or 34
physical illness, injury, or health condition; or an employee's need 35
for preventive medical care; 36
(b) To allow the driver to provide care for a family member with 37
a mental or physical illness, injury, or health condition; care of a 38
family member who needs medical diagnosis, care, or treatment of a 39
p. 41 HB 1764
mental or physical illness, injury, or health condition; or care for 1
a family member who needs preventive medical care; 2
(c) When the driver's child's school or place of care has been 3
closed by order of a public official for any health-related reason or 4
has been closed after the declaration of an emergency by a local or 5
state government or agency, or by the federal government;6
(d) For absences for which an employee would be entitled for 7
leave under RCW 49.76.030; and 8
(e) During a deactivation or other status that prevents the 9
driver from performing network services on the transportation network 10
company's platform, unless the deactivation or status is due to a 11
verified allegation of sexual assault or physical assault perpetrated 12
by the driver. 13
(8) If a driver does not record any passenger platform time in a 14
transportation network company's driver platform for 365 or more 15
consecutive days, any unused earned paid sick time accrued up to that 16
point with that transportation network company is no longer valid or 17
recognized. 18
(9) Drivers may use accrued days of earned paid sick time in 19
increments of a minimum of one or more hours. Drivers are entitled to 20
request one or more hours of earned paid sick time for immediate use, 21
including consecutive days of use. Drivers are not entitled to use 22
more than eight hours of earned paid sick time within a single 23
calendar day. 24
(10) A transportation network company shall compensate a driver 25
for requested hours or days of earned paid sick time no later than 14 26
calendar days or the next regularly scheduled date of compensation 27
following the requested hours or days of earned paid sick time.28
(11) A transportation network company shall not request or 29
require reasonable verification of a driver's qualifying illness 30
except as would be permitted to be requested of an employee under RCW 31
49.46.210(7). If a transportation network company requires 32
verification pursuant to this subsection, the transportation network 33
company must compensate the driver for the requested hours or days of 34
earned paid sick time no later than the driver's next regularly 35
scheduled date of compensation after satisfactory verification is 36
provided. 37
(12) If a driver accepts an offer of prearranged services for 38
compensation from a transportation network company during the one-39
hour period or periods for which the driver requested earned paid 40
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sick time, a transportation network company may determine that the 1
driver did not use earned paid sick time for an authorized purpose.2
(13) A transportation network company shall provide each driver 3
with: 4
(a) Written notification of the current rate of average hourly 5
compensation while a passenger is in the vehicle during the most 6
recent calendar month for use of earned paid sick time;7
(b) An updated amount of accrued earned paid sick time since the 8
last notification; 9
(c) Reduced earned paid sick time since the last notification;10
(d) Any unused earned paid sick time available for use; and11
(e) Any amount that the transportation network company may 12
subtract from the driver's compensation for earned paid sick time. 13
The transportation network company shall provide this information to 14
the driver no less than monthly. The transportation network company 15
may choose a reasonable system for providing this notification 16
including, but not limited to: A pay stub; a weekly summary of 17
compensation information; or an online system where drivers can 18
access their own earned paid sick time information. A transportation 19
network company is not required to provide this information to a 20
driver if the driver has not worked any days since the last 21
notification. 22
(14) The definitions in this subsection apply throughout this 23
section: 24
(a) "Average hourly compensation" means a driver's compensation 25
during passenger platform time from, or facilitated by, the 26
transportation network company, during the 365 days immediately prior 27
to the day that paid sick time is used, divided by the total hours of 28
passenger platform time worked by the driver on that transportation 29
network company's driver platform during that period. "Average hourly 30
compensation" does not include tips. 31
(b) "Earned paid sick time" is the time provided by a 32
transportation network company to a driver as calculated under this 33
subsection. For each hour of earned paid sick time used by a driver, 34
the transportation network company shall compensate the driver at a 35
rate equal to the driver's average hourly compensation.36
NEW SECTION. Sec. 14. A new section is added to chapter 49.46 37
RCW to read as follows: 38
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(1) A transportation network company must provide to each driver 1
operating on its driver platform compensation for earned vacation 2
time as required by this section and subject to the provisions of 3
this section. A driver shall accrue 2.3 hours of earned paid vacation 4
time for every 40 hours of passenger platform time worked.5
(2) A driver is entitled to use accrued earned paid vacation time 6
upon recording 90 hours of passenger platform time on the 7
transportation network company's driver platform. 8
(3) For each hour of earned paid vacation time used, a driver 9
shall be paid the driver's average hourly compensation.10
(4) A transportation network company shall establish an 11
accessible system for drivers to request and use earned paid vacation 12
time. The system must be available to drivers via smartphone 13
application and online web portal. 14
(5) A driver may carry over up to 40 hours of unused earned paid 15
vacation time to the next calendar year. If a driver carries over 16
unused earned paid vacation time to the following year, accrual of 17
earned paid vacation time in the subsequent year must be in addition 18
to the hours accrued in the previous year and carried over.19
(6) A driver is entitled to use accrued earned paid vacation time 20
if the driver has used the transportation network company's platform 21
as a driver within 90 calendar days preceding the driver's request to 22
use earned paid vacation time. 23
(7) A driver is entitled to use earned paid vacation time during 24
a deactivation or other status that prevents the driver from 25
performing network services on the transportation network company's 26
platform, unless the deactivation or status is due to a verified 27
allegation of sexual assault or physical assault perpetrated by the 28
driver. 29
(8) If a driver does not record any passenger platform time in a 30
transportation network company's driver platform for 365 or more 31
consecutive days, any unused earned paid vacation time accrued up to 32
that point with that transportation network company is no longer 33
valid or recognized. 34
(9) Drivers may use accrued days of earned paid vacation time in 35
increments of a minimum of one or more hours. Drivers are entitled to 36
request one or more hours of earned paid vacation time for immediate 37
use, including consecutive days of use. Drivers are not entitled to 38
use more than eight hours of earned paid vacation time within a 39
single calendar day. 40
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(10) A transportation network company shall compensate a driver 1
for requested hours or days of earned paid vacation time no later 2
than 14 calendar days or the next regularly scheduled date of 3
compensation following the requested hours or days of earned paid 4
vacation time. 5
(11) A transportation network company shall provide each driver 6
with: 7
(a) Written notification of the current rate of average hourly 8
compensation while a passenger is in the vehicle during the most 9
recent calendar month for use of earned paid vacation time;10
(b) An updated amount of accrued earned paid vacation time since 11
the last notification; 12
(c) Reduced earned paid vacation time since the last 13
notification; 14
(d) Any unused earned paid vacation time available for use; and15
(e) Any amount that the transportation network company may 16
subtract from the driver's compensation for earned paid vacation 17
time. The transportation network company shall provide this 18
information to the driver no less than monthly. The transportation 19
network company may choose a reasonable system for providing this 20
notification including, but not limited to: A pay stub; a weekly 21
summary of compensation information; or an online system where 22
drivers can access their own earned paid vacation time information. A 23
transportation network company is not required to provide this 24
information to a driver if the driver has not worked any days since 25
the last notification. 26
(12) The definitions in this subsection apply throughout this 27
section: 28
(a) "Average hourly compensation" means a driver's compensation 29
during passenger platform time from, or facilitated by, the 30
transportation network company, during the 365 days immediately prior 31
to the day that paid vacation time is used, divided by the total 32
hours of passenger platform time worked by the driver on that 33
transportation network company's driver platform during that period. 34
"Average hourly compensation" does not include tips.35
(b) "Earned paid vacation time" is the time provided by a 36
transportation network company to a driver as calculated under this 37
subsection. For each hour of earned paid vacation time used by a 38
driver, the transportation network company shall compensate the 39
driver at a rate equal to the driver's average hourly compensation.40
p. 45 HB 1764
NEW SECTION. Sec. 15. A new section is added to chapter 49.46 1
RCW to read as follows: 2
(1) A transportation network company may not adopt or enforce any 3
policy that counts the use of earned paid sick time required under 4
section 13 of this act or earned vacation leave under section 14 of 5
this act as an absence that may lead to or result in any action that 6
adversely affects the driver's use of the transportation network.7
(2) A transportation network company may not take any action 8
against a driver that adversely affects the driver's use of the 9
transportation network due to the driver's exercise of any rights 10
under this chapter including the use of earned paid sick time under 11
section 13 of this act or earned vacation leave under section 14 of 12
this act. 13
NEW SECTION. Sec. 16. A new section is added to chapter 49.46 14
RCW to read as follows: 15
(1) If the director determines that a transportation network 16
company has violated this act, the department may issue a stop work 17
order to cease all business operations at every site where the 18
violation has occurred. 19
(2) Transportation network companies must pay drivers normal 20
hourly compensation for all hours they would have been regularly 21
scheduled to work during the stop work period. This requirement is a 22
wage payment requirement under RCW 49.48.082. 23
(3) A stop work order issued under this section remains in effect 24
until the director issues an order releasing the stop work order upon 25
finding that the transportation network company has paid any amounts 26
owed to the drivers, including interest, and any penalties due.27
(4) As a condition for release from a stop work order, the 28
director may require the transportation network company to file with 29
the department periodic reports for a probationary period that 30
demonstrate the transportation network company's continued compliance 31
with the provisions of this act. Any probationary period may not 32
exceed two years. 33
(5)(a) The director may assess a civil penalty of not more than 34
$5,000 per day against a transportation network company for each day 35
that the transportation network company conducts business operations 36
that violate the stop work order. 37
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(b) The department may adopt by rule penalty amounts under this 1
subsection that vary by the size of the transportation network 2
company. 3
(c) On September 30, 2028, and on each following September 30th, 4
the department shall calculate adjusted penalties payable pursuant to 5
this section by increasing the current year's penalties by the rate 6
of inflation. The penalties must be calculated to the nearest cent 7
using the consumer price index for urban wage earners and clerical 8
workers, CPI-W, or a successor index, for the 12 months prior to each 9
September 1st as calculated by the United States department of labor. 10
The adjusted penalties calculated under this subsection (5)(c) take 11
effect on the following January 1st. 12
(6) A transportation network company may contest a stop work 13
order within 72 hours of the issuance of the stop work order by 14
filing a petition for judicial review to superior court. Upon the 15
filing of any such petition, the superior courts of the state of 16
Washington have jurisdiction to issue a temporary stay of the stop 17
work order pending further agency action. The court may not grant a 18
temporary stay unless the transportation network company meets its 19
burden to show such a stay is appropriate under RCW 34.05.550.20
NEW SECTION. Sec. 17. A new section is added to chapter 49.46 21
RCW to read as follows: 22
The department may adopt rules to implement this chapter.23
NEW SECTION. Sec. 18. This act takes effect January 1, 2026.24
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