LNI communication methods

AN ACT Relating to modernizing methods of communications by the 1
department of labor and industries; amending RCW 18.27.010, 2
18.27.060, 18.27.230, 18.106.100, 18.106.180, 19.28.131, 19.28.271, 3
19.28.341, 19.28.490, 43.22.435, 43.22A.080, 43.22A.130, 49.12.145, 4
49.12.390, 49.17.040, 49.17.140, 49.17.160, 49.26.110, 49.40.060, 5
49.46.320, 49.46.330, 49.46.340, 49.46.370, 49.48.083, 49.60.515, 6
49.84.045, 51.04.082, 51.12.120, 51.14.060, 51.14.090, 51.24.060, 7
51.24.070, 51.24.080, 51.32.210, 51.48.180, 51.52.050, 70.79.320, 8
70.87.125, 70.87.185, and 70.87.205; and reenacting and amending RCW 9
49.48.060. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:11
Sec. 1. RCW 18.27.010 and 2023 c 213 s 1 are each amended to 12
read as follows: 13
The definitions in this section apply throughout this chapter 14
unless the context clearly requires otherwise. 15
(1)(a) "Contractor" includes any person, firm, corporation, or 16
other entity who or which, in the pursuit of an independent business 17
undertakes to, or offers to undertake, or submits a bid to, 18
construct, alter, repair, add to, subtract from, improve, develop, 19
move, wreck, or demolish any building, highway, road, railroad, 20
excavation or other structure, project, development, or improvement 21
Z-0433.5
HOUSE BILL 2406
State of Washington 69th Legislature 2026 Regular Session
By Representatives Schmidt and Bronoske; by request of Department of
Labor & Industries
Read first time 01/13/26. Referred to Committee on Labor & Workplace
Standards.
p. 1 HB 2406
attached to real estate or to do any part thereof including the 1
installation of carpeting or other floor covering, the erection of 2
scaffolding or other structures or works in connection therewith, the 3
installation or repair of roofing or siding, performing tree removal 4
services, or cabinet or similar installation; or, who, to do similar 5
work upon his or her own property, employs members of more than one 6
trade upon a single job or project or under a single building permit 7
except as otherwise provided in this chapter. 8
(b) "Contractor" also includes a consultant acting as a general 9
contractor. 10
(c) "Contractor" also includes any person, firm, corporation, or 11
other entity covered by this subsection (1), whether or not 12
registered as required under this chapter or who are otherwise 13
required to be registered or licensed by law, who offer to sell their 14
property without occupying or using the structures, projects, 15
developments, or improvements for more than one year from the date 16
the structure, project, development, or improvement was substantially 17
completed or abandoned. A person, firm, corporation, or other entity 18
is not a contractor under this subsection (1)(c) if the person, firm, 19
corporation, or other entity contracts with a registered general 20
contractor and does not superintend the work. 21
(2) "Department" means the department of labor and industries.22
(3) "Director" means the director of the department of labor and 23
industries or designated representative employed by the department.24
(4) "Filing" means delivery of a document that is required to be 25
filed with an agency to a place designated by the agency.26
(5) "General contractor" means a contractor whose business 27
operations require the use of more than one building trade or craft 28
upon a single job or project or under a single building permit. A 29
general contractor also includes one who superintends, or consults 30
on, in whole or in part, work falling within the definition of a 31
contractor. 32
(6) "Notice of infraction" means a form used by the department to 33
notify contractors that an infraction under this chapter has been 34
filed against them. 35
(7) "Partnership" means a business formed under Title 25 RCW.36
(8) "Registration cancellation" means a written notice from the 37
department that a contractor's action is in violation of this chapter 38
and that the contractor's registration has been revoked.39
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(9) "Registration suspension" means either an automatic 1
suspension as provided in this chapter, or a written notice from the 2
department that a contractor's action is a violation of this chapter 3
and that the contractor's registration has been suspended for a 4
specified time, or until the contractor shows evidence of compliance 5
with this chapter. 6
(10) "Residential homeowner" means an individual person or 7
persons owning or leasing real property: 8
(a) Upon which one single-family residence is to be built and in 9
which the owner or lessee intends to reside upon completion of any 10
construction; or 11
(b) Upon which there is a single-family residence to which 12
improvements are to be made and in which the owner or lessee intends 13
to reside upon completion of any construction. 14
(11) "Service," except as otherwise provided in RCW 18.27.225, 15
18.27.230, and 18.27.370, means posting in the United States mail, 16
properly addressed, postage prepaid, return receipt requested, or 17
personal service. Service by mail is complete upon deposit in the 18
United States mail to the last known address provided to the 19
department. 20
(12) "Specialty contractor" means a contractor whose operations 21
do not fall within the definition of "general contractor". A 22
specialty contractor may only subcontract work that is incidental to 23
the specialty contractor's work. 24
(13) "Substantial completion" means the same as "substantial 25
completion of construction" in RCW 4.16.310. 26
(14) "Successor" means an applicant operating with all or part of 27
the assets of another entity previously registered under this 28
chapter, where the applicant is under substantially common ownership, 29
management, or control of the other entity. 30
(15) "Unregistered contractor" means a person, firm, corporation, 31
or other entity doing work as a contractor without being registered 32
in compliance with this chapter. "Unregistered contractor" includes 33
contractors whose registration is expired, revoked, or suspended. 34
"Unregistered contractor" does not include a contractor who has 35
maintained a valid bond and the insurance or assigned account 36
required by RCW 18.27.050, and whose registration has lapsed for 30 37
or fewer days. 38
(16) "Unsatisfied final judgment" means a judgment or final tax 39
warrant that has not been satisfied either through payment, court 40
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approved settlement, discharge in bankruptcy, or assignment under RCW 1
19.72.070. 2
(17) "Verification" means the receipt and duplication by the 3
city, town, or county of a contractor registration card that is 4
current on its face, checking the department's contractor 5
registration database, or calling the department to confirm that the 6
contractor is registered. 7
Sec. 2. RCW 18.27.060 and 2020 c 153 s 21 are each amended to 8
read as follows: 9
(1) A certificate of registration shall be valid for two years 10
and shall be renewed on or before the expiration date. The department 11
shall issue to the applicant a certificate of registration upon 12
compliance with the registration requirements of this chapter.13
(2) If the department approves an application, it shall issue a 14
certificate of registration to the applicant. 15
(3) If a contractor's surety bond or other security has an 16
unsatisfied judgment against it or is canceled, or if the 17
contractor's insurance policy is canceled, the contractor's 18
registration shall be automatically suspended on the effective date 19
of the impairment or cancellation. The department shall ((mail notice 20
of the suspension to the contractor's address on the certificate of 21
registration within two days after suspension using a method by which 22
the mailing)) notify the contractor of the suspension within two days 23
after suspension using an electronic or nonelectronic method by which 24
the notice can be tracked or the delivery can be confirmed. Before 25
using an electronic method for the first time under this section, the 26
department must provide the contractor the option to receive 27
communication through a nonelectronic method.28
(4) Renewal of registration is valid on the date the department 29
receives the required fee and proof of bond and liability insurance, 30
if sent by certified mail or other means requiring proof of delivery. 31
The receipt or proof of delivery shall serve as the contractor's 32
proof of renewed registration until he or she receives verification 33
from the department. 34
(5) The department shall immediately suspend the certificate of 35
registration of a contractor who has been certified by the department 36
of social and health services as a person who is not in compliance 37
with a support order or a visitation order as provided in RCW 38
74.20A.320. The certificate of registration shall not be reissued or 39
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renewed unless the person provides to the department a release from 1
the department of social and health services stating that he or she 2
is in compliance with the order and the person has continued to meet 3
all other requirements for certification during the suspension.4
Sec. 3. RCW 18.27.230 and 2011 c 301 s 2 are each amended to 5
read as follows: 6
The department may issue a notice of infraction if the department 7
reasonably believes that the contractor has committed an infraction 8
under this chapter. A notice of infraction issued under this section 9
shall be personally served on the contractor named in the notice by 10
the department's compliance inspectors or service can be made using 11
((a)) an electronic or nonelectronic method by which the ((mailing)) 12
notice can be tracked or the delivery can be confirmed directed to 13
the contractor named in the notice of infraction at the contractor's 14
last known address of record. Before using an electronic method for 15
the first time under this section, the department must provide the 16
contractor the option to receive communication through a 17
nonelectronic method. If the contractor named in the notice of 18
infraction is a firm or corporation, the notice may be personally 19
served on any employee of the firm or corporation. If a notice of 20
infraction is personally served upon an employee of a firm or 21
corporation, the department shall send a copy of the notice using 22
((a)) an electronic or nonelectronic method by which the ((mailing)) 23
notice can be tracked or the delivery can be confirmed to the 24
contractor if the department is able to obtain the contractor's 25
address. 26
Sec. 4. RCW 18.106.100 and 2020 c 153 s 11 are each amended to 27
read as follows: 28
(1) The department may revoke or suspend a certificate of 29
competency, license, or endorsement for any of the following reasons:30
(a) The certificate, license, or endorsement was obtained through 31
error or fraud; 32
(b) The certificate, license, or endorsement holder is judged to 33
be incompetent to carry on the trade of plumbing as a journey level 34
plumber, specialty plumber, or residential service plumber;35
(c) The certificate, license, or endorsement holder has violated 36
any provision of this chapter or any rule adopted under this chapter.37
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(2) Before a certificate of competency, license, or endorsement 1
is revoked or suspended, the department shall send ((written)) notice 2
using ((a)) an electronic or nonelectronic method by which the 3
((mailing)) notice can be tracked or the delivery can be confirmed to 4
the certificate holder's last known address. Before using an 5
electronic method for the first time under this subsection, the 6
department must provide the certificate holder the option to receive 7
communication through a nonelectronic method. The notice must list 8
the allegations against the certificate holder and give him or her 9
the opportunity to request a hearing before the advisory board. At 10
the hearing, the department and the certificate holder have 11
opportunity to produce witnesses and give testimony. The hearing must 12
be conducted in accordance with chapter 34.05 RCW. The board shall 13
render its decision based upon the testimony and evidence presented 14
and shall notify the parties immediately upon reaching its decision. 15
A majority of the board is necessary to render a decision.16
(3) The department may deny renewal of a certificate of 17
competency, license, or endorsement issued under this chapter if the 18
applicant owes outstanding penalties for a final judgment under this 19
chapter. The department shall notify the applicant of the denial 20
using ((a)) an electronic or nonelectronic method by which the 21
((mailing)) notice can be tracked or the delivery can be confirmed to 22
the address on the application. Before using an electronic method for 23
the first time under this subsection, the department must provide the 24
applicant the option to receive communication through a nonelectronic 25
method. The applicant may appeal the denial within ((twenty)) 20 days 26
by filing a notice of appeal with the department accompanied by a 27
certified check for ((two hundred dollars )) $200 which shall be 28
returned to the applicant if the decision of the department is not 29
upheld by the hearings officer. The office of administrative hearings 30
shall conduct the hearing under chapter 34.05 RCW. If the hearings 31
officer sustains the decision of the department, the ((two hundred 32
dollars)) $200 must be applied to the cost of the hearing.33
Sec. 5. RCW 18.106.180 and 2020 c 153 s 15 are each amended to 34
read as follows: 35
(1) An authorized representative of the department may issue a 36
notice of infraction as specified in RCW 18.106.020 if:37
(a) A person who is doing plumbing work or who is offering to do 38
plumbing work fails to produce evidence of: 39
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(i) Having a certificate or permit issued by the department in 1
accordance with this chapter, or being supervised by a person who has 2
such a certificate or permit; and 3
(ii) Until January 1, 2021, being registered as a contractor as 4
required under chapter 18.27 RCW, or being employed by a person who 5
is registered as a contractor as required under chapter 18.27 RCW;6
(b) Until January 1, 2021, a person who employs anyone, or offers 7
or advertises to employ anyone, to do plumbing work fails to produce 8
evidence of being registered as a contractor as required under 9
chapter 18.27 RCW; 10
(c) After January 1, 2021, a person who employs anyone, or offers 11
or advertises to employ anyone, to do plumbing work fails to produce 12
evidence of being licensed as a plumbing contractor as required under 13
this chapter; or 14
(d) A contractor violates RCW 18.106.320. 15
(2) A notice of infraction issued under this section shall be 16
personally served on the person or contractor named in the notice by 17
an authorized representative of the department or sent using ((a)) an 18
electronic or nonelectronic method by which the ((mailing)) notice 19
can be tracked or the delivery can be confirmed to the last known 20
address provided to the department of the person named in the notice. 21
Before using an electronic method for the first time under this 22
section, the department must provide the contractor the option to 23
receive communication through a nonelectronic method.24
Sec. 6. RCW 19.28.131 and 2014 c 190 s 2 are each amended to 25
read as follows: 26
Until July 1, 2007, the department shall issue a written warning 27
to any specialty contractor, performing the scope of work defined by 28
rule for the pump and irrigation or domestic pump specialties, not 29
having a valid electrical contractor license. The warning will state 30
that the contractor must be qualified for and apply for a specialty 31
electrical contractor license under the requirements in RCW 19.28.041 32
within ((thirty)) 30 calendar days of the warning. Only one warning 33
will be issued to any contractor. If the contractor fails to comply 34
with this section, the department shall issue a penalty or penalties 35
as authorized in this section to the contractor. Any person, firm, 36
partnership, corporation, or other entity violating any of the 37
provisions of RCW 19.28.010 through 19.28.141 and 19.28.311 through 38
19.28.361 shall be assessed a penalty of not less than ((fifty 39
p. 7 HB 2406
dollars)) $50 or more than ((ten thousand dollars )) $10,000. The 1
department shall set by rule a schedule of penalties for violating 2
RCW 19.28.010 through 19.28.141 and 19.28.311 through 19.28.361. The 3
department shall notify the person, firm, partnership, corporation, 4
or other entity violating any of the provisions of RCW 19.28.010 5
through 19.28.141 and 19.28.311 through 19.28.361 of the amount of 6
the penalty and of the specific violation using ((a)) an electronic 7
or nonelectronic method by which the ((mailing)) notice can be 8
tracked or the delivery can be confirmed sent to the last known 9
address of the assessed party. Before using an electronic method for 10
the first time under this section, the department must provide the 11
person, firm, partnership, corporation, or other entity the option to 12
receive communication through a nonelectronic method. Any penalty is 13
subject to review by an appeal to the board. The filing of an appeal 14
stays the effect of the penalty until the board makes its decision. 15
The appeal shall be filed within ((twenty)) 20 days after notice of 16
the penalty is given to the assessed party using ((a)) an electronic 17
or nonelectronic method by which the ((mailing)) notice can be 18
tracked or the delivery can be confirmed, sent to the last known 19
address of the assessed party and shall be made by filing a written 20
notice of appeal with the department. The notice shall be accompanied 21
by a certified check for ((two hundred dollars )) $200 or ((ten)) 10 22
percent of the penalty amount, whichever is less, but in no event 23
less than ((one hundred dollars )) $100, which shall be returned to 24
the assessed party if the decision of the department is not sustained 25
by the board. If the board sustains the decision of the department, 26
the amount of the check shall be applied by the department to the 27
payment of the per diem and expenses of the members of the board 28
incurred in the matter, and any balance remaining after payment of 29
per diem and expenses shall be paid into the electrical license fund. 30
The hearing and review procedures shall be conducted in accordance 31
with chapter 34.05 RCW. The board shall assign its hearings to an 32
administrative law judge to conduct the hearing and issue a proposed 33
decision and order. The board shall be allowed a minimum of 34
((twenty)) 20 days to review a proposed decision and shall issue its 35
decision no later than the next regularly scheduled board meeting.36
Sec. 7. RCW 19.28.271 and 2011 c 301 s 7 are each amended to 37
read as follows: 38
p. 8 HB 2406
(1) It is unlawful for any person, firm, partnership, 1
corporation, or other entity to employ an individual for purposes of 2
RCW 19.28.161 through 19.28.271 who has not been issued a certificate 3
of competency, a temporary permit, or a training certificate. It is 4
unlawful for any individual to engage in the electrical construction 5
trade or to maintain or install any electrical equipment or 6
conductors without having in his or her possession a certificate of 7
competency, a temporary permit, or a training certificate under RCW 8
19.28.161 through 19.28.271, and photo identification. The department 9
may establish by rule a requirement that the individual also wear and 10
visibly display his or her certificate or permit. 11
(2) Any person, firm, partnership, corporation, or other entity 12
found in violation of RCW 19.28.161 through 19.28.271 shall be 13
assessed a penalty of not less than ((fifty dollars )) $50 or more 14
than ((five hundred dollars )) $500. The department shall set by rule 15
a schedule of penalties for violating RCW 19.28.161 through 16
19.28.271. An appeal may be made to the board as is provided in RCW 17
19.28.131. The appeal shall be filed within ((twenty)) 20 days after 18
the notice of the penalty is given to the assessed party using ((a)) 19
an electronic or nonelectronic method by which the ((mailing)) notice 20
can be tracked or the delivery can be confirmed, sent to the last 21
known address of the assessed party and shall be made by filing a 22
written notice of appeal with the department. Before using an 23
electronic method for the first time under this section, the 24
department must provide the assessed party the option to receive 25
communication through a nonelectronic method. Any equipment 26
maintained or installed by any person who does not possess a 27
certificate of competency under RCW 19.28.161 through 19.28.271 shall 28
not receive an electrical work permit and electrical service shall 29
not be connected or maintained to operate the equipment. Each day 30
that a person, firm, partnership, corporation, or other entity 31
violates RCW 19.28.161 through 19.28.271 is a separate violation.32
(3) A civil penalty shall be collected in a civil action brought 33
by the attorney general in the county wherein the alleged violation 34
arose at the request of the department if any of RCW 19.28.161 35
through 19.28.271 or any rules adopted under RCW 19.28.161 through 36
19.28.271 are violated. 37
Sec. 8. RCW 19.28.341 and 2011 c 301 s 8 are each amended to 38
read as follows: 39
p. 9 HB 2406
(1) The department has the power, in case of serious 1
noncompliance with the provisions of this chapter, to revoke or 2
suspend for such a period as it determines, any electrical or 3
telecommunications contractor license or electrical or 4
telecommunications contractor administrator certificate issued under 5
this chapter. The department shall notify the holder of the license 6
or certificate of the revocation or suspension using ((a)) an 7
electronic or nonelectronic method by which the ((mailing)) notice 8
can be tracked or the delivery can be confirmed. Before using an 9
electronic method for the first time under this section, the 10
department must provide the license or certificate holder the option 11
to receive communication through a nonelectronic method. A revocation 12
or suspension is effective ((twenty)) 20 days after the holder 13
receives the notice. Any revocation or suspension is subject to 14
review by an appeal to the board. The filing of an appeal stays the 15
effect of a revocation or suspension until the board makes its 16
decision. The appeal shall be filed within ((twenty)) 20 days after 17
notice of the revocation or suspension is given using ((a)) an 18
electronic or nonelectronic method by which the ((mailing)) notice 19
can be tracked or the delivery can be confirmed sent to the address 20
of the holder of the license or certificate as shown on the 21
application for the license or certificate, and shall be effected by 22
filing a written notice of appeal with the department, accompanied by 23
a certified check for ((two hundred dollars )) $200, which shall be 24
returned to the holder of the license or certificate if the decision 25
of the department is not sustained by the board. The hearing shall be 26
conducted in accordance with chapter 34.05 RCW. If the board sustains 27
the decision of the department, the ((two hundred dollars )) $200 28
shall be applied by the department to the payment of the per diem and 29
expenses of the members of the board incurred in the matter, and any 30
balance remaining after payment of per diem and expenses shall be 31
paid into the electrical license fund. 32
(2) The department shall immediately suspend the license or 33
certificate of a person who has been certified pursuant to RCW 34
74.20A.320 by the department of social and health services as a 35
person who is not in compliance with a support order. If the person 36
has continued to meet all other requirements for reinstatement during 37
the suspension, reissuance of the license or certificate shall be 38
automatic upon the department's receipt of a release issued by the 39
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department of social and health services stating that the licensee is 1
in compliance with the order. 2
Sec. 9. RCW 19.28.490 and 2014 c 190 s 4 are each amended to 3
read as follows: 4
Any person, firm, partnership, corporation, or other entity 5
violating any of the provisions of this chapter may be assessed a 6
penalty of not less than ((one hundred dollars )) $100 or more than 7
((ten thousand dollars)) $10,000 per violation. The department, after 8
consulting with the board and receiving the board's recommendations, 9
shall set by rule a schedule of penalties for violating this chapter. 10
The department shall notify the person, firm, partnership, 11
corporation, or other entity violating any of these provisions of the 12
amount of the penalty and of the specific violation. The notice shall 13
be sent using ((a)) an electronic or nonelectronic method by which 14
the ((mailing)) notice can be tracked or the delivery can be 15
confirmed to the last known address of the assessed party. Before 16
using an electronic method for the first time under this section, the 17
department must provide the assessed party the option to receive 18
communication through a nonelectronic method. Penalties are subject 19
to review by an appeal to the board. The filing of an appeal stays 20
the effect of the penalty until the board makes its decision. The 21
appeal shall be filed within ((twenty)) 20 days after notice of the 22
penalty is given to the assessed party, and shall be made by filing a 23
written notice of appeal with the department. The notice shall be 24
accompanied by a certified check for ((two hundred dollars )) $200 or 25
((ten)) 10 percent of the penalty amount, whichever is less, but in 26
no event less than ((one hundred dollars )) $100. The check shall be 27
returned to the assessed party if the decision of the department is 28
not sustained by the board. If the board sustains the decision of the 29
department, the amount of the check shall be applied by the 30
department to the payment of the per diem and expenses of the members 31
of the board incurred in the matter, and any balance remaining after 32
payment of per diem and expenses shall be paid into the electrical 33
license fund. The hearing and review procedures shall be conducted in 34
accordance with chapter 34.05 RCW. The board shall assign its 35
hearings to an administrative law judge to conduct the hearing and 36
issue a proposed decision and order. The board shall be allowed a 37
minimum of ((twenty)) 20 days to review a proposed decision and shall 38
p. 11 HB 2406
issue its decision no later than the next regularly scheduled board 1
meeting. 2
Sec. 10. RCW 43.22.435 and 2011 c 301 s 10 are each amended to 3
read as follows: 4
(1)(a) In addition to or in lieu of any other penalty applicable 5
under this chapter, and except as provided in (b) of this subsection, 6
the department may assess a civil penalty of not more than ((one 7
thousand dollars)) $1,000 against a contractor, firm, partnership, or 8
corporation, that fails to obtain a permit before altering a mobile 9
or manufactured home as required under this chapter or rules adopted 10
under this chapter. Each day on which a violation occurs constitutes 11
a separate violation. However, the cumulative penalty for the same 12
occurrence may not exceed ((five thousand dollars)) $5,000.13
(b) The department must adopt a schedule of civil penalties 14
giving due consideration to the appropriateness of the penalty with 15
respect to the gravity of the violation and the history of previous 16
violations. Penalties for subsequent violations, not constituting the 17
same occurrence, committed within two years of a prior violation by 18
the same party or entity, or by an individual who was a principal or 19
officer of the same entity, must be double the amount of the penalty 20
for the prior violation or ((one thousand dollars)) $1,000, whichever 21
is greater. 22
(2)(a) The department may issue a notice of correction before 23
issuing a civil penalty assessment. The notice must include:24
(i) A description of the violation; 25
(ii) A statement of what is required to correct the violation;26
(iii) The date by which the department requires correction to be 27
achieved; and 28
(iv) Notice of the individual or department office that must be 29
contacted to obtain a permit or other compliance information.30
(b) A notice of correction is not a formal enforcement action, is 31
not subject to appeal, and is a public record. 32
(c) If the department issues a notice of correction, it shall not 33
issue a civil penalty for the violation identified in the notice of 34
correction unless the responsible person fails to comply with the 35
notice. 36
(3)(a) The department must issue ((written)) notices of civil 37
penalties imposed under this section, with the reasons for the 38
penalty, using ((a)) an electronic or nonelectronic method by which 39
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the ((mailing)) notice can be tracked or the delivery can be 1
confirmed to the last known address of the party named in the notice. 2
Before using an electronic method for the first time under this 3
subsection, the department must provide the party the option to 4
receive communication through a nonelectronic method.5
(b) If a party desires to contest a notice of civil penalty 6
issued under this section, the party must file a notice of appeal 7
with the department within ((twenty)) 20 days of the department's 8
((mailing)) issuance of the notice of civil penalty. An 9
administrative law judge of the office of administrative hearings 10
will hear and determine the appeal. Appeal proceedings must be 11
conducted pursuant to chapter 34.05 RCW. An appeal of the 12
administrative law judge's determination or order shall be to the 13
superior court. The superior court's decision is subject only to 14
discretionary review under the rules of appellate procedure.15
Sec. 11. RCW 43.22A.080 and 2023 c 36 s 5 are each amended to 16
read as follows: 17
(1) The department may revoke a certificate of manufactured home 18
installation upon the following grounds: 19
(a) The certificate was obtained through error or fraud;20
(b) The holder of the certificate is judged to be incompetent as 21
a result of multiple infractions of the state installation 22
requirements, WAC 296-150I-0300 through 296-150I-0410; or23
(c) The holder has violated a provision of this chapter or a rule 24
adopted to implement this chapter. 25
(2) Before a certificate of manufactured home installation is 26
revoked, the holder must be given ((written)) notice of the 27
department's intention to revoke the certificate, sent using ((a)) an 28
electronic or nonelectronic method by which the ((mailing)) notice 29
can be tracked or the delivery can be confirmed to the holder's last 30
known address. Before using an electronic method for the first time 31
under this section, the department must provide the holder the option 32
to receive communication through a nonelectronic method. The notice 33
shall enumerate the allegations against the holder, and shall give 34
the holder the opportunity to request a hearing. At the hearing, the 35
department and the holder may produce witnesses and give testimony. 36
The hearing shall be conducted in accordance with the provisions of 37
chapter 34.05 RCW. 38
p. 13 HB 2406
Sec. 12. RCW 43.22A.130 and 2011 c 301 s 12 are each amended to 1
read as follows: 2
An authorized representative of the department may issue a notice 3
of infraction if the person supervising the manufactured home 4
installation work fails to produce evidence of having a certificate 5
issued by the department in accordance with this chapter. A notice of 6
infraction issued under this chapter shall be personally served on or 7
sent using ((a)) an electronic or nonelectronic method by which the 8
((mailing)) notice can be tracked or the delivery can be confirmed to 9
the person named in the notice by the authorized representative. 10
Before using an electronic method for the first time under this 11
section, the department must provide the person named in the notice 12
the option to receive communication through a nonelectronic method.13
Sec. 13. RCW 49.12.145 and 2023 c 114 s 12 are each amended to 14
read as follows: 15
(1)(a) If a complainant files a complaint with the department of 16
labor and industries alleging a violation of RCW 49.28.140, the 17
department shall investigate the complaint. 18
(b) The department may not investigate any such alleged violation 19
of rights that occurred more than three years before the date that 20
the complainant filed the complaint. 21
(c) Upon the investigation of a complaint, the department shall 22
issue either a citation and notice of assessment or a determination 23
of compliance, within 90 days after the date on which the department 24
received the complaint, unless the complaint is otherwise resolved. 25
The department may extend the period by providing advance written 26
notice to the complainant and the employer setting forth good cause 27
for an extension of the period and specifying the duration of the 28
extension. 29
(d) The department shall send a citation and notice of assessment 30
or the determination of compliance to both the employer and the 31
complainant by service of process or using ((a)) an electronic or 32
nonelectronic method by which the ((mailing)) citation and notice of 33
assessment or the determination of compliance can be tracked, or the 34
delivery can be confirmed to their last known addresses. Before using 35
an electronic method for the first time under this subsection, the 36
department must provide the employer and complainant the option to 37
receive communication through a nonelectronic method.38
p. 14 HB 2406
(2) If the department of labor and industries investigation finds 1
that the complainant's allegation cannot be substantiated, the 2
department shall issue a closure letter to the complainant and the 3
employer detailing such finding. 4
(3)(a) If the department of labor and industries finds a 5
violation of RCW 49.28.140, the department shall order the employer 6
to pay the department a civil penalty. 7
(b) Except as provided otherwise in this chapter, the maximum 8
penalty is $1,000 for each violation, up to three violations. If 9
there are four or more violations of this chapter for a health care 10
facility, the employer is subject to a civil penalty of $2,500 for 11
the fourth violation, and $5,000 for each subsequent violation.12
(c) The department may not assess a civil penalty if the employer 13
reasonably relied on: (i) A rule related to any of the requirements 14
of RCW 49.28.140; (ii) a written order, ruling, approval, opinion, 15
advice, determination, or interpretation of the director; or (iii) an 16
interpretive or administrative policy issued by the department and 17
filed with the office of the code reviser. In accordance with the 18
department's retention schedule obligations under chapter 40.14 RCW, 19
the department shall maintain a complete and accurate record of all 20
written orders, rulings, approvals, opinions, advice, determinations, 21
and interpretations for purposes of determining whether an employer 22
is immune from civil penalties under (b) of this subsection.23
(4) The department of labor and industries may, at any time, 24
waive or reduce a civil penalty assessed under this section if the 25
director of the department determines that the employer has taken 26
corrective action to resolve the violation. 27
(5) The department of labor and industries shall deposit all 28
civil penalties paid under this section in the supplemental pension 29
fund established under RCW 51.44.033. 30
Sec. 14. RCW 49.12.390 and 2025 c 173 s 2 are each amended to 31
read as follows: 32
(1)(a) If the director, or the director's designee, finds that an 33
employer has violated any of the requirements of RCW 49.12.121 or 34
49.12.123, or a rule or order adopted or variance granted under RCW 35
49.12.121 or 49.12.123, a citation and notice of assessment stating 36
the violations shall be issued to the employer. The citation and 37
notice of assessment shall be in writing, describing the nature of 38
the violation including reference to the standards, rules, or orders 39
p. 15 HB 2406
alleged to have been violated. The citation and penalty assessment 1
must be given to the highest management official available at the 2
workplace or ((be mailed)) sent using an electronic or nonelectronic 3
method to the employer at the workplace. In addition, the department 4
shall ((mail)) send, using an electronic or nonelectronic method, a 5
copy of the citation and penalty assessment to the central personnel 6
office of the employer. Before using an electronic method for the 7
first time under this subsection, the department must provide the 8
employer the option to receive communication through a nonelectronic 9
method. Citations issued under this section must be posted at or near 10
the place where the violation occurred. 11
(b) A first-time citation for failure to obtain a minor work 12
permit or parental or school authorization, for failure to maintain 13
records, or for a violation deemed nonserious by the department must 14
state a specific and reasonable time for abatement of the violation 15
to allow the employer to correct the violation. The department may 16
waive or reduce a civil penalty assessed for a first-time violation 17
under this subsection if the director determines that the employer 18
has taken corrective action to resolve the violation.19
(c) The employer must be assessed a civil penalty as follows:20
(i) No less than $100 and no more than $1,000 for each violation 21
involving failure to obtain a minor work permit or parental or school 22
authorization, for failure to maintain records, or for each other 23
nonserious violation; 24
(ii) No less than $150 and no more than $1,000 for each violation 25
involving failure to comply with hours of work requirements;26
(iii) No less than $300 and no more than $1,000 for each 27
violation involving failure to comply with meal break or rest break 28
requirements; 29
(iv) No less than $1,000 for each violation involving failure to 30
comply with prohibited duty requirements, variance conditions, or 31
minimum wage requirements for minors, or for each other serious 32
violation, except the civil penalty may be no less than $2,000 for 33
each violation in a second or subsequent citation for any of these 34
violations identified in this subsection (1)(c)(iv);35
(v) No less than $15,000 for any violation resulting in the 36
serious physical harm of a minor, which may be doubled where the 37
violation is a willful violation or a repeated violation; and38
p. 16 HB 2406
(vi) No less than $71,000 for any violation resulting in the 1
death of a minor, which may be doubled where the violation is a 2
willful violation or a repeated violation. 3
(d) If the director, or the director's designee, finds that an 4
employer has committed a serious or repeated violation of the 5
requirements of RCW 49.12.121 or 49.12.123, or any rule or order 6
adopted or variance granted under RCW 49.12.121 or 49.12.123, the 7
employer is subject to an additional civil penalty assessment of a 8
maximum of $5,000 for each subsequent day the violation continues. 9
For the purposes of this subsection (1)(d), a serious violation shall 10
be deemed to exist if death or serious physical harm has resulted or 11
is imminent from a condition that exists, or from one or more 12
practices, means, methods, operations, or processes that have been 13
adopted or are in use by the employer, unless the employer did not, 14
and could not with the exercise of reasonable diligence, know of the 15
presence of the violation. 16
(e) The department shall consider the following factors when 17
determining the amount of any penalty assessment under this section: 18
(i) Whether the violation was committed willfully or the violation is 19
a repeat violation; (ii) the size of the employer; (iii) the age of 20
the minor; (iv) the gravity of the violation; (v) the hazards created 21
by the violation; (vi) the penalties for comparable violations under 22
federal law; (vii) the penalty amount necessary to deter future 23
noncompliance; (viii) ensuring the penalty amount is consistent with 24
the purposes of this chapter; and (ix) any other factor warranting an 25
adjustment in the penalty as deemed appropriate by the department.26
(f) Beginning July 1, 2027, and every two years thereafter, the 27
department shall adjust by rule the amounts in (c) and (d) of this 28
subsection for inflation by calculating to the nearest cent using the 29
consumer price index for urban wage earners and clerical workers, 30
CPI-W, or a successor index. 31
(2) The employer shall pay the amount assessed under this section 32
within 30 days of receipt of the penalty assessment or notify the 33
director of the employer's intent to appeal the citation or the 34
penalty assessment as provided in RCW 49.12.400. If an employer fails 35
to pay an assessment under this section after it has become a final 36
and unappealable order, or after the court has entered final judgment 37
in favor of the department, the director may initiate collection 38
procedures in accordance with RCW 49.48.086. 39
p. 17 HB 2406
(3) In addition to any other authority provided in this section, 1
if, upon inspection or investigation, the director, or director's 2
designee, believes that an employer has violated RCW 49.12.121 or 3
49.12.123, or a rule or order adopted or variance granted under RCW 4
49.12.121 or 49.12.123, and that the violation creates a danger from 5
which there is a substantial probability that death or serious 6
physical harm could result to a minor employee, the director, or 7
director's designee, may issue an order immediately restraining the 8
condition, practice, method, process, or means creating the danger in 9
the workplace. An order issued under this subsection may require the 10
employer to take steps necessary to avoid, correct, or remove the 11
danger and may prohibit the presence of a minor in locations or under 12
conditions where the danger exists. 13
(4)(a) The director or the director's designee shall revoke an 14
employer's minor work permit and prohibit the employer from obtaining 15
a minor work permit for no less than 12 months if:16
(i) The employer has been issued a safety and health citation 17
under RCW 49.17.120 containing one or more violations under RCW 18
49.17.180 (1), (2), (4), or (5) or any citation and notice of 19
assessment containing one or more violations of RCW 49.12.121 or 20
49.12.123 or any applicable rule or order, where one or more of the 21
violations caused serious physical harm or death to a minor; or22
(ii) An order has been issued immediately restraining an 23
employer's condition, practice, method, process, or means in the 24
workplace pursuant to subsection (3) of this section or RCW 49.17.130 25
or 49.17.170. 26
(b) Following a revocation under this subsection, a minor work 27
permit may not be reissued to an employer unless the employer has not 28
been issued a citation for any violations of the provisions 29
identified in (a)(i) of this subsection for at least 12 months.30
(c) This subsection does not prohibit the department from 31
revoking, suspending, or modifying a minor work permit for any reason 32
or cause provided for under state law or department rule or policy.33
(5) A person who gives advance notice, without the authority of 34
the director, of an inspection to be conducted under this chapter 35
shall be assessed a civil penalty of not more than ((one thousand 36
dollars)) $1,000. 37
(6) Penalties assessed under this section shall be paid to the 38
director and deposited into the general fund. 39
p. 18 HB 2406
(7) The department shall include in its annual report submitted 1
under RCW 49.12.180 the following information: 2
(a) The number and type of citations and penalties issued and 3
imposed under this section; 4
(b) The number of and reasons for revocations of minor work 5
permits; and 6
(c) The number and nature of workplace injuries involving minors 7
reviewed by the department, including whether those injuries resulted 8
in citations or permit revocations under this section.9
Sec. 15. RCW 49.17.040 and 1973 c 80 s 4 are each amended to 10
read as follows: 11
The director shall make, adopt, modify, and repeal rules and 12
regulations governing safety and health standards for conditions of 13
employment as authorized by this chapter after a public hearing in 14
conformance with the administrative procedure act and the provisions 15
of this chapter. At least ((thirty)) 20 days prior to such public 16
hearing, the director shall ((cause public notice of such hearing to 17
be made in )) provide information of the public hearing and written 18
comment period to newspapers of general circulation in this state ((, 19
of the date, time, and place of such public hearing, along with a 20
general description of the subject matter of the proposed rules and 21
information as to where copies of any rules and regulations proposed 22
for adoption may be obtained and with a solicitation for 23
recommendations in writing or suggestions for inclusion or changes in 24
such rules to be submitted not later than five days prior to such 25
public hearing)). Any preexisting rules adopted by the department of 26
labor and industries relating to health and safety standards in 27
workplaces subject to the jurisdiction of the department shall remain 28
effective insofar as such rules are not inconsistent with the 29
provisions of this chapter. 30
Sec. 16. RCW 49.17.140 and 2021 c 253 s 2 are each amended to 31
read as follows: 32
(1) If after an inspection or investigation the director or the 33
director's authorized representative issues a citation under the 34
authority of RCW 49.17.120 or 49.17.130, the department, within a 35
reasonable time after the termination of such inspection or 36
investigation, shall notify the employer using ((a)) an electronic or 37
nonelectronic method by which the ((mailing)) notice can be tracked 38
p. 19 HB 2406
or the delivery can be confirmed of the penalty to be assessed under 1
the authority of RCW 49.17.180 and shall state that the employer has 2
((fifteen)) 15 working days within which to notify the director that 3
the employer wishes to appeal the citation or assessment of penalty. 4
If, within ((fifteen)) 15 working days from the communication of the 5
notice issued by the director the employer fails to notify the 6
director that the employer intends to appeal the citation or 7
assessment penalty, and no notice is filed by any employee or 8
representative of employees under subsection (4) of this section 9
within such time, the citation and the assessment shall be deemed a 10
final order of the department and not subject to review by any court 11
or agency. 12
(2) If the director has reason to believe that an employer has 13
failed to correct a violation for which the employer was previously 14
cited and which has become a final order, the director shall notify 15
the employer using ((a)) an electronic or nonelectronic method by 16
which the ((mailing)) notice can be tracked or the delivery can be 17
confirmed of such failure to correct the violation and of the penalty 18
to be assessed under RCW 49.17.180 by reason of such failure, and 19
shall state that the employer has ((fifteen)) 15 working days from 20
the communication of such notification and assessment of penalty to 21
notify the director that the employer wishes to appeal the director's 22
notification of the assessment of penalty. If, within ((fifteen)) 15 23
working days from the receipt of notification issued by the director 24
the employer fails to notify the director that the employer intends 25
to appeal the notification of assessment of penalty, the notification 26
and assessment of penalty shall be deemed a final order of the 27
department and not subject to review by any court or agency.28
(3) If the director has reason to believe that an employer 29
violated an order immediately restraining a condition, practice, 30
method, process, or means in the workplace issued under RCW 49.17.130 31
or this section or a notice prohibiting the use of a machine or 32
equipment to which a notice prohibiting such use has been attached, 33
the director shall notify the employer using ((a)) an electronic or 34
nonelectronic method by which the ((mailing)) notice can be tracked 35
or the delivery can be confirmed of such violation of the order and 36
of the penalty to be assessed under RCW 49.17.180 by reason of 37
violation of the order and shall state that the employer has 15 38
working days from the communication of such notification and 39
assessment of penalty to notify the director that the employer wishes 40
p. 20 HB 2406
to appeal the director's notification of the assessment of penalty. 1
If, within 15 working days from the receipt of notification issued by 2
the director (([,])), the employer fails to notify the director that 3
the employer intends to appeal the notification of assessment of 4
penalty, the notification and assessment of penalty shall be deemed a 5
final order of the department and not subject to review by any court 6
or agency. 7
(4) If any employer notifies the director that the employer 8
intends to appeal the citation issued under either RCW 49.17.120 or 9
49.17.130 or notification of the assessment of a penalty issued under 10
subsections (1) or (2) of this section, or if, within ((fifteen)) 15 11
working days from the issuance of a citation under either RCW 12
49.17.120 or 49.17.130 any employee or representative of employees 13
files a notice with the director alleging that the period of time 14
fixed in the citation for the abatement of the violation is 15
unreasonable, the director may reassume jurisdiction over the entire 16
matter, or any portion thereof upon which notice of intention to 17
appeal has been filed with the director pursuant to this subsection. 18
If the director reassumes jurisdiction of all or any portion of the 19
matter upon which notice of appeal has been filed with the director, 20
any redetermination shall be completed and corrective notices of 21
assessment of penalty, citations, or revised periods of abatement 22
completed within a period of ((thirty)) 75 working days. ((The 23
thirty-working-day redetermination period may be extended up to 24
forty-five additional working days upon agreement of all parties to 25
the appeal.)) The redetermination shall then become final subject to 26
direct appeal to the board of industrial insurance appeals within 27
((fifteen)) 15 working days of such redetermination with service of 28
notice of appeal upon the director. In the event that the director 29
does not reassume jurisdiction as provided in this subsection, the 30
director shall promptly notify the state board of industrial 31
insurance appeals of all notifications of intention to appeal any 32
such citations, any such notices of assessment of penalty and any 33
employee or representative of employees notice of intention to appeal 34
the period of time fixed for abatement of a violation and in addition 35
certify a full copy of the record in such appeal matters to the 36
board. The director shall adopt rules of procedure for the 37
reassumption of jurisdiction under this subsection affording 38
employers, employees, and employee representatives notice of the 39
reassumption of jurisdiction by the director, and an opportunity to 40
p. 21 HB 2406
object or support the reassumption of jurisdiction, either in writing 1
or orally at an informal conference to be held prior to the 2
expiration of the redetermination period. Except as otherwise 3
provided under subsection (5) of this section, a notice of appeal 4
filed under this section shall stay the effectiveness of any citation 5
or notice of the assessment of a penalty pending review by the board 6
of industrial insurance appeals, but such appeal shall not stay the 7
effectiveness of any order of immediate restraint issued by the 8
director under the authority of RCW 49.17.130. The board of 9
industrial insurance appeals shall afford an opportunity for a 10
hearing in the case of each such appellant and the department shall 11
be represented in such hearing by the attorney general and the board 12
shall in addition provide affected employees or authorized 13
representatives of affected employees an opportunity to participate 14
as parties to hearings under this subsection. The board shall 15
thereafter make disposition of the issues in accordance with 16
procedures relative to contested cases appealed to the state board of 17
industrial insurance appeals. 18
Upon application by an employer showing that a good faith effort 19
to comply with the abatement requirements of a citation has been made 20
and that the abatement has not been completed because of factors 21
beyond the employer's control, the director after affording an 22
opportunity for a hearing shall issue an order affirming or modifying 23
the abatement requirements in such citation. 24
(5) An appeal of any violation classified and cited as serious, 25
willful, repeated serious violation, or failure to abate a serious 26
violation does not stay abatement dates and requirements except as 27
follows: 28
(a) An employer may request a stay of abatement for any serious, 29
willful, repeated serious violation, or failure to abate a serious 30
violation in a notice of appeal under subsection (4) of this section;31
(b) When the director reassumes jurisdiction of an appeal under 32
subsection (4) of this section, it will include the stay of abatement 33
request. The issued redetermination decision will include a decision 34
on the stay of abatement request. The department shall stay the 35
abatement for any serious, willful, repeated serious violation, or 36
failure to abate a serious violation where the department cannot 37
determine that the preliminary evidence shows a substantial 38
probability of death or serious physical harm to workers. The 39
decision on stay of abatement will be final unless the employer 40
p. 22 HB 2406
renews the request for a stay of abatement in any direct appeal of 1
the redetermination to the board of industrial insurance appeals 2
under subsection (4) of this section; 3
(c) The board of industrial insurance appeals shall adopt rules 4
necessary for conducting an expedited review on any stay of abatement 5
requests identified in the employer's notice of appeal, and shall 6
issue a final decision within ((forty-five)) 45 working days of the 7
board's notice of filing of appeal. This rule making shall be 8
initiated in 2011; 9
(d) Affected employees or their representatives must be afforded 10
an opportunity to participate as parties in an expedited review for 11
stay of abatement; 12
(e) The board shall grant a stay of an abatement for a serious, 13
willful, repeated serious violation, or failure to abate a serious 14
violation where there is good cause for a stay unless based on the 15
preliminary evidence it is more likely than not that a stay would 16
result in death or serious physical harm to a worker;17
(f) As long as a motion to stay abatement is pending all 18
abatement requirements will be stayed. 19
(6) When the board of industrial insurance appeals denies a stay 20
of abatement and abatement is required while the appeal is 21
adjudicated, the abatement process must be the same process as the 22
process required for abatement upon a final order.23
(7) The department shall develop rules necessary to implement 24
subsections (5) and (6) of this section. In an application for a stay 25
of abatement, the department will not grant a stay when it can 26
determine that the preliminary evidence shows a substantial 27
probability of death or serious physical harm to workers. The board 28
will not grant a stay where based on the preliminary evidence it is 29
more likely than not that a stay would result in death or serious 30
physical harm to a worker. This rule making shall be initiated in 31
2011. 32
(8) Before using an electronic method for the first time under 33
subsections (1) through (3) of this section, the department must 34
provide the employer the option to receive communication through a 35
nonelectronic method.36
Sec. 17. RCW 49.17.160 and 2021 c 253 s 3 are each amended to 37
read as follows: 38
p. 23 HB 2406
(1) No person shall discharge or in any manner discriminate 1
against any employee because such employee has filed any complaint or 2
instituted or caused to be instituted any proceeding under or related 3
to this chapter, or has testified or is about to testify in any such 4
proceeding or because of the exercise by such employee on behalf of 5
himself or herself or others of any right afforded by this chapter. 6
Prohibited discrimination includes an action that would deter a 7
reasonable employee from exercising their rights under this chapter.8
(2) Any employee who believes that he or she has been discharged 9
or otherwise discriminated against by any person in violation of this 10
section may, within 90 days after such violation occurs, file a 11
complaint with the director alleging such discrimination. The 12
department may, at its discretion, extend the time period on 13
recognized equitable principles or due to extenuating circumstances.14
(3) Within 90 days of the receipt of the complaint filed under 15
this section, the director shall notify the complainant and the 16
employer of his or her determination under subsections (4) and (5) of 17
this section unless the matter is otherwise resolved. The department 18
may extend the period by providing advance written notice to the 19
complainant and the employer setting forth good cause for an 20
extension of the period, and specifying the duration of the 21
extension. 22
(4)(a) If the director determines that the provisions of this 23
section have been violated, the director will issue a citation and 24
notice of assessment describing the violation to the employer, 25
ordering all appropriate relief, and may assess a civil penalty.26
(b) Appropriate relief may include, but is not limited to, the 27
following: 28
(i) Restoring the complainant to the position of employment held 29
by the complainant when the discrimination occurred, or restoring the 30
complainant to an equivalent position with equivalent employment 31
hours, work schedule, benefits, pay, and other terms and conditions 32
of employment; and 33
(ii) Ordering the employer to make payable to the complainant 34
earnings that the complainant did not receive due to the employer's 35
discriminatory action, including interest of one percent per month on 36
all earnings owed. The earnings and interest owed will be calculated 37
from the first date earnings were owed to the employee.38
(c) A civil penalty not to exceed the maximum penalty for a 39
serious violation under this chapter may be assessed for the first 40
p. 24 HB 2406
occurrence. A civil penalty not to exceed the maximum penalty for a 1
repeat violation under this chapter may be assessed for each repeat 2
occurrence. Civil penalties are not contingent upon relief being 3
granted to the worker. 4
(5) If the director finds there is insufficient evidence to 5
determine that the provisions of this section have been violated, the 6
director will issue a letter of closure and the employee may 7
institute the action on his or her own behalf within 30 days of such 8
determination. In any such action the superior court shall have 9
jurisdiction, for cause shown, to restrain violations of subsection 10
(1) of this section and order all appropriate relief including 11
rehiring or reinstatement of the complainant to his or her former 12
position with back pay. 13
(6) The department must notify the employer and the complainant 14
of a citation and notice of assessment issued under subsection (4) of 15
this section using ((a)) an electronic or nonelectronic method by 16
which the ((mailing)) citation and notice of assessment can be 17
tracked or the delivery can be confirmed. Before using an electronic 18
method for the first time under this subsection, the department must 19
provide the employer and the complainant the option to receive 20
communication through a nonelectronic method. Citations and notices 21
of assessments shall state that the employer has 30 days within which 22
to notify the department that the employer wishes to appeal the 23
citation or notice of assessment, and that the complainant has 15 24
working days within which to notify the department that the 25
complainant wishes to appeal the order of appropriate relief in the 26
notice of assessment. If, within 30 days from the communication of 27
the notice issued by the director, the employer fails to notify the 28
department that the employer intends to appeal the citation or notice 29
of assessment, and no notice of appeal of the order of appropriate 30
relief is filed by the complainant within such time, the citation and 31
notice of assessment shall be deemed a final order of the department 32
and not subject to review by any court or agency. 33
(7) If an employer or complainant notifies the department of an 34
appeal, the department may reassume jurisdiction according to the 35
timeline, process for hearing, and issuance of corrective notices of 36
redetermination under RCW 49.17.140(4). The redetermination shall 37
become final subject to direct appeal by an employer or complainant 38
to the board of industrial insurance appeals within 15 working days 39
of such redetermination with service of notice of appeal upon the 40
p. 25 HB 2406
director. In the event that the director does not reassume 1
jurisdiction as provided in this subsection, the director shall 2
promptly notify the state board of industrial insurance appeals of 3
all notifications of intention to appeal the citation and notice of 4
assessment and certify a full copy of the record in such appeal 5
matters to the board. The board of industrial insurance appeals shall 6
afford an opportunity for a hearing in the case of each such 7
appellant and the department shall be represented in such hearing by 8
the attorney general and the board shall in addition provide the 9
complainant an opportunity to participate as a party to hearings of 10
employer appeals under this subsection and provide the employer an 11
opportunity to participate as a party to hearings of complainant 12
appeals under this subsection. The board shall thereafter make 13
disposition of the issues in accordance with procedures relative to 14
contested cases appealed to the state board of industrial insurance 15
appeals. A notice of appeal filed under this section shall stay the 16
effectiveness of any citation or notice of assessment except orders 17
of reinstatement pending review by the board of industrial insurance 18
appeals. 19
(8) Civil penalties imposed under this section shall be paid to 20
the director for deposit in the supplemental pension fund established 21
in RCW 51.44.033. 22
(9) Collections of amounts owed for unpaid citations and notices 23
of assessment will be handled pursuant to the procedures outlined in 24
RCW 51.48.120 through 51.48.150. 25
(10) Nothing in this section diminishes the rights, privileges, 26
or remedies of any employee under any federal or state law or under 27
any collective bargaining agreement. The department and complainant 28
may pursue remedies in superior court that are outside the board of 29
industrial insurance appeals' jurisdiction. 30
Sec. 18. RCW 49.26.110 and 2011 c 301 s 14 are each amended to 31
read as follows: 32
(1) No employee or other individual is eligible to do work 33
governed by this chapter unless issued a certificate by the 34
department. 35
(2) To qualify for a certificate: 36
(a) Certified asbestos workers must have successfully completed a 37
four-day training course. Certified asbestos supervisors must have 38
completed a five-day training course. Training courses shall be 39
p. 26 HB 2406
provided or approved by the department; shall cover such topics as 1
the health and safety aspects of the removal and encapsulation of 2
asbestos, including but not limited to the federal and state 3
standards regarding protective clothing, respirator use, disposal, 4
air monitoring, cleaning, and decontamination; and shall meet such 5
additional qualifications as may be established by the department by 6
rule for the type of certification sought. The department may require 7
the successful completion of annual refresher courses provided or 8
approved by the department for continued certification as an asbestos 9
worker or supervisor. However, the authority of the director to adopt 10
rules implementing this section is limited to rules that are 11
specifically required, and only to the extent specifically required, 12
for the standards to be as stringent as the applicable federal laws 13
governing work subject to this chapter; and 14
(b) All applicants for certification as asbestos workers or 15
supervisors must pass an examination in the type of certification 16
sought which shall be provided or approved by the department.17
These requirements are intended to represent the minimum 18
requirements for certification and shall not preclude contractors or 19
employers from providing additional education or training.20
(3) The department shall provide for the reciprocal certification 21
of any individual trained to engage in asbestos projects in another 22
state when the prior training is shown to be substantially similar to 23
the training required by the department. Nothing shall prevent the 24
department from requiring such individuals to take an examination or 25
refresher course before certification. 26
(4) The department may deny, suspend, or revoke a certificate, as 27
provided under RCW 49.26.140, for failure of the holder to comply 28
with any requirement of this chapter or chapter 49.17 RCW, or any 29
rule adopted under those chapters, or applicable health and safety 30
standards and regulations. In addition to any penalty imposed under 31
RCW 49.26.016, the department may suspend or revoke any certificate 32
issued under this chapter for a period of not less than six months 33
upon the following grounds: 34
(a) The certificate was obtained through error or fraud; or35
(b) The holder thereof is judged to be incompetent to carry out 36
the work for which the certificate was issued. 37
Before any certificate may be denied, suspended, or revoked, the 38
holder thereof shall be given ((written)) notice of the department's 39
intention to do so, ((mailed)) using ((a)) an electronic or 40
p. 27 HB 2406
nonelectronic method by which the ((mailing)) notice can be tracked 1
or the delivery can be confirmed to the holder's last known address. 2
Before using an electronic method for the first time under this 3
section, the department must provide the holder the option to receive 4
communication through a nonelectronic method. The notice shall 5
enumerate the allegations against such holder, and shall give him or 6
her the opportunity to request a hearing before the department. At 7
such hearing, the department and the holder shall have opportunity to 8
produce witnesses and give testimony. 9
(5) A denial, suspension, or revocation order may be appealed to 10
the board of industrial insurance appeals within ((fifteen)) 15 11
working days after the denial, suspension, or revocation order is 12
entered. The notice of appeal may be filed with the department or the 13
board of industrial insurance appeals. The board of industrial 14
insurance appeals shall hold the hearing in accordance with 15
procedures established in RCW 49.17.140. Any party aggrieved by an 16
order of the board of industrial insurance appeals may obtain 17
superior court review in the manner provided in RCW 49.17.150.18
(6) Each person certified under this chapter shall display, upon 19
the request of an authorized representative of the department, valid 20
identification issued by the department. 21
Sec. 19. RCW 49.40.060 and 2011 c 301 s 15 are each amended to 22
read as follows: 23
The director of labor and industries, or his or her deputy 24
holding the hearing shall, after such hearing, determine the amount 25
due from the employer to the employee, and shall make findings of 26
fact and an award in accordance therewith, which findings and award 27
shall be filed in the office of the director and a copy thereof 28
((served upon )) delivered to the employer and ((upon)) the employee 29
using ((a)) an electronic or nonelectronic method by which the 30
((mailing)) findings and award can be tracked or the delivery can be 31
confirmed directed to their last known ((post office )) address. 32
Before using an electronic method for the first time under this 33
section, the director or his or her deputy must provide the employer 34
and the employee the option to receive communication through a 35
nonelectronic method.36
Sec. 20. RCW 49.46.320 and 2022 c 281 s 3 are each amended to 37
read as follows: 38
p. 28 HB 2406
(1)(a) If a driver files a complaint with the department alleging 1
that a transportation network company failed to provide any 2
compensation amounts due to the driver under RCW 49.46.300, the 3
department shall investigate the complaint under this section. Unless 4
otherwise resolved, the department shall issue either a citation and 5
notice of assessment or a determination of compliance no later than 6
60 days after the date on which the department received the 7
compensation-related complaint. The department may extend the time 8
period by providing advance ((written)) notice to the driver and the 9
transportation network company setting forth good cause for an 10
extension of the time period and specifying the duration of the 11
extension. 12
(b) The department may not investigate any alleged compensation-13
related violation that occurred more than three years before the date 14
that the driver filed the compensation-related complaint.15
(c) The department shall send the citation and notice of 16
assessment or the determination of compliance to both the 17
transportation network company and the driver ((by service of process 18
or)) using ((a)) an electronic or nonelectronic method by which the 19
((mailing)) notice can be tracked or the delivery can be confirmed to 20
their last known addresses. A transportation network company may 21
designate ((a mailing address of record for service, and additionally 22
may provide an email address to which the department shall direct 23
electronic courtesy copies of mailed correspondence, if such email 24
address is provided)) an electronic or physical address of record for 25
service. Before using an electronic method for the first time under 26
this subsection, the department must provide the transportation 27
network company and the driver the option to receive communication 28
through a nonelectronic method. 29
(2) If the department determines that a transportation network 30
company has violated a compensation requirement in RCW 49.46.300 and 31
issues to the transportation network company a citation and notice of 32
assessment, the department may order the transportation network 33
company to pay drivers all compensation owed, including interest of 34
one percent per month on all compensation owed, to the driver. The 35
compensation and interest owed must be calculated from the first date 36
compensation was owed to the driver, except that the department may 37
not order the transportation network company to pay any compensation 38
and interest that were owed more than three years before the date the 39
complaint was filed with the department. 40
p. 29 HB 2406
(3) If the department determines that the compensation-related 1
violation was a willful violation, and the transportation network 2
company fails to take corrective action, the department also may 3
order the transportation network company to pay the department a 4
civil penalty as specified in (a) of this subsection.5
(a) A civil penalty for a willful violation shall be not less 6
than $1,000 or an amount equal to 10 percent of the total amount of 7
unpaid compensation per claimant, whichever is greater. The maximum 8
civil penalty for a willful violation of requirements in RCW 9
49.46.300 shall be $20,000 per claimant. 10
(b) The department may not assess a civil penalty if the 11
transportation network company reasonably relied on: (i) A rule 12
related to any requirements in this section; (ii) a written order, 13
ruling, approval, opinion, advice, determination, or interpretation 14
of the director; or (iii) an interpretive or administrative policy 15
issued by the department and filed with the office of the code 16
reviser. In accordance with the department's retention schedule 17
obligations under chapter 40.14 RCW, the department shall maintain a 18
complete and accurate record of all written orders, rulings, 19
approvals, opinions, advice, determinations, and interpretations for 20
purposes of determining whether a transportation network company is 21
immune from civil penalties under this subsection (3)(b).22
(c) The department shall waive any civil penalty assessed against 23
a transportation network company under this section if the 24
transportation network company is not a repeat willful violator, and 25
the director determines that the transportation network company has 26
provided payment to the driver of all compensation that the 27
department determined that the transportation network company owed to 28
the driver, including interest, within 30 days of the transportation 29
network company's receipt of the citation and notice of assessment 30
from the department. 31
(d) The department may waive or reduce at any time a civil 32
penalty assessed under this section if the director determines that 33
the transportation network company paid all compensation and interest 34
owed to a driver. 35
(e) The department shall deposit civil penalties paid under this 36
section in the supplemental pension fund established under RCW 37
51.44.033. 38
(4) Upon payment by a transportation network company, and 39
acceptance by a driver, of all compensation and interest assessed by 40
p. 30 HB 2406
the department in a citation and notice of assessment issued to the 1
transportation network company, the fact of such payment by the 2
transportation network company, and of such acceptance by the driver, 3
shall: (a) Constitute a full and complete satisfaction by the 4
transportation network company of all specific requirements of RCW 5
49.46.300 addressed in the citation and notice of assessment; and (b) 6
bar the driver from initiating or pursuing any court action or other 7
judicial or administrative proceeding, including arbitration, based 8
on the specific requirements addressed in the citation and notice of 9
assessment. The citation and notice of assessment shall include a 10
notification and summary of the specific requirements of RCW 11
49.46.300. 12
(5) The applicable statute of limitations for civil actions is 13
tolled during the department's investigation of a driver's complaint 14
against a transportation network company. For the purposes of this 15
subsection, the department's investigation begins on the date the 16
driver files the complaint with the department and ends when: (a) The 17
complaint is finally determined through a final and binding citation 18
and notice of assessment or determination of compliance; or (b) the 19
department notifies the transportation network company and the driver 20
in writing that the complaint has been otherwise resolved or that the 21
driver has elected to terminate the department's administrative 22
action under subsection (12) of this section. 23
(6) A person, firm, or corporation aggrieved by a citation and 24
notice of assessment or a determination of compliance issued by the 25
department under this section or the assessment of a civil penalty 26
due to a determination of status as a repeat willful violator may 27
appeal the citation and notice of assessment, the determination of 28
compliance, or the assessment of a civil penalty to the director by 29
filing a notice of appeal with the director within 30 days of the 30
department's ((service)) notice, as provided in subsection (1) of 31
this section, on the aggrieved party of the citation and notice of 32
assessment, the determination of compliance, or the assessment of a 33
civil penalty. A citation and notice of assessment, a determination 34
of compliance, or an assessment of a civil penalty not appealed 35
within 30 days is final and binding, and not subject to further 36
appeal. 37
(7) A notice of appeal filed with the director under this section 38
shall stay the effectiveness of the citation and notice of 39
assessment, the determination of compliance, or the assessment of a 40
p. 31 HB 2406
civil penalty pending final review of the appeal by the director as 1
provided for in chapter 34.05 RCW. 2
(8) Upon receipt of a notice of appeal, the director shall assign 3
the hearing to an administrative law judge of the office of 4
administrative hearings to conduct the hearing and issue an initial 5
order. The hearing and review procedures shall be conducted in 6
accordance with chapter 34.05 RCW, and the standard of review by the 7
administrative law judge of an appealed citation and notice of 8
assessment, an appealed determination of compliance, or an appealed 9
assessment of a civil penalty shall be de novo. Any party who seeks 10
to challenge an initial order shall file a petition for 11
administrative review with the director within 30 days after service 12
of the initial order. The director shall conduct administrative 13
review in accordance with chapter 34.05 RCW. 14
(9) The director shall issue all final orders after appeal of the 15
initial order. The final order of the director is subject to judicial 16
review in accordance with chapter 34.05 RCW. 17
(10) Orders that are not appealed within the time period 18
specified in this section and chapter 34.05 RCW are final and 19
binding, and not subject to further appeal. 20
(11) Absent good cause, a transportation network company that 21
fails to allow adequate inspection of records in an investigation by 22
the department under this chapter within a reasonable time period may 23
not use such records in any appeal under this section to challenge 24
the correctness of any determination by the department of wages owed 25
or penalties assessed. 26
(12) A driver who has filed a complaint under this section with 27
the department may elect to terminate the department's administrative 28
action, thereby preserving any private right of action, if any 29
exists, by providing written notice to the department within 10 30
business days after the driver's receipt of the department's citation 31
and notice of assessment. 32
(13) If the driver elects to terminate the department's 33
administrative action: (a) The department shall immediately 34
discontinue its action against the transportation network company; 35
(b) the department shall vacate a citation and notice of assessment 36
already issued by the department to the transportation network 37
company; and (c) the citation and notice of assessment, and any 38
related findings of fact or conclusions of law by the department, and 39
any payment or offer of payment by the transportation network company 40
p. 32 HB 2406
of the compensation, including interest, assessed by the department 1
in the citation and notice of assessment, shall not be admissible in 2
any court action or other judicial or administrative proceeding.3
(14) Nothing in this section shall be construed to limit or 4
affect: (a) The right of any driver to pursue any judicial, 5
administrative, or other action available with respect to a 6
transportation network company; (b) the right of the department to 7
pursue any judicial, administrative, or other action available with 8
respect to a driver that is identified as a result of a complaint for 9
a violation of RCW 49.46.300; or (c) the right of the department to 10
pursue any judicial, administrative, or other action available with 11
respect to a transportation network company in the absence of a 12
complaint for a violation of RCW 49.46.300. For purposes of this 13
subsection, "driver" means a driver other than a driver who has filed 14
a complaint with the department and who thereafter has elected to 15
terminate the department's administrative action as provided in 16
subsection (1) of this section. 17
(15) After a final order is issued under this section, and 18
((served)) sent as provided in subsection (1) of this section, if a 19
transportation network company defaults in the payment of: (a) Any 20
compensation determined by the department to be owed to a driver, 21
including interest; or (b) any civil penalty ordered by the 22
department under this section, the director may file with the clerk 23
of any county within the state a warrant in the amount of the payment 24
plus any filing fees. The clerk of the county in which the warrant is 25
filed shall immediately designate a superior court cause number for 26
the warrant, and the clerk shall cause to be entered in the judgment 27
docket under the superior court cause number assigned to the warrant, 28
the name of the transportation network company mentioned in the 29
warrant, the amount of payment due plus any filing fees, and the date 30
when the warrant was filed. The aggregate amount of the warrant as 31
docketed becomes a lien upon the title to, and interest in, all real 32
and personal property of the transportation network company against 33
whom the warrant is issued, the same as a judgment in a civil case 34
docketed with the superior court clerk. The sheriff shall proceed 35
upon the warrant in all respects and with like effect as prescribed 36
by law with respect to execution or other process issued against 37
rights or property upon judgment in a court of competent 38
jurisdiction. The warrant so docketed is sufficient to support the 39
issuance of writs of garnishment in favor of the state in a manner 40
p. 33 HB 2406
provided by law in case of judgment, wholly or partially unsatisfied. 1
The clerk of the court is entitled to a filing fee which will be 2
added to the amount of the warrant. A copy of the warrant shall be 3
served on the transportation network company, as provided in 4
subsection (1) of this section, within three days of filing with the 5
clerk. 6
(16)(a) The director may issue to any person, firm, corporation, 7
other entity, municipal corporation, political subdivision of the 8
state, public corporation, or any agency of the state, a notice and 9
order to withhold and deliver property of any kind when he or she has 10
reason to believe that there is in the possession of the person, 11
firm, corporation, other entity, municipal corporation, political 12
subdivision of the state, public corporation, or agency of the state, 13
property that is or will become due, owing, or belonging to a 14
transportation network company upon whom a notice of assessment has 15
been served by the department for payments or civil penalties due to 16
the department. The effect of a notice and order is continuous from 17
the date the notice and order is first made until the liability out 18
of which the notice and order arose is satisfied or becomes 19
unenforceable because of lapse of time. The department shall release 20
the notice and order when the liability out of which the notice and 21
order arose is satisfied or becomes unenforceable by reason of lapse 22
of time and shall notify the person against whom the notice and order 23
was made that the notice and order has been released.24
(b) The notice and order to withhold and deliver must be served 25
by the sheriff of the county or by the sheriff's deputy, by certified 26
mail, return receipt requested, or by the director. A person, firm, 27
corporation, other entity, municipal corporation, political 28
subdivision of the state, public corporation, or agency of the state 29
upon whom service has been made shall answer the notice within 20 30
days exclusive of the day of service, under oath and in writing, and 31
shall make true answers to the matters inquired of in the notice and 32
order. Upon service of the notice and order, if the party served 33
possesses any property that may be subject to the claim of the 34
department, the party shall promptly deliver the property to the 35
director. The director shall hold the property in trust for 36
application on the transportation network company's indebtedness to 37
the department, or for return without interest, in accordance with a 38
final determination of a petition for review. In the alternative, the 39
party shall furnish a good and sufficient surety bond satisfactory to 40
p. 34 HB 2406
the director conditioned upon final determination of liability. If a 1
party served and named in the notice fails to answer the notice 2
within the time prescribed in this section, the court may render 3
judgment by default against the party for the full amount claimed by 4
the director in the notice, together with costs. If a notice is 5
served upon a transportation network company and the property subject 6
to it is compensation, the transportation network company may assert 7
in the answer all exemptions provided for by chapter 6.27 RCW to 8
which the compensation earner is entitled. 9
(c) As an alternative to the methods of service described in this 10
section, the department may electronically serve a financial 11
institution with a notice and order to withhold and deliver by 12
providing a list of its outstanding warrants, except those for which 13
a payment agreement is in good standing, to the department of 14
revenue. The department of revenue may include the warrants provided 15
by the department in a notice and order to withhold and deliver 16
served under RCW 82.32.235(3). A financial institution that is served 17
with a notice and order to withhold and deliver under this subsection 18
(16)(c) must answer the notice within the time period applicable to 19
service under RCW 82.32.235(3). The department and the department of 20
revenue may adopt rules to implement this subsection (16)(c).21
(17)(a) In addition to the procedure for collection of 22
compensation owed, including interest, and civil penalties as set 23
forth in this section, the department may recover compensation owed, 24
including interest, and civil penalties assessed under RCW 49.48.083 25
in a civil action brought in a court of competent jurisdiction of the 26
county where the violation is alleged to have occurred.27
(b) The department may use the procedures under this section to 28
foreclose compensation liens established under chapter 60.90 RCW. 29
When the department is foreclosing on a compensation lien, the date 30
the compensation lien was originally filed shall be the date by which 31
priority is determined, regardless of the date the warrant is filed 32
under this section. 33
(18) Whenever any transportation network company quits business, 34
sells out, exchanges, or otherwise disposes of the transportation 35
network company's business or stock of goods, any person who becomes 36
a successor to the business becomes liable for the full amount of any 37
outstanding citation and notice of assessment or penalty against the 38
transportation network company's business under this chapter if, at 39
the time of the conveyance of the business, the successor has: (a) 40
p. 35 HB 2406
Actual knowledge of the fact and amount of the outstanding citation 1
and notice of assessment; or (b) a prompt, reasonable, and effective 2
means of accessing and verifying the fact and amount of the 3
outstanding citation and notice of assessment from the department. If 4
the citation and notice of assessment or penalty is not paid in full 5
by the transportation network company within 10 days of the date of 6
the sale, exchange, or disposal, the successor is liable for the 7
payment of the full amount of the citation and notice of assessment 8
or penalty, and payment thereof by the successor must, to the extent 9
thereof, be deemed a payment upon the purchase price. If the payment 10
is greater in amount than the purchase price, the amount of the 11
difference becomes a debt due the successor from the transportation 12
network company. 13
(19) This section does not affect other collection remedies that 14
are otherwise provided by law. 15
Sec. 21. RCW 49.46.330 and 2022 c 281 s 4 are each amended to 16
read as follows: 17
(1) If a driver files a complaint with the department alleging a 18
violation of any noncompensation requirement of RCW 49.46.300 (7) 19
through (10) and (12) through (14), the department shall investigate 20
the complaint under this section. 21
(a) The department may not investigate any such alleged violation 22
that occurred more than three years before the date that the driver 23
filed the complaint or prior to this law going into effect.24
(b) If a driver files a timely complaint with the department, the 25
department will investigate the complaint and issue either a citation 26
assessing a civil penalty or a closure letter within 60 days after 27
the date on which the department received the complaint, unless the 28
complaint is otherwise resolved. The department may extend the period 29
by providing advance ((written)) notice to the driver and the 30
transportation network company setting forth good cause for an 31
extension of the period, and specifying the duration of the 32
extension. 33
(c) The department shall send notice of either a citation and 34
notice of assessment or a citation assessing a civil penalty or the 35
closure letter to both the transportation network company and the 36
driver ((by service of process or by United States mail )) using ((a)) 37
an electronic or nonelectronic method by which delivery of such 38
((written)) notice to the transportation network company can be 39
p. 36 HB 2406
tracked and confirmed. A transportation network company may designate 1
((a mailing address of record for service, and additionally may 2
provide an email address to which the department shall direct 3
electronic courtesy copies of mailed correspondence, if such email 4
address is provided)) an electronic or physical address of record for 5
service. Before using an electronic method for the first time under 6
this subsection, the department must provide the transportation 7
network company and the driver the option to receive communication 8
through a nonelectronic method. 9
(2) If the department's investigation finds that the driver's 10
allegation cannot be substantiated, the department shall issue a 11
closure letter to the driver and the transportation network company 12
detailing such finding. 13
(3) If the department determines that the violation was a willful 14
violation, and the transportation network company fails to take 15
corrective action, the department may order the transportation 16
network company to pay the department a civil penalty as specified in 17
(a) of this subsection. 18
(a) A citation assessing a civil penalty for a willful violation 19
will be $1,000 for each willful violation. For a repeat willful 20
violator, the citation assessing a civil penalty will not be less 21
than $2,000 for each repeat willful violation per claimant, but no 22
greater than $20,000 for each repeat willful violation per claimant.23
(b) The department may not issue a citation assessing a civil 24
penalty if the transportation network company reasonably relied on: 25
(i) A written order, ruling, approval, opinion, advice, 26
determination, or interpretation of the director; or (ii) an 27
interpretive or administrative policy issued by the department and 28
filed with the office of the code reviser. In accordance with the 29
department's retention schedule obligations under chapter 40.14 RCW, 30
the department shall maintain a complete and accurate record of all 31
written orders, rulings, approvals, opinions, advice, determinations, 32
and interpretations for purposes of determining whether a 33
transportation network company is immune from civil penalties under 34
this subsection (3)(b). 35
(c) The department may, at any time, waive or reduce a civil 36
penalty assessed under this section if the director determines that 37
the transportation network company has taken corrective action to 38
resolve the violation. 39
p. 37 HB 2406
(d) The department shall deposit civil penalties paid under this 1
section in the supplemental pension fund established under RCW 2
51.44.033. 3
(e) If the department determines that a transportation network 4
company has violated RCW 49.46.300(12), and issues to the 5
transportation network company a citation and notice of assessment, 6
the department may order the transportation network company to pay 7
all owed remittance payments as required under RCW 49.46.300(12). The 8
department shall deposit all owed remittance payments in the driver 9
resource center fund. 10
(4) For purposes of this section, the following definitions 11
apply: 12
(a) "Repeat willful violator" means any transportation network 13
company that has been the subject of a final and binding citation for 14
a willful violation of one or more rights under this chapter and all 15
applicable rules, within three years of the date of issuance of the 16
most recent citation for a willful violation of one or more such 17
rights. 18
(b) "Willful" means a knowing and intentional action that is 19
neither accidental nor the result of a bona fide dispute.20
(5) A person, firm, or corporation aggrieved by a citation 21
assessing a civil penalty issued by the department under this section 22
may appeal the citation assessing a civil penalty to the director by 23
filing a notice of appeal with the director within 30 days of the 24
department's issuance of the citation assessing a civil penalty. A 25
citation assessing a civil penalty not appealed within 30 days is 26
final and binding, and not subject to further appeal.27
(6) A notice of appeal filed with the director under this section 28
stays the effectiveness of the citation assessing a civil penalty 29
pending final review of the appeal by the director as provided for in 30
chapter 34.05 RCW. 31
(7) Upon receipt of a notice of appeal, the director shall assign 32
the hearing to an administrative law judge of the office of 33
administrative hearings to conduct the hearing and issue an initial 34
order. The hearing and review procedures must be conducted in 35
accordance with chapter 34.05 RCW, and the standard of review by the 36
administrative law judge of an appealed citation assessing a civil 37
penalty must be de novo. Any party who seeks to challenge an initial 38
order shall file a petition for administrative review with the 39
director within 30 days after service of the initial order. The 40
p. 38 HB 2406
director shall conduct administrative review in accordance with 1
chapter 34.05 RCW. 2
(8) The director shall issue all final orders after appeal of the 3
initial order. The final order of the director is subject to judicial 4
review in accordance with chapter 34.05 RCW. 5
(9) Orders that are not appealed within the period specified in 6
this section and chapter 34.05 RCW are final and binding, and not 7
subject to further appeal. 8
(10) Absent good cause, a transportation network company that 9
fails to allow adequate inspection of records in an investigation by 10
the department under this section within a reasonable time period may 11
not use such records in any appeal under such rules to challenge the 12
correctness of any determination by the department of penalties 13
assessed. 14
(11) Collections of unpaid citations assessing civil penalties 15
will be handled pursuant to the procedures outlined in RCW 49.48.086.16
(12) If the department determines that a transportation network 17
company has violated the requirements in RCW 49.46.300(12) to collect 18
and remit the established fee, and issues to the transportation 19
network company a citation and notice of assessment, the department 20
may order the transportation network company to pay all owed 21
remittance payments as required under RCW 49.46.300(12). The 22
department shall deposit all unpaid remittance amounts into the 23
driver resource center fund ((established)) created in RCW 49.46.310.24
Sec. 22. RCW 49.46.340 and 2022 c 281 s 5 are each amended to 25
read as follows: 26
(1) It is unlawful for a transportation network company to 27
interfere with, restrain, or deny the exercise of any driver right 28
provided under or in connection with RCW 49.46.300 and 49.46.210(5). 29
This means a transportation network company may not use a driver's 30
exercise of any of the rights provided under RCW 49.46.300 and 31
49.46.210(5) as a factor in any action that adversely affects the 32
driver's use of the transportation network. 33
(2) It is unlawful for a transportation network company to adopt 34
or enforce any policy that counts the use of earned paid sick time 35
for a purpose authorized under RCW 49.46.210(1) (b) and (c) as time 36
off the platform that may lead to or result in temporary or permanent 37
deactivation by the transportation network company against the 38
driver. 39
p. 39 HB 2406
(3) It is unlawful for a transportation network company to take 1
any adverse action against a driver because the driver has exercised 2
their rights provided under RCW 49.46.300 and 49.46.210(5). Such 3
rights include, but are not limited to: Filing an action, or 4
instituting or causing to be instituted any proceeding under or 5
related to RCW 49.46.300 and 49.46.210(5), or testifying or intending 6
to testify in any such proceeding related to any rights provided 7
under RCW 49.46.300 and 49.46.210(5). 8
(4) Adverse action means any action taken or threatened by a 9
transportation network company against a driver for the driver's 10
exercise of rights under RCW 49.46.300 and 49.46.210(5).11
(5) A driver who believes that he or she was subject to 12
retaliation by a transportation network company for the exercise of 13
any driver right under RCW 49.46.300 and 49.46.210(5) may file a 14
complaint with the department within 180 days of the alleged 15
retaliatory action. The department may, at its discretion, extend the 16
180-day period on recognized equitable principles or because of 17
extenuating circumstances beyond the control of the department. The 18
department may extend the 180-day period when there is a 19
preponderance of evidence that the transportation network company has 20
concealed or misled the driver regarding the alleged retaliatory 21
action. 22
(6) If a driver files a timely complaint with the department 23
alleging retaliation, the department shall investigate the complaint 24
and issue either a citation and notice of assessment or a 25
determination of compliance within 90 days after the date on which 26
the department received the complaint, unless the complaint is 27
otherwise resolved. The department may extend the period by providing 28
advance written notice to the driver and the transportation network 29
company setting forth good cause for an extension of the period, and 30
specifying the duration of the extension. 31
(7) The department may consider a complaint to be otherwise 32
resolved when the driver and the transportation network company reach 33
a mutual agreement to remedy any retaliatory action, or the driver 34
voluntarily and on the driver's own initiative withdraws the 35
complaint. 36
(8) If the department's investigation finds that the driver's 37
allegation of retaliation cannot be substantiated, the department 38
shall issue a determination of compliance to the driver and the 39
transportation network company detailing such finding.40
p. 40 HB 2406
(9) If the department's investigation finds that the 1
transportation network company retaliated against the driver, and the 2
complaint is not otherwise resolved, the department may, at its 3
discretion, notify the transportation network company that the 4
department intends to issue a citation and notice of assessment, and 5
may provide up to 30 days after the date of such notification for the 6
transportation network company to take corrective action to remedy 7
the retaliatory action. If the complaint is not otherwise resolved, 8
then the department shall issue a citation and notice of assessment. 9
The department's citation and notice of assessment may:10
(a) Order the transportation network company to make payable to 11
the driver earnings that the driver did not receive due to the 12
transportation network company's retaliatory action, including 13
interest of one percent per month on all earnings owed. The earnings 14
and interest owed will be calculated from the first date earnings 15
were owed to the driver; 16
(b) Order the transportation network company to restore the 17
contract of the driver, unless otherwise prohibited by law;18
(c) Order the transportation network company to cease using any 19
policy that counts the use of earned paid sick time as time off the 20
platform or an adverse action against the driver; 21
(d) For the first violation, order the transportation network 22
company to pay the department a civil penalty established in 23
subsection (15) of this section; and 24
(e) For a repeat violation, order the transportation network 25
company to pay the department up to double the civil penalty 26
established in subsection (15) of this section. 27
(10) The department shall send the citation and notice of 28
assessment or determination of compliance to both the transportation 29
network company and driver ((by service of process or )) using ((a)) 30
an electronic or nonelectronic method by which the ((mailing)) 31
citation and notice of assessment or determination of compliance can 32
be tracked or the delivery can be confirmed to their last known 33
addresses. A transportation network company may designate ((a mailing 34
address of record for service, and additionally may provide an email 35
address to which the department shall direct electronic courtesy 36
copies of mailed correspondence, if such email address is provided )) 37
an electronic or physical address of record for service. Before using 38
an electronic method for the first time under this subsection, the 39
department must provide the transportation network company and the 40
p. 41 HB 2406
driver the option to receive communication through a nonelectronic 1
method. 2
(11) During an investigation of the driver's retaliation 3
complaint, if the department discovers information suggesting alleged 4
violations by the transportation network company of the driver's 5
other rights under this chapter, and all applicable rules, the 6
department may investigate and take appropriate enforcement action 7
without requiring the driver to file a new or separate complaint. In 8
the event the department so expands an investigation, it shall 9
provide reasonable notice to the transportation network company that 10
it is doing so. If the department determines that the transportation 11
network company violated additional rights of the driver under this 12
chapter, and all applicable rules, the transportation network company 13
may be subject to additional enforcement actions for the violation of 14
such rights. If the department discovers information alleging the 15
transportation network company retaliated against or otherwise 16
violated rights of other drivers under this chapter, and all 17
applicable rules, the department may launch further investigation 18
under this chapter, and all applicable rules, without requiring 19
additional complaints to be filed. 20
(12) The department may prioritize retaliation investigations as 21
needed to allow for timely resolution of complaints.22
(13) Nothing in this section impedes the department's ability to 23
investigate under the authority prescribed in RCW 49.48.040.24
(14) Nothing in this section precludes a driver's right to pursue 25
private legal action, if any exists. 26
(15) If the department's investigation finds that a 27
transportation network company retaliated against a driver, pursuant 28
to the procedures outlined in this section, the department may order 29
the transportation network company to pay the department a civil 30
penalty. A civil penalty for a transportation network company's 31
retaliatory action will not be less than $1,000 or an amount equal to 32
10 percent of the total amount of unpaid earnings attributable to the 33
retaliatory action per claimant, whichever is greater. The maximum 34
civil penalty for a transportation network company's retaliatory 35
action shall be $20,000 per claimant for the first violation, and 36
$40,000 for each repeat violation. 37
(16) The department may, at any time, waive or reduce any civil 38
penalty assessed against a transportation network company under this 39
p. 42 HB 2406
section if the department determines that the transportation network 1
company has taken corrective action to remedy the retaliatory action.2
(17) The department will deposit civil penalties paid under this 3
section in the supplemental pension fund established under RCW 4
51.44.033. 5
(18) Collections of amounts owed for unpaid citations and notices 6
of assessment, as detailed in this section, will be handled pursuant 7
to the procedures outlined in RCW 49.48.086. 8
(19) A person, firm, or corporation aggrieved by a citation and 9
notice of assessment or a determination of compliance may, within 30 10
days after the date of such determination, submit a request for 11
reconsideration to the department setting forth the grounds for 12
seeking such reconsideration, or submit an appeal to the director 13
pursuant to the procedures outlined in subsection (22) of this 14
section. If the department receives a timely request for 15
reconsideration, the department shall either accept the request or 16
treat the request as a notice of appeal. 17
(20) If a request for reconsideration is accepted, the department 18
shall send notice of the request for reconsideration to the 19
transportation network company and the driver. The department shall 20
determine if there are any valid reasons to reverse or modify the 21
department's original decision to issue a citation and notice of 22
assessment or determination of compliance within 30 days of receipt 23
of such request. The department may extend this period by providing 24
advance written notice to the driver and transportation network 25
company setting forth good cause for an extension of the period, and 26
specifying the duration of the extension. After reviewing the 27
reconsideration, the department shall either: 28
(a) Notify the driver and the transportation network company that 29
the citation and notice of assessment or determination of compliance 30
is affirmed; or 31
(b) Notify the driver and the transportation network company that 32
the citation and notice of assessment or determination of compliance 33
has been reversed or modified. 34
(21) A request for reconsideration submitted to the department 35
shall stay the effectiveness of the citation and notice of assessment 36
or the determination of compliance pending the reconsideration 37
decision by the department. 38
(22)(a) Within 30 days after the date the department issues a 39
citation and notice of assessment or a determination of compliance, 40
p. 43 HB 2406
or within 30 days after the date the department issues its decision 1
on the request for reconsideration, a person, firm, or corporation 2
aggrieved by a citation and notice of assessment or a determination 3
of compliance may file with the director a notice of appeal.4
(b) A notice of appeal filed with the director under this section 5
shall stay the effectiveness of the citation and notice of assessment 6
or the determination of compliance pending final review of the appeal 7
by the director as provided for in chapter 34.05 RCW.8
(c) Upon receipt of a notice of appeal, the director shall assign 9
the hearing to an administrative law judge of the office of 10
administrative hearings to conduct the hearing and issue an initial 11
order. The hearing and review procedures shall be conducted in 12
accordance with chapter 34.05 RCW, and the standard of review by the 13
administrative law judge of an appealed citation and notice of 14
assessment or determination of compliance shall be de novo. Any party 15
who seeks to challenge an initial order shall file a petition for 16
administrative review with the director within 30 days after service 17
of the initial order. The director shall conduct administrative 18
review in accordance with chapter 34.05 RCW. 19
(23) If a request for reconsideration is not submitted to the 20
department within 30 days after the date of the original citation and 21
notice of assessment or determination of compliance, and a person, 22
firm, or corporation aggrieved by a citation and notice of assessment 23
or determination of compliance did not submit an appeal to the 24
director, then the citation and notice of assessment or determination 25
of compliance is final and binding, and not subject to further 26
appeal. 27
(24) The director shall issue all final orders after appeal of 28
the initial order. The final order of the director is subject to 29
judicial review in accordance with chapter 34.05 RCW.30
(25) The director's orders that are not appealed within the time 31
period specified in this section and chapter 34.05 RCW are final and 32
binding, and not subject to further appeal. 33
(26) Absent good cause, a transportation network company that 34
fails to allow adequate inspection of records in an investigation by 35
the department under this section within a reasonable time period may 36
not use such records in any appeal under such rules to challenge the 37
correctness of any determination by the department.38
p. 44 HB 2406
Sec. 23. RCW 49.46.370 and 2025 c 236 s 2 are each amended to 1
read as follows: 2
(1) Any employer that coerces an employee in furtherance of the 3
employer committing a violation of wage payment requirements as 4
defined in chapter 49.48 RCW, condition of labor requirements as 5
defined in chapter 49.12 RCW, or any violations under chapter 49.30 6
RCW, including rules issued by the department pursuant to chapter 7
49.30 RCW, is subject to a civil penalty under this section, in 8
addition to any other penalty that may be imposed by the department 9
against an employer for those violations. If an employer's violation 10
subjects the employer to a penalty under this section and a separate 11
penalty under RCW 49.46.100, the employer must be assessed the higher 12
amount of the two penalties. 13
(2) A worker who believes the worker was subject to coercion by 14
the worker's employer based on the worker's immigration status may 15
file a complaint with the department within 180 days of the alleged 16
coercive action. 17
(3)(a) The department must investigate a complaint of coercion by 18
an employer based on immigration status. 19
(b) Unless otherwise resolved, the department shall issue either 20
a notice of citation assessing a penalty or a closure letter no later 21
than 90 days after the date on which the department received the 22
complaint. 23
(c) The department may extend the time period by providing 24
advance written notice to the employee and the employer setting forth 25
good cause for an extension of the time period and specifying the 26
duration of the extension. 27
(d) The department shall send the citation assessing a penalty or 28
closure letter to both the employer and the employee by service of 29
process or using a method by which the ((mailing)) citation assessing 30
a penalty or closure letter can be tracked or the delivery can be 31
confirmed to their last known addresses. Before using an electronic 32
method for the first time under this section, the department must 33
provide the employer and the employee the option to receive 34
communication through a nonelectronic method.35
(e) If the department's investigation finds that the employee's 36
allegation cannot be substantiated, the department must issue a 37
closure letter to the employee and employer detailing such finding.38
p. 45 HB 2406
(f) If the department determines the employer violated this 1
section, the department must assess a civil penalty for each coercive 2
act as follows: 3
(i) For the first violation, a civil penalty not to exceed 4
$1,000; 5
(ii) For the second violation, a civil penalty not to exceed 6
$5,000; and 7
(iii) For any subsequent violation, a civil penalty not to exceed 8
$10,000. 9
(4) Each act of coercion against each affected employee 10
constitutes a separate violation of chapter 236, Laws of 2025.11
(5) The department shall deposit all civil penalties paid under 12
this section in the supplemental pension fund established under RCW 13
51.44.033. 14
(6)(a) The penalties payable pursuant to this section shall be 15
adjusted for inflation every three years, beginning July 1, 2028, 16
based upon changes in the consumer price index during that time 17
period. 18
(b) For purposes of this subsection, "consumer price index" 19
means, for any calendar year, that year's average consumer price 20
index for the Seattle, Washington area for urban wage earners and 21
clerical workers, all items, compiled by the bureau of labor 22
statistics, United States department of labor. 23
(7) Any personal information about the employee or the employee's 24
family members, including names, in a complaint or investigation is 25
confidential and may be disclosed only to the employer. Any personal 26
information may not be disclosed to any other person or entity 27
without the written permission of the employee. 28
(8) If, during an investigation of any other complaint, the 29
department discovers information that suggests an employer has 30
coerced an employee based on immigration status, the department may 31
investigate and take appropriate enforcement action without requiring 32
the employee to file a new or separate complaint. 33
(9)(a) A person, firm, or corporation aggrieved by a citation 34
assessing a civil penalty issued by the department under this section 35
may appeal the citation to the director by filing a notice of appeal 36
with the director within 30 days of the department's issuance of the 37
citation. A citation assessing a civil penalty not appealed within 30 38
days is final and binding, and not subject to further appeal.39
p. 46 HB 2406
(b) A notice of appeal filed with the director under this section 1
stays the effectiveness of the citation assessing a civil penalty 2
pending final review of the appeal by the director as provided for in 3
chapter 34.05 RCW. 4
(c) Upon receipt of a notice of appeal, the director shall assign 5
the hearing to an administrative law judge of the office of 6
administrative hearings to conduct the hearing and issue an initial 7
order. The hearing and review procedures must be conducted in 8
accordance with chapter 34.05 RCW, and the standard of review by the 9
administrative law judge of an appealed citation assessing a civil 10
penalty shall be de novo. Any party who seeks to challenge an initial 11
order shall file a petition for administrative review with the 12
director within 30 days after service of the initial order. The 13
director will conduct administrative review in accordance with 14
chapter 34.05 RCW. 15
(d) The director shall issue all final orders after appeal of the 16
initial order. The final order of the director is subject to judicial 17
review in accordance with chapter 34.05 RCW. 18
(e) Orders that are not appealed within the period specified in 19
this section and chapter 34.05 RCW are final and binding, and not 20
subject to further appeal. 21
(f) An employer who fails to allow adequate inspection of records 22
in an investigation by the department under this section within a 23
reasonable time period may not use such records in any appeal under 24
such rules to challenge the correctness of any determination by the 25
department of penalties assessed. 26
(10) The collections procedures under RCW 49.48.086 apply to this 27
section. 28
(11) For the purposes of this section, "department" means the 29
department of labor and industries. 30
Sec. 24. RCW 49.48.060 and 2010 c 42 s 5 and 2010 c 8 s 12050 31
are each reenacted and amended to read as follows:32
(1) If upon investigation by the director, after taking 33
assignments of any wage claim under RCW 49.48.040 or after receiving 34
a wage complaint as defined in RCW 49.48.082 from an employee, it 35
appears to the director that the employer is representing to his or 36
her employees that he or she is able to pay wages for their services 37
and that the employees are not being paid for their services, the 38
director may require the employer to give a bond in such sum as the 39
p. 47 HB 2406
director deems reasonable and adequate in the circumstances, with 1
sufficient surety, conditioned that the employer will for a definite 2
future period not exceeding six months conduct his or her business 3
and pay his or her employees in accordance with the laws of the state 4
of Washington. 5
(2) If within ((ten)) 10 days after demand for such bond the 6
employer fails to provide the same, the director may commence a suit 7
against the employer in the superior court of appropriate 8
jurisdiction to compel him or her to furnish such bond or cease doing 9
business until he or she has done so. The employer shall have the 10
burden of proving the amount thereof to be excessive.11
(3) If the court finds that there is just cause for requiring 12
such bond and that the same is reasonable, necessary, or appropriate 13
to secure the prompt payment of the wages of the employees of such 14
employer and his or her compliance with one or more wage payment 15
requirements as defined in RCW 49.48.082, the court shall enjoin such 16
employer from doing business in this state until the requirement is 17
met, or shall make other, and may make further, orders appropriate to 18
compel compliance with the requirement. 19
(4) Upon being informed of a wage claim against an employer or 20
former employer, the director shall, if such claim appears to be 21
just, immediately notify the employer or former employer, of such 22
claim ((by mail)) using an electronic or nonelectronic method. Before 23
using an electronic method for the first time under this subsection, 24
the department must provide the employer or the former employer the 25
option to receive communication through a nonelectronic method . If 26
the employer or former employer fails to pay the claim or make 27
satisfactory explanation to the director of his or her failure to do 28
so, within ((thirty)) 30 days thereafter, the employer or former 29
employer shall be liable to a penalty of ((ten)) 10 percent of that 30
portion of the claim found to be justly due. The director shall have 31
a cause of action against the employer or former employer for the 32
recovery of such penalty, and the same may be included in any 33
subsequent action by the director on said wage claim, or may be 34
exercised separately after adjustment of such wage claim without 35
court action. This subsection does not apply to wage complaints made 36
under RCW 49.48.083. 37
Sec. 25. RCW 49.48.083 and 2023 c 243 s 1 are each amended to 38
read as follows: 39
p. 48 HB 2406
(1) If an employee files a wage complaint with the department, 1
the department shall investigate the wage complaint. Unless otherwise 2
resolved, the department shall issue either a citation and notice of 3
assessment or a determination of compliance no later than 60 days 4
after the date on which the department received the wage complaint. 5
The department may extend the time period by providing advance 6
((written)) notice to the employee and the employer setting forth 7
good cause for an extension of the time period and specifying the 8
duration of the extension. The department may not investigate any 9
alleged violation of a wage payment requirement that occurred more 10
than three years before the date that the employee filed the wage 11
complaint. The department shall send the citation and notice of 12
assessment or the determination of compliance to both the employer 13
and the employee ((by service of process or )) using ((a)) an 14
electronic or nonelectronic method by which the ((mailing)) citation 15
and notice of assessment or the determination of compliance can be 16
tracked or the delivery can be confirmed to their last known 17
addresses. Before using an electronic method for the first time under 18
this subsection, the department must provide the employer and the 19
employee the option to receive communication through a nonelectronic 20
method.21
(2) If the department determines that an employer has violated a 22
wage payment requirement and issues to the employer a citation and 23
notice of assessment, the department may order the employer to pay 24
employees all wages owed, including interest of one percent per month 25
on all wages owed, to the employee. The wages and interest owed must 26
be calculated from the first date wages were owed to the employee, 27
except that the department may not order the employer to pay any 28
wages and interest that were owed more than three years before the 29
date the wage complaint was filed with the department.30
(3) If the department determines that the violation of the wage 31
payment requirement was a willful violation, the department also may 32
order the employer to pay the department a civil penalty as specified 33
in (a) of this subsection. 34
(a) A civil penalty for a willful violation of a wage payment 35
requirement shall be not less than ((one thousand dollars)) $1,000 or 36
an amount equal to ((ten)) 10 percent of the total amount of unpaid 37
wages, whichever is greater. The maximum civil penalty for a willful 38
violation of a wage payment requirement shall be ((twenty thousand 39
dollars)) $20,000. 40
p. 49 HB 2406
(b) The department may not assess a civil penalty if the employer 1
reasonably relied on: (i) A rule related to any wage payment 2
requirement; (ii) a written order, ruling, approval, opinion, advice, 3
determination, or interpretation of the director; or (iii) an 4
interpretive or administrative policy issued by the department and 5
filed with the office of the code reviser. In accordance with the 6
department's retention schedule obligations under chapter 40.14 RCW, 7
the department shall maintain a complete and accurate record of all 8
written orders, rulings, approvals, opinions, advice, determinations, 9
and interpretations for purposes of determining whether an employer 10
is immune from civil penalties under (b)(ii) of this subsection.11
(c) The department shall waive any civil penalty assessed against 12
an employer under this section if the employer is not a repeat 13
willful violator, and the director determines that the employer has 14
provided payment to the employee of all wages that the department 15
determined that the employer owed to the employee, including 16
interest, within ((ten)) 10 business days of the employer's receipt 17
of the citation and notice of assessment from the department.18
(d) The department may waive or reduce at any time a civil 19
penalty assessed under this section if the director determines that 20
the employer paid all wages and interest owed to an employee.21
(e) The department shall deposit civil penalties paid under this 22
section in the supplemental pension fund established under RCW 23
51.44.033. 24
(4) Upon payment by an employer, and acceptance by an employee, 25
of all wages and interest assessed by the department in a citation 26
and notice of assessment issued to the employer, the fact of such 27
payment by the employer, and of such acceptance by the employee, 28
shall: (a) Constitute a full and complete satisfaction by the 29
employer of all specific wage payment requirements addressed in the 30
citation and notice of assessment; and (b) bar the employee from 31
initiating or pursuing any court action or other judicial or 32
administrative proceeding based on the specific wage payment 33
requirements addressed in the citation and notice of assessment. The 34
citation and notice of assessment shall include a notification and 35
summary of the specific requirements of this subsection.36
(5) The applicable statute of limitations for civil actions is 37
tolled during the department's investigation of an employee's wage 38
complaint against an employer. For the purposes of this subsection, 39
the department's investigation begins on the date the employee files 40
p. 50 HB 2406
the wage complaint with the department and ends when: (a) The wage 1
complaint is finally determined through a final and binding citation 2
and notice of assessment or determination of compliance; or (b) the 3
department notifies the employer and the employee in writing that the 4
wage complaint has been otherwise resolved or that the employee has 5
elected to terminate the department's administrative action under RCW 6
49.48.085. 7
(6) For all wage complaints filed on or after January 1, 2024, if 8
the department offers the employer the option to resolve a wage 9
complaint without a citation and notice of assessment, and the 10
employer chooses to accept the offer, any settlement must include 11
interest of one percent per month on all amounts owed. The employee 12
may request a waiver or reduction of interest as part of the 13
settlement process. 14
Sec. 26. RCW 49.60.515 and 2025 c 47 s 1 are each amended to 15
read as follows: 16
(1) Every hotel, motel, retail, or security guard entity, or 17
property services contractor, who employs an isolated employee, must:18
(a) Adopt a sexual harassment policy; 19
(b) Provide mandatory training to the employer's managers, 20
supervisors, and isolated employees to: 21
(i) Prevent sexual assault and sexual harassment in the 22
workplace; 23
(ii) Prevent sexual discrimination in the workplace;24
(iii) Educate the employer's workforce regarding protection for 25
isolated employees who report violations of a state or federal law, 26
rule, or regulation; and 27
(iv) Inform isolated employees on how to use panic buttons, and 28
inform managers and supervisors on the responsibility to respond to 29
the use of panic buttons; 30
(c) Provide a list of resources for the employer's isolated 31
employees to utilize. At a minimum, the resources must include 32
contact information of the equal employment opportunity commission, 33
the Washington state human rights commission, and local advocacy 34
groups focused on preventing sexual harassment and sexual assault;35
(d) Provide a panic button to each isolated employee. An employer 36
must maintain a record of the purchase and utilization of panic 37
buttons provided to its isolated employees under this section. 38
Records must be provided to the department upon request. The 39
p. 51 HB 2406
department must publish advice and guidance for employers with fifty 1
or fewer employees relating to this subsection (1)(d). This 2
subsection (1)(d) does not apply to contracted security guard 3
companies licensed under chapter 18.170 RCW; and 4
(e) Document completion of the mandatory training required by 5
this subsection and provide the documentation to the department upon 6
request. 7
(2)(a) A property services contractor shall submit the following 8
to the department on an annual basis on a form or in a manner 9
determined by the department: 10
(i) The date of adoption of the sexual harassment policy required 11
in subsection (1)(a) of this section; 12
(ii) The number of managers, supervisors, and isolated employees 13
trained as required by subsection (1)(b) of this section; and14
(iii) The physical address of the work location or locations at 15
which janitorial services are provided by workers of the property 16
services contractor, and for each location: (A) The total number of 17
workers or contractors of the property services contractor who 18
perform janitorial services; and (B) the total hours worked.19
(b) The department must make aggregate data submitted as required 20
in this subsection (2) available upon request. 21
(3)(a) The department must investigate if a complaint is filed 22
with the department alleging a violation of this section or if the 23
department has reason to believe that an employer has committed a 24
violation of this section. 25
(b) Except when a violation is otherwise resolved, the department 26
must issue: (i) A citation assessing a civil penalty under (c) of 27
this subsection if it finds a violation has occurred; or (ii) a 28
closure letter detailing any findings if it finds that a violation 29
cannot be substantiated. The notice of a citation or closure letter 30
must be sent to the employer by service of process or using ((a)) an 31
electronic or nonelectronic method by which the ((mailing)) citation 32
or closure letter can be tracked or the delivery can be confirmed to 33
the last known address. Before using an electronic method for the 34
first time under this section, the department must provide the 35
employer and the employee the option to receive communication through 36
a nonelectronic method.37
(c) If the department finds a violation of this section, the 38
department may order the employer to pay the department a civil 39
penalty of $1,000 for each willful violation. For a repeat willful 40
p. 52 HB 2406
violator, the citation assessing a civil penalty must be at least 1
$2,000 for each repeat willful violation, but no greater than $10,000 2
for each repeat willful violation. The department may, at any time, 3
waive or reduce a civil penalty assessed under this section if the 4
department determines that the employer has taken corrective action 5
to resolve the violation. Penalties collected under this section must 6
be deposited into the supplemental pension fund established under RCW 7
51.44.033. 8
(d) An employer who fails to comply with the department's 9
investigation of records within a reasonable time period may not use 10
such records in any appeal to challenge the correctness of any 11
determination by the department. 12
(4) For the purposes of this section: 13
(a) "Department" means the department of labor and industries.14
(b) "Isolated employee" means an employee who:15
(i)(A) Performs work in an area where two or more coworkers, 16
supervisors, or a combination thereof are unable to immediately 17
respond to an emergency without being summoned by the employee; or 18
(B) spends at least 50 percent of her or his working hours without a 19
supervisor or another coworker present; and 20
(ii) Is employed by an employer as a janitor, security guard, 21
hotel or motel housekeeper, or room service attendant.22
(c) "Employer" means any person, association, partnership, 23
property services contractor, or public or private corporation, 24
whether for-profit or not, who employs one or more persons.25
(d) "Panic button" means an emergency contact device carried by 26
an isolated employee by which the isolated employee may summon 27
immediate on-scene assistance from another worker, a security guard, 28
or a representative of the employer. 29
A panic button must: 30
(i) Be designed to be carried by the isolated employee;31
(ii) Be simple to activate without delays caused by entering 32
passwords or waiting for the system to turn on; 33
(iii) Provide an effective signal for the circumstances when 34
activated; and 35
(iv) Be able to summon immediate assistance and allow responders 36
to accurately identify the isolated employee's location.37
(e) "Property services contractor" means any person or entity 38
that employs workers: (i) To perform labor for another person to 39
provide commercial janitorial services; or (ii) on behalf of an 40
p. 53 HB 2406
employer to provide commercial janitorial services. "Property 1
services contractor" does not mean the employment security department 2
or individuals who perform labor under an agreement for exchanging 3
their own labor or services with each other, provided the work is 4
performed on land owned or leased by the individuals.5
(f) "Repeat willful violator" means any employer that has been 6
the subject of a final and binding citation for a willful violation 7
of one or more requirements under this section and all applicable 8
rules, within three years of the date of issuance of the most recent 9
citation for a willful violation of one or more requirements.10
(g) "Security guard" means an individual who is principally 11
employed as, or typically referred to as, a security officer or 12
guard, regardless of whether the individual is employed by a private 13
security company or a single employer or whether the individual is 14
required to be licensed under chapter 18.170 RCW. 15
(h) "Willful" means a knowing and intentional action that is 16
neither accidental nor the result of a bona fide dispute.17
(5) The department must adopt rules for purposes of implementing 18
and enforcing this section including, but not limited to, rules 19
concerning the collection of civil penalties and establishing the 20
processes for appeals of citations issued under this section in 21
accordance with chapter 34.05 RCW. 22
Sec. 27. RCW 49.84.045 and 2023 c 306 s 9 are each amended to 23
read as follows: 24
(1)(a) An employee may file a complaint with the department 25
alleging a violation under this chapter or applicable rules, except 26
for violations and enforcement of RCW 49.84.032 and 49.84.040. The 27
department must investigate the complaint. 28
(b) The department may not investigate any such alleged violation 29
of rights that occurred more than three years before the date that 30
the employee filed the complaint. 31
(c) If an employee files a timely complaint with the department, 32
the department must investigate the complaint and issue either a 33
citation and notice of assessment or a determination of compliance 34
within 90 days after the date on which the department received the 35
complaint, unless the complaint is otherwise resolved. The department 36
may extend the period by providing advance ((written)) notice to the 37
employee and the employer setting forth good cause for an extension 38
of the period and specifying the duration of the extension.39
p. 54 HB 2406
(d) The department must send the citation and notice of 1
assessment or the determination of compliance to both the employer 2
and the employee by service of process or using ((a)) an electronic 3
or nonelectronic method by which the ((mailing)) citation and notice 4
of assessment or the determination of compliance can be tracked or 5
the delivery can be confirmed to their last known addresses. Before 6
using an electronic method for the first time under this subsection, 7
the department must provide the employer and the employee the option 8
to receive communication through a nonelectronic method.9
(2) If the department's investigation finds that the employee's 10
allegation cannot be substantiated, the department must issue a 11
determination of compliance to the employee and the employer 12
detailing such finding. 13
(3) The director may initiate an investigation without an 14
employee's complaint to ensure compliance with this chapter.15
(4) The department may request an employer perform a self-audit 16
of any records relating to chapter 306, Laws of 2023, which must be 17
provided within a reasonable time. Reasonable timelines will be 18
specified in the self-audit request. The department must determine 19
reasonable time based on the number of affected employees and the 20
period of time covered by the self-audit. The records examined by the 21
employer in order to perform the self-audit must be made available to 22
the department upon request. 23
(5) Upon the department's request, an employer must notify 24
affected employees in writing that the department is conducting an 25
investigation. The department may require the employer to include a 26
general description of each investigation as part of the 27
notification, including the allegations and whether the notified 28
employee may be affected. The employer may consult with the 29
department to provide the information for the description of the 30
notification or investigation. 31
(6) If the department determines that the employer has violated a 32
requirement of this chapter or any rule adopted under this chapter, 33
the department also may order the employer to pay the department a 34
civil penalty of not less than $1,000. The first violation may not 35
exceed $1,000. The department may, at any time, waive or reduce any 36
civil penalty assessed against an employer under this section if the 37
department determines that the employer has taken corrective action 38
to remedy a violation. The department must adopt rules creating a 39
schedule to enhance penalties, not to exceed $10,000 per violation, 40
p. 55 HB 2406
based on repeat violations by the employer. Civil penalties must be 1
collected by the department and deposited into the supplemental 2
pension fund established under RCW 51.44.033. 3
(7) Except as provided under subsection (1) of this section, an 4
employer who is found to have violated a requirement of this chapter 5
and the rules adopted under this chapter resulting in a rest or meal 6
period violation, must pay the employee one additional hour of pay at 7
the employee's regular rate of pay for each day there is a violation.8
(8) Upon receiving a complaint, the department may request or 9
subpoena the records of the warehouse distribution center.10
(9) For enforcement actions under this section, if any person 11
fails to pay an assessment under this chapter, or under any rule 12
under this chapter, after it has become a final and unappealable 13
order, or after the court has entered final judgment in favor of the 14
agency, the director may initiate collection procedures in accordance 15
with the collection procedures under RCW 49.48.086.16
(10) If the department finds that a quota violates chapter 306, 17
Laws of 2023, the department may order the employer to review and 18
provide a corrected written quota to the affected employee or 19
employees within 15 calendar days and place a letter in the 20
employee's personnel file to acknowledge the correction. If the 21
employer fails to do so, the employer may be subject to the penalties 22
under subsection (6) of this section and associated rules.23
(11) In addition to any enforcement authority provided in this 24
chapter or applicable rules, the department may enforce any violation 25
under this chapter or applicable rules, except for violations and 26
enforcement of RCW 49.84.032, by filing an action in the superior 27
court for the county in which the violation is alleged to have 28
occurred. If the department prevails, it is entitled to reasonable 29
attorneys' fees and costs, in the amount to be determined by the 30
court. 31
Sec. 28. RCW 51.04.082 and 2011 c 290 s 2 are each amended to 32
read as follows: 33
Any notice or order required by this title to be ((mailed)) sent 34
to any employer may be served in the manner prescribed by law for 35
personal service of summons and complaint in the commencement of 36
actions in the superior courts of the state, but if the notice or 37
order is mailed, it shall be addressed to the address of the employer 38
as shown by the records of the department, or, if no such address is 39
p. 56 HB 2406
shown, to such address as the department is able to ascertain by 1
reasonable effort. ((If requested by the employer, )) The department 2
may send any notice or order ((may be sent)) to an employer by secure 3
electronic means ((except orders communicating the closure of a 4
claim)). Before using an electronic method for the first time for any 5
notice or order under this title, the department must provide the 6
employer the option to receive communication through a nonelectronic 7
method. Correspondence and notices sent electronically are considered 8
received on the date sent by the department. Failure of the employer 9
to receive such notice or order whether served or mailed shall not 10
release the employer from any tax or any increases or penalties 11
thereon. 12
Sec. 29. RCW 51.12.120 and 2023 c 88 s 11 are each amended to 13
read as follows: 14
(1) If a worker, while working outside the territorial limits of 15
this state, suffers an injury on account of which he or she, or his 16
or her beneficiaries, would have been entitled to compensation under 17
this title had the injury occurred within this state, the worker, or 18
his or her beneficiaries, shall be entitled to compensation under 19
this title if at the time of the injury: 20
(a) His or her employment is principally localized in this state; 21
or 22
(b) He or she is working under a contract of hire made in this 23
state for employment not principally localized in any state; or24
(c) He or she is working under a contract of hire made in this 25
state for employment principally localized in another state whose 26
workers' compensation law is not applicable to his or her employer; 27
or 28
(d) He or she is working under a contract of hire made in this 29
state for employment outside the United States and Canada.30
(2) The payment or award of compensation or other recoveries, 31
including settlement proceeds, under the workers' compensation law of 32
another state, territory, province, or foreign nation to a worker or 33
his or her beneficiaries otherwise entitled on account of such injury 34
to compensation under this title shall not be a bar to a claim for 35
compensation under this title if that claim under this title is 36
timely filed. If compensation is paid or awarded under this title, 37
the total amount of compensation or other recoveries, including 38
settlement proceeds, paid or awarded the worker or beneficiary under 39
p. 57 HB 2406
such other workers' compensation law shall be credited against the 1
compensation due the worker or beneficiary under this title.2
(3)(a) An employer not domiciled in this state who is employing 3
workers in this state in work for which the employer must be 4
registered under chapter 18.27 RCW, licensed under chapter 18.106 5
RCW, licensed under chapter 19.28 RCW, or prequalified under RCW 6
47.28.070, must secure the payment of compensation under this title 7
by: 8
(i) Insuring the employer's workers' compensation obligation 9
under this title with the department; 10
(ii) Being qualified as a self-insurer under this title; or11
(iii) For employers domiciled in a state or province of Canada 12
subject to an agreement entered into under subsection (7) of this 13
section, as permitted by the agreement, filing with the department a 14
certificate of coverage issued by the agency that administers the 15
workers' compensation law in the employer's state or province of 16
domicile certifying that the employer has secured the payment of 17
compensation under the other state's or province's workers' 18
compensation law. 19
(b) The department shall adopt rules to implement this 20
subsection. 21
(4) If a worker or beneficiary is entitled to compensation under 22
this title by reason of an injury sustained in this state while in 23
the employ of an employer who is domiciled in another state or 24
province of Canada and the employer: 25
(a) Is not subject to subsection (3) of this section and has 26
neither opened an account with the department nor qualified as a 27
self-insurer under this title, the employer or his or her insurance 28
carrier shall file with the director a certificate issued by the 29
agency that administers the workers' compensation law in the state of 30
the employer's domicile, certifying that the employer has secured the 31
payment of compensation under the workers' compensation law of the 32
other state and that with respect to the injury the worker or 33
beneficiary is entitled to the benefits provided under the other 34
state's law. 35
(b) Has filed a certificate under subsection (3)(a)(iii) of this 36
section or (a) of this subsection (4): 37
(i) The filing of the certificate constitutes appointment by the 38
employer or his or her insurance carrier of the director as its agent 39
p. 58 HB 2406
for acceptance of the service of process in any proceeding brought by 1
any claimant to enforce rights under this title; 2
(ii) The director shall send to such employer or his or her 3
insurance carrier, ((by registered or certified mail )) using an 4
electronic or nonelectronic method by which the notice can be tracked 5
or the delivery can be confirmed to the address shown on such 6
certificate, a true copy of any notice of claim or other process 7
served on the director by the claimant in any proceeding brought to 8
enforce rights under this title . Before using an electronic method 9
for the first time under this subsection, the department must provide 10
the employer or his or her insurance carrier the option to receive 11
communication through a nonelectronic method; 12
(iii) If the employer is a self-insurer under the workers' 13
compensation law of the other state or province of Canada, the 14
employer shall, upon submission of evidence or security, satisfactory 15
to the director, of his or her ability to meet his or her liability 16
to the claimant under this title, be deemed to be a qualified self-17
insurer under this title; and 18
(iv) If the employer's liability under the workers' compensation 19
law of the other state or province of Canada is insured:20
(A) The employer's carrier, as to such claimant only, shall be 21
deemed to be subject to this title. However, unless the insurer's 22
contract with the employer requires the insurer to pay an amount 23
equivalent to the compensation benefits provided by this title, the 24
insurer's liability for compensation shall not exceed the insurer's 25
liability under the workers' compensation law of the other state or 26
province; and 27
(B) If the total amount for which the employer's insurer is 28
liable under (b)(iv)(A) of this subsection is less than the total of 29
the compensation to which the claimant is entitled under this title, 30
the director may require the employer to file security satisfactory 31
to the director to secure the payment of compensation under this 32
title. 33
(c) If subject to subsection (3) of this section, has not 34
complied with subsection (3) of this section or, if not subject to 35
subsection (3) of this section, has neither qualified as a self-36
insurer nor secured insurance coverage under the workers' 37
compensation law of another state or province of Canada, the claimant 38
shall be paid compensation by the department and the employer shall 39
p. 59 HB 2406
have the same rights and obligations, and is subject to the same 1
penalties, as other employers subject to this title.2
(5) As used in this section: 3
(a) A person's employment is principally localized in this or 4
another state when: (i) His or her employer has a place of business 5
in this or the other state and he or she regularly works at or from 6
the place of business; or (ii) if (a)(i) of this subsection is not 7
applicable, he or she is domiciled in and spends a substantial part 8
of his or her working time in the service of his or her employer in 9
this or the other state; 10
(b) "Workers' compensation law" includes "occupational disease 11
law" for the purposes of this section. 12
(6) A worker whose duties require him or her to travel regularly 13
in the service of his or her employer in this and one or more other 14
states may agree in writing with his or her employer that his or her 15
employment is principally localized in this or another state, and, 16
unless the other state refuses jurisdiction, the agreement shall 17
govern as to any injury occurring after the effective date of the 18
agreement. 19
(7) The director is authorized to enter into agreements with the 20
appropriate agencies of other states and provinces of Canada that 21
administer their workers' compensation law with respect to conflicts 22
of jurisdiction and the assumption of jurisdiction in cases where the 23
contract of employment arises in one state or province and the injury 24
occurs in another. If the other state's or province's law requires 25
Washington employers to secure the payment of compensation under the 26
other state's or province's workers' compensation laws for work 27
performed in that state or province, then employers domiciled in that 28
state or province must purchase compensation covering their workers 29
engaged in that work in this state under this state's industrial 30
insurance law. When an agreement under this subsection has been 31
executed and adopted as a rule of the department under chapter 34.05 32
RCW, it binds all employers and workers subject to this title and the 33
jurisdiction of this title is governed by this rule.34
(8) Washington employers who are not self-insured under chapter 35
51.14 RCW shall obtain workers' compensation coverage from the state 36
fund for temporary and incidental work performed on jobs or at 37
jobsites in another state by their Washington workers. The department 38
is authorized to adopt rules governing premium liability and 39
p. 60 HB 2406
reporting requirements for hours of work in excess of temporary and 1
incidental as defined in this chapter. 2
(9) "Temporary and incidental" means work performed by Washington 3
employers on jobs or at jobsites in another state for 30 or fewer 4
consecutive or nonconsecutive full or partial days within a calendar 5
year. Temporary and incidental days are considered on a per state 6
basis. 7
(10) By December 1, 2011, the department shall report to the 8
workers' compensation advisory committee on the effect of this 9
section on the revenue and costs to the state fund.10
Sec. 30. RCW 51.14.060 and 2010 c 213 s 2 are each amended to 11
read as follows: 12
(1) The director may, in cases of default upon any obligation 13
under this title by the self-insurer, after ((ten)) 10 days' notice 14
((by certified mail )) sent using an electronic or nonelectronic 15
method by which the notice can be tracked or the delivery can be 16
confirmed to the defaulting self-insurer of the intention to do so, 17
bring suit upon such bond or collect the interest and principal of 18
any of the securities as they may become due or sell the securities 19
or any of them as may be required or apply the money deposited, all 20
in order to pay compensation and discharge the obligations of the 21
defaulting self-insurer under this title. Before using an electronic 22
method for the first time under this subsection, the department must 23
provide the self-insurer the option to receive communication through 24
a nonelectronic method.25
(2) The director shall be authorized to fulfill the defaulting 26
self-insured employer's obligations under this title from the 27
defaulting self-insured employer's deposit or from other funds 28
provided under this title for the satisfaction of claims against the 29
defaulting self-insured employer. The defaulting self-insured 30
employer is liable to and shall reimburse the director for the 31
amounts necessary to fulfill the obligations of the defaulting self-32
insured employer that are in excess of the amounts received by the 33
director from any bond filed, or securities or money deposited, by 34
the defaulting self-insured employer pursuant to this chapter ((51.14 35
RCW)). The amounts to be reimbursed shall include all amounts paid or 36
payable as compensation under this title together with administrative 37
costs, including attorneys' fees, and shall be considered taxes due 38
the state of Washington. 39
p. 61 HB 2406
(3) The department shall transfer the balance of any defaulted 1
self-insured employer's deposit as required by RCW 51.14.020 into the 2
insolvency trust fund when the following have occurred:3
(a) All claims against the defaulted self-insured employer are 4
closed; and 5
(b) The self-insured employer has been in default for ((ten)) 10 6
years. 7
Sec. 31. RCW 51.14.090 and 1996 c 58 s 1 are each amended to 8
read as follows: 9
(1) Upon the petition of any employee or union or association 10
having a substantial number of employees in the employ of the self-11
insurer the director or the director's designee may, in the director 12
or designee's sole discretion, hold a hearing to determine whether or 13
not there are grounds for the withdrawal of certification of a self-14
insurer or for corrective action by the department.15
(2) The director shall serve upon the self-insurer and upon any 16
employee or union or association having a substantial number of 17
employees in the employ of said self-insurer, personally or by 18
((certified)) mail using an electronic or nonelectronic method by 19
which the notice can be tracked or the delivery can be confirmed , a 20
notice of intention to withdraw, or not to withdraw, certification of 21
the self-insurer, which notice shall describe the nature and location 22
or locations of the plants or operations involved; and the specific 23
nature of the reasons for the decision. Similar notice shall be 24
provided for decisions regarding corrective actions. The corrective 25
action notice shall also include a directive to the self-insurer 26
specifying the program deficiencies to be eliminated.27
(3) If the decision is to withdraw certification, it shall 28
include: The period of time within which the ground or grounds 29
therefor existed or arose; and the date, not less than ((ninety)) 90 30
days after the self-insurer's receipt of the notice, when the 31
certification will be withdrawn. Before using an electronic method 32
for the first time under this subsection, the department must provide 33
the self-insurer, union, or association the option to receive 34
communication through a nonelectronic method.35
(4) An appeal of any action taken by the director under this 36
section may be taken by the self-insurer, or by any employee or union 37
or association having a substantial number of employees in the employ 38
of the self-insurer. Proceedings on the appeal shall be as prescribed 39
p. 62 HB 2406
in this title. Appeal by a self-insurer of notice of intention to 1
withdraw certification or to take corrective action shall not act as 2
a stay of the withdrawal or corrective action, unless the board or 3
court, for good cause shown, orders otherwise. 4
(5) The director may adopt rules to carry out the purposes of 5
this section. 6
Sec. 32. RCW 51.24.060 and 2011 c 290 s 4 are each amended to 7
read as follows: 8
(1) If the injured worker or beneficiary elects to seek damages 9
from the third person, any recovery made shall be distributed as 10
follows: 11
(a) The costs and reasonable attorneys' fees shall be paid 12
proportionately by the injured worker or beneficiary and the 13
department and/or self-insurer: PROVIDED, That the department and/or 14
self-insurer may require court approval of costs and attorneys' fees 15
or may petition a court for determination of the reasonableness of 16
costs and attorneys' fees; 17
(b) The injured worker or beneficiary shall be paid ((twenty-18
five)) 25 percent of the balance of the award: PROVIDED, That in the 19
event of a compromise and settlement by the parties, the injured 20
worker or beneficiary may agree to a sum less than ((twenty-five)) 25 21
percent; 22
(c) The department and/or self-insurer shall be paid the balance 23
of the recovery made, but only to the extent necessary to reimburse 24
the department and/or self-insurer for benefits paid;25
(i) The department and/or self-insurer shall bear its 26
proportionate share of the costs and reasonable attorneys' fees 27
incurred by the worker or beneficiary to the extent of the benefits 28
paid under this title: PROVIDED, That the department's and/or self-29
insurer's proportionate share shall not exceed ((one hundred )) 100 30
percent of the costs and reasonable attorneys' fees;31
(ii) The department's and/or self-insurer's proportionate share 32
of the costs and reasonable attorneys' fees shall be determined by 33
dividing the gross recovery amount into the benefits paid amount and 34
multiplying this percentage times the costs and reasonable attorneys' 35
fees incurred by the worker or beneficiary; 36
(iii) The department's and/or self-insurer's reimbursement share 37
shall be determined by subtracting their proportionate share of the 38
costs and reasonable attorneys' fees from the benefits paid amount;39
p. 63 HB 2406
(d) Any remaining balance shall be paid to the injured worker or 1
beneficiary; and 2
(e) Thereafter no payment shall be made to or on behalf of a 3
worker or beneficiary by the department and/or self-insurer for such 4
injury until the amount of any further compensation and benefits 5
shall equal any such remaining balance minus the department's and/or 6
self-insurer's proportionate share of the costs and reasonable 7
attorneys' fees in regards to the remaining balance. This 8
proportionate share shall be determined by dividing the gross 9
recovery amount into the remaining balance amount and multiplying 10
this percentage times the costs and reasonable attorneys' fees 11
incurred by the worker or beneficiary. Thereafter, such benefits 12
shall be paid by the department and/or self-insurer to or on behalf 13
of the worker or beneficiary as though no recovery had been made from 14
a third person. 15
(2) The recovery made shall be subject to a lien by the 16
department and/or self-insurer for its share under this section.17
(3) The department or self-insurer has sole discretion to 18
compromise the amount of its lien. In deciding whether or to what 19
extent to compromise its lien, the department or self-insurer shall 20
consider at least the following: 21
(a) The likelihood of collection of the award or settlement as 22
may be affected by insurance coverage, solvency, or other factors 23
relating to the third person; 24
(b) Factual and legal issues of liability as between the injured 25
worker or beneficiary and the third person. Such issues include , but 26
are not limited to , possible contributory negligence and novel 27
theories of liability; and 28
(c) Problems of proof faced in obtaining the award or settlement.29
(4) In an action under this section, the self-insurer may act on 30
behalf and for the benefit of the department to the extent of any 31
compensation and benefits paid or payable from state funds.32
(5) It shall be the duty of the person to whom any recovery is 33
paid before distribution under this section to advise the department 34
or self-insurer of the fact and amount of such recovery, the costs 35
and reasonable attorneys' fees associated with the recovery, and to 36
distribute the recovery in compliance with this section.37
(6) The distribution of any recovery made by award or settlement 38
of the third party action shall be confirmed by department order ((, 39
served by a method for which receipt can be confirmed or tracked, and 40
p. 64 HB 2406
shall be subject to chapter 51.52 RCW)) pursuant to RCW 51.52.050. In 1
the event the order of distribution becomes final under chapter 51.52 2
RCW, the director or the director's designee may file with the clerk 3
of any county within the state a warrant in the amount of the sum 4
representing the unpaid lien plus interest accruing from the date the 5
order became final. The clerk of the county in which the warrant is 6
filed shall immediately designate a superior court cause number for 7
such warrant and the clerk shall cause to be entered in the judgment 8
docket under the superior court cause number assigned to the warrant, 9
the name of such worker or beneficiary mentioned in the warrant, the 10
amount of the unpaid lien plus interest accrued and the date when the 11
warrant was filed. The amount of such warrant as docketed shall 12
become a lien upon the title to and interest in all real and personal 13
property of the injured worker or beneficiary against whom the 14
warrant is issued, the same as a judgment in a civil case docketed in 15
the office of such clerk. The sheriff shall then proceed in the same 16
manner and with like effect as prescribed by law with respect to 17
execution or other process issued against rights or property upon 18
judgment in the superior court. Such warrant so docketed shall be 19
sufficient to support the issuance of writs of garnishment in favor 20
of the department in the manner provided by law in the case of 21
judgment, wholly or partially unsatisfied. The clerk of the court 22
shall be entitled to a filing fee under RCW 36.18.012(10), which 23
shall be added to the amount of the warrant. A copy of such warrant 24
shall be mailed to the injured worker or beneficiary within three 25
days of filing with the clerk. 26
(7) The director, or the director's designee, may issue to any 27
person, firm, corporation, municipal corporation, political 28
subdivision of the state, public corporation, or agency of the state, 29
a notice and order to withhold and deliver property of any kind if he 30
or she has reason to believe that there is in the possession of such 31
person, firm, corporation, municipal corporation, political 32
subdivision of the state, public corporation, or agency of the state, 33
property which is due, owing, or belonging to any worker or 34
beneficiary upon whom a warrant has been served by the department for 35
payments due to the state fund. The notice and order to withhold and 36
deliver shall be served by the sheriff of the county or by the 37
sheriff's deputy; by a method for which receipt can be confirmed or 38
tracked; or by any authorized representatives of the director. Any 39
person, firm, corporation, municipal corporation, political 40
p. 65 HB 2406
subdivision of the state, public corporation, or agency of the state 1
upon whom service has been made shall answer the notice within 2
((twenty)) 20 days exclusive of the day of service, under oath and in 3
writing, and shall make true answers to the matters inquired of in 4
the notice and order to withhold and deliver. In the event there is 5
in the possession of the party named and served with such notice and 6
order, any property which may be subject to the claim of the 7
department, such property shall be delivered forthwith to the 8
director or the director's authorized representative upon demand. If 9
the party served and named in the notice and order fails to answer 10
the notice and order within the time prescribed in this section, the 11
court may, after the time to answer such order has expired, render 12
judgment by default against the party named in the notice for the 13
full amount claimed by the director in the notice together with 14
costs. In the event that a notice to withhold and deliver is served 15
upon an employer and the property found to be subject thereto is 16
wages, the employer may assert in the answer to all exemptions 17
provided for by chapter 6.27 RCW to which the wage earner may be 18
entitled. 19
Sec. 33. RCW 51.24.070 and 1984 c 218 s 6 are each amended to 20
read as follows: 21
(1) The department or self-insurer may require the injured worker 22
or beneficiary to exercise the right of election under this chapter 23
by ((serving a written demand by registered mail, certified mail, or 24
personal service on the worker or beneficiary )) notifying the injured 25
worker or beneficiary using an electronic or nonelectronic method by 26
which the notice can be tracked or the delivery can be confirmed. 27
Before using an electronic method for the first time under this 28
section, the department or self-insurer must provide the injured 29
worker or beneficiary the option to receive communication through a 30
nonelectronic method. 31
(2) Unless an election is made within ((sixty)) 60 days of the 32
receipt of the demand, and unless an action is instituted or settled 33
within the time granted by the department or self-insurer, the 34
injured worker or beneficiary is deemed to have assigned the action 35
to the department or self-insurer. The department or self-insurer 36
shall allow the worker or beneficiary at least ((ninety)) 90 days 37
from the election to institute or settle the action. When a 38
p. 66 HB 2406
beneficiary is a minor child the demand shall be served upon the 1
legal custodian or guardian of such beneficiary. 2
(3) If an action which has been filed is not diligently 3
prosecuted, the department or self-insurer may petition the court in 4
which the action is pending for an order assigning the cause of 5
action to the department or self-insurer. Upon a sufficient showing 6
of a lack of diligent prosecution the court in its discretion may 7
issue the order. 8
(4) If the department or self-insurer has taken an assignment of 9
the third party cause of action under subsection (2) of this section, 10
the injured worker or beneficiary may, at the discretion of the 11
department or self-insurer, exercise a right of reelection and assume 12
the cause of action subject to reimbursement of litigation expenses 13
incurred by the department or self-insurer. 14
Sec. 34. RCW 51.24.080 and 1977 ex.s. c 85 s 6 are each amended 15
to read as follows: 16
(1) If the injured worker or beneficiary elects to seek damages 17
from the third person, notice of the election must be given to the 18
department or self-insurer((. The notice shall be by registered mail, 19
certified mail, or personal service )) using an electronic or 20
nonelectronic method by which the notice can be tracked or the 21
delivery can be confirmed . If an action is filed by the injured 22
worker or beneficiary, a copy of the complaint must be ((sent by 23
registered mail to the department or self-insurer )) mailed to the 24
department or self-insurer using an electronic or nonelectronic 25
method by which the notice can be tracked or the delivery can be 26
confirmed. 27
(2) A return showing service of the notice on the department or 28
self-insurer shall be filed with the court but shall not be part of 29
the record except as necessary to give notice to the defendant of the 30
lien imposed by RCW 51.24.060(2). 31
Sec. 35. RCW 51.32.210 and 1977 ex.s. c 350 s 55 are each 32
amended to read as follows: 33
Claims of injured workers of employers who have secured the 34
payment of compensation by insuring with the department shall be 35
promptly acted upon by the department. Where temporary disability 36
compensation is payable, the first payment thereof shall be 37
((mailed)) sent within ((fourteen)) 14 days after receipt of the 38
p. 67 HB 2406
claim at the department's offices in Olympia and shall continue at 1
regular semimonthly intervals. The payment of this or any other 2
benefits under this title, prior to the entry of an order by the 3
department in accordance with RCW 51.52.050 as now or hereafter 4
amended, shall be not considered a binding determination of the 5
obligations of the department under this title. The acceptance of 6
compensation by the worker or his or her beneficiaries prior to such 7
order shall likewise not be considered a binding determination of 8
their rights under this title. 9
Sec. 36. RCW 51.48.180 and 1986 c 9 s 15 are each amended to 10
read as follows: 11
If the amount of taxes, interest, or penalties assessed by the 12
director or the director's designee by order and notice of assessment 13
pursuant to RCW 51.48.170 is not paid within ((ten)) 10 days after 14
the service or ((mailing)) electronic or nonelectronic mailing of the 15
order and notice of assessment, the director or the director's 16
designee may collect the amount stated in said assessment by the 17
distraint, seizure, and sale of the property, goods, chattels, and 18
effects of the delinquent employer. There shall be exempt from 19
distraint and sale under this section such goods and property as are 20
exempt from execution under the laws of this state.21
Sec. 37. RCW 51.52.050 and 2019 c 190 s 1 are each amended to 22
read as follows: 23
(1)(a) Whenever the department has made any order, decision, or 24
award, it shall promptly serve the worker, beneficiary, employer, or 25
other person affected thereby, with a copy ((thereof by mail, or if 26
the worker, beneficiary, employer, or other person affected thereby 27
chooses, the department may send correspondence and other legal 28
notices by secure electronic means except for orders communicating 29
the closure of a claim )), using an electronic or nonelectronic 30
method, of the order, decision, or award. Before using an electronic 31
method for the first time under this section, the department must 32
provide the worker, beneficiary, employer, or other person affected 33
thereby the option to receive communication through a nonelectronic 34
method. 35
(b) In the event the department has made an order communicating 36
the closure of a claim of a self-insured employer, the self-insured 37
employer may serve the department order provided the self-insured 38
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employer does so using a separate, secure, and verifiable 1
((nonelectronic)) means of delivery in accordance with the 2
requirements for the department's service in (a) of this subsection 3
and includes the department prescribed notice explaining the contents 4
of the order and any protest or appeal rights. The service by the 5
self-insured employer is a communication for the purposes of filing 6
an appeal under RCW 51.52.060. 7
((Persons who choose to )) (c) Workers, beneficiaries, employers, 8
or other persons affected thereby who receive correspondence and 9
other legal notices electronically shall be provided information to 10
assist them in ensuring all electronic documents and communications 11
are received. Correspondence and notices must be addressed to ((such 12
a person at his or her last known postal or electronic )) workers, 13
beneficiaries, employers, or other persons affected thereby addressed 14
to the address as shown by the records of the department. 15
Correspondence and notices sent electronically are considered 16
received on the date sent by the department. ((The copy, in case the 17
same))18
(d) When the department's order, decision, or award is a final 19
order, decision, or award, the served copy shall bear on the same 20
side of the same page on which is found the amount of the award, a 21
statement, set in black faced type of at least ((ten)) 10 point body 22
or size, that such final order, decision, or award shall become final 23
within ((sixty)) 60 days from the date the order is communicated 24
through nonelectronic methods and 65 days from the date the order is 25
communicated through electronic methods to the parties unless a 26
written request for reconsideration is filed with the department of 27
labor and industries, Olympia, or an appeal is filed with the board 28
of industrial insurance appeals, Olympia. However, a department order 29
or decision making demand, whether with or without penalty, for 30
repayment of sums paid to a provider of medical, dental, vocational, 31
or other health services rendered to an industrially injured worker, 32
shall state that such order or decision shall become final within 33
((twenty)) 20 days from the date the order or decision is 34
communicated to the parties unless a written request for 35
reconsideration is filed with the department of labor and industries, 36
Olympia, or an appeal is filed with the board of industrial insurance 37
appeals, Olympia. 38
(2)(a) Whenever the department has taken any action or made any 39
decision relating to any phase of the administration of this title 40
p. 69 HB 2406
the worker, beneficiary, employer, or other person aggrieved thereby 1
may request reconsideration of the department, or may appeal to the 2
board. In an appeal before the board, the appellant shall have the 3
burden of proceeding with the evidence to establish a prima facie 4
case for the relief sought in such appeal. 5
(b) An order by the department awarding benefits shall become 6
effective and benefits due on the date issued. Subject to (b)(i) and 7
(ii) of this subsection, if the department order is appealed the 8
order shall not be stayed pending a final decision on the merits 9
unless ordered by the board. Upon issuance of the order granting the 10
appeal, the board will provide the worker with notice concerning the 11
potential of an overpayment of benefits paid pending the outcome of 12
the appeal and the requirements for interest on unpaid benefits 13
pursuant to RCW 51.52.135. A worker may request that benefits cease 14
pending appeal at any time following the employer's motion for stay 15
or the board's order granting appeal. The request must be submitted 16
in writing to the employer, the board, and the department. Any 17
employer may move for a stay of the order on appeal, in whole or in 18
part. The motion must be filed within ((fifteen)) 15 days of the 19
order granting appeal. The board shall conduct an expedited review of 20
the claim file provided by the department as it existed on the date 21
of the department order. The board shall issue a final decision 22
within ((twenty-five)) 25 days of the filing of the motion for stay 23
or the order granting appeal, whichever is later. The board's final 24
decision may be appealed to superior court in accordance with RCW 25
51.52.110. The board shall grant a motion to stay if the moving party 26
demonstrates that it is more likely than not to prevail on the facts 27
as they existed at the time of the order on appeal. The board shall 28
not consider the likelihood of recoupment of benefits as a basis to 29
grant or deny a motion to stay. If a self -insured employer prevails 30
on the merits, any benefits paid may be recouped pursuant to RCW 31
51.32.240. 32
(i) If upon reconsideration requested by a worker or medical 33
provider, the department has ordered an increase in a permanent 34
partial disability award from the amount reflected in an earlier 35
order, the award reflected in the earlier order shall not be stayed 36
pending a final decision on the merits. However, the increase is 37
stayed without further action by the board pending a final decision 38
on the merits. 39
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(ii) If any party appeals an order establishing a worker's wages 1
or the compensation rate at which a worker will be paid temporary or 2
permanent total disability or loss of earning power benefits, the 3
worker shall receive payment pending a final decision on the merits 4
based on the following: 5
(A) When the employer is self-insured, the wage calculation or 6
compensation rate the employer most recently submitted to the 7
department; or 8
(B) When the employer is insured through the state fund, the 9
highest wage amount or compensation rate uncontested by the parties.10
Payment of benefits or consideration of wages at a rate that is 11
higher than that specified in (b)(ii)(A) or (B) of this subsection is 12
stayed without further action by the board pending a final decision 13
on the merits. 14
(c) In an appeal from an order of the department that alleges 15
willful misrepresentation, the department or self-insured employer 16
shall initially introduce all evidence in its case in chief. Any such 17
person aggrieved by the decision and order of the board may 18
thereafter appeal to the superior court, as prescribed in this 19
chapter. 20
Sec. 38. RCW 70.79.320 and 2011 c 301 s 21 are each amended to 21
read as follows: 22
(1) It shall be unlawful for any person, firm, partnership, or 23
corporation to operate under pressure in this state a boiler or 24
unfired pressure vessel, to which this chapter applies, without a 25
valid inspection certificate as provided for in this chapter.26
(2) The department may assess a penalty against a person 27
violating a provision of this chapter. The penalty shall be not more 28
than ((five hundred dollars )) $500. Each day that the violation 29
continues is a separate violation and is subject to a separate 30
penalty. 31
(3) The department may not assess a penalty until it adopts rules 32
describing the method it will use to calculate penalties for various 33
violations. 34
(4) The department shall notify the violator of its action, and 35
the reasons for its action ((, in writing)). The department shall send 36
the notice using ((a)) an electronic or nonelectronic method by which 37
the ((mailing)) notice can be tracked or the delivery can be 38
confirmed to the violator that a hearing may be requested under RCW 39
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70.79.361. Before using an electronic method for the first time under 1
this section, the department must provide the violator the option to 2
receive communication through a nonelectronic method. The hearing 3
shall not stay the effect of the penalty. 4
Sec. 39. RCW 70.87.125 and 2011 c 301 s 22 are each amended to 5
read as follows: 6
(1) A license issued under this chapter may be suspended, 7
revoked, or subject to civil penalty by the department upon 8
verification that any one or more of the following reasons exist:9
(a) Any false statement as to a material matter in the 10
application; 11
(b) Fraud, misrepresentation, or bribery in securing a license;12
(c) Failure to notify the department and the owner or lessee of a 13
conveyance or related mechanisms of any condition not in compliance 14
with this chapter; 15
(d) A violation of any provisions of this chapter; and16
(e) If the elevator contractor does not employ an individual 17
designated as the primary point of contact with the department and 18
who has successfully completed the elevator contractor examination. 19
In the case of a separation of employment, termination of this 20
relationship or designation, or death of the designated individual, 21
the elevator contractor must, within ((ninety)) 90 days, designate a 22
new individual who has successfully completed the elevator contractor 23
examination. 24
(2) The department may suspend or revoke a permit if:25
(a) The permit was obtained through fraud or by error if, in the 26
absence of error, the department would not have issued the permit;27
(b) The conveyance for which the permit was issued has not been 28
worked on in accordance with this chapter; or 29
(c) The conveyance has become unsafe. 30
(3) The department shall suspend any license issued under this 31
chapter promptly after receiving notice from the department of social 32
and health services that the holder of the license has been certified 33
pursuant to RCW 74.20A.320 as a person who is not in compliance with 34
a support order. If the person has continued to meet all other 35
license requirements during the suspension, reissuance of the license 36
shall be automatic upon the department's receipt of a release issued 37
by the department of social and health services stating that the 38
person is in compliance with the order. 39
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(4) The department shall notify in writing the owner, licensee, 1
or person performing conveyance work, of its action and the reason 2
for the action. The department shall send the notice using ((a)) an 3
electronic or nonelectronic method by which the ((mailing)) notice 4
can be tracked or the delivery can be confirmed to the last known 5
address of the owner or person. Before using an electronic method for 6
the first time under this section, the department must provide the 7
owner, licensee, or person performing conveyance work the option to 8
receive communication through a nonelectronic method. The notice 9
shall inform the owner , licensee, or person performing conveyance 10
work that a hearing may be requested pursuant to RCW 70.87.170.11
(5)(a) If the department has suspended or revoked a permit or 12
license because of fraud or error, and a hearing is requested, the 13
suspension or revocation shall be stayed until the hearing is 14
concluded and a decision is issued. 15
(b) If the department has revoked or suspended a license because 16
the licensee performing the work covered by this chapter is working 17
in a manner that does not effectively prevent injuries or deaths or 18
protect employees and the public from unsafe conditions as is 19
required by this chapter, the suspension or revocation is effective 20
immediately and shall not be stayed by a request for a hearing.21
(c) If the department has revoked or suspended a permit because 22
the conveyance is unsafe or the conveyance work is not permitted and 23
performed in accordance with this chapter, the suspension or 24
revocation is effective immediately and shall not be stayed by a 25
request for a hearing. 26
(6) The department must remove a suspension or reinstate a 27
revoked license if the licensee pays all the assessed civil penalties 28
and is able to demonstrate to the department that the licensee has 29
met all the qualifications established by this chapter.30
(7) The department shall remove a suspension or reinstate a 31
revoked permit if a conveyance is repaired or modified to bring it 32
into compliance with this chapter. 33
Sec. 40. RCW 70.87.185 and 2011 c 301 s 23 are each amended to 34
read as follows: 35
(1) The department may assess a penalty against a person 36
violating a provision of this chapter. The penalty shall be not more 37
than ((five hundred dollars )) $500. Each day that the violation 38
p. 73 HB 2406
continues is a separate violation and is subject to a separate 1
penalty. 2
(2) The department may not assess a penalty until it adopts rules 3
describing the method it will use to calculate penalties for various 4
violations. 5
(3) The department shall notify the violator of its action, and 6
the reasons for its action ((, in writing)). The department shall send 7
the notice using ((a)) an electronic or nonelectronic method by which 8
the ((mailing)) notice can be tracked or the delivery can be 9
confirmed to the violator's last known address. Before using an 10
electronic method for the first time under this section, the 11
department must provide the violator the option to receive 12
communication through a nonelectronic method. The notice shall inform 13
the violator that a hearing may be requested under RCW 70.87.170. The 14
hearing shall not stay the effect of the penalty. 15
Sec. 41. RCW 70.87.205 and 2011 c 301 s 24 are each amended to 16
read as follows: 17
(1) Disputes arising under RCW 70.87.200(2) shall be resolved by 18
arbitration. The request shall be sent using ((a)) an electronic or 19
nonelectronic method by which the ((mailing)) notice can be tracked 20
or the delivery can be confirmed. Before using an electronic method 21
for the first time under this section, the department must provide 22
the parties the option to receive communication through a 23
nonelectronic method.24
(2) The department shall appoint one arbitrator; the municipality 25
shall appoint one arbitrator; and the arbitrators chosen by the 26
department and the municipality shall appoint the third arbitrator. 27
If the two arbitrators cannot agree on the third arbitrator, the 28
presiding judge of the Thurston county superior court, or his or her 29
designee, shall appoint the third arbitrator. 30
(3) The arbitration shall be held pursuant to the procedures in 31
chapter 7.04A RCW, except that RCW 7.04A.280(1)(f) shall not apply. 32
The decision of the arbitrators is final and binding on the parties. 33
Neither party may appeal a decision to any court. 34
(4) A party may petition the Thurston county superior court to 35
enforce a decision of the arbitrators. 36
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