Public works/finishing trade

AN ACT Relating to misclassification in the finishing trades on 1
public works projects; amending RCW 39.12.100, 51.08.185, and 2
51.08.195; and adding a new section to chapter 39.12 RCW.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 39.12 5
RCW to read as follows: 6
(1) No contractor or subcontractor may engage more than two 7
independent contractors, as described in RCW 39.12.100, to perform 8
covered finishing work on a public works project. 9
(2) If a contractor or subcontractor violates subsection (1) of 10
this section, any individual engaged by the contractor or 11
subcontractor to perform covered finishing work is a laborer for the 12
purposes of this chapter and an employee for the purposes of Title 51 13
RCW. 14
(3) For the purposes of this section, "covered finishing work" 15
means work in drywall, flooring, tiling, painting, and glazier and 16
glasswork. 17
Sec. 2. RCW 39.12.100 and 2023 c 88 s 6 are each amended to read 18
as follows: 19
S-4100.2
SENATE BILL 6302
State of Washington 69th Legislature 2026 Regular Session
By Senators Conway, Saldaña, Hasegawa, Orwall, and Valdez
Read first time 01/26/26. Referred to Committee on Labor & Commerce.
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(1) For the purposes of this chapter, an individual employed on a 1
public works project is not considered to be a laborer, worker, or 2
mechanic when: 3
(((1))) (a) The individual has been and is free from control or 4
direction over the performance of the service, both under the 5
contract of service and in fact; 6
(((2))) (b) The service is either outside the usual course of 7
business for the contractor or contractors for whom the individual 8
performs services, or the service is performed outside all of the 9
places of business of the enterprise for which the individual 10
performs services, or the individual is responsible, both under the 11
contract and in fact, for the costs of the principal place of 12
business from which the service is performed; 13
(((3))) (c) The individual is customarily engaged in an 14
independently established trade, occupation, profession, or business, 15
of the same nature as that involved in the contract of service, or 16
the individual has a principal place of business for the business the 17
individual is conducting that is eligible for a business deduction 18
for federal income tax purposes other than that furnished by the 19
employer for which the business has contracted to furnish services;20
(((4))) (d) On the effective date of the contract of service, the 21
individual is responsible for filing at the next applicable filing 22
period, both under the contract of service and in fact, a schedule of 23
expenses with the internal revenue service for the type of business 24
the individual is conducting; 25
(((5))) (e) On the effective date of the contract of service, or 26
within a reasonable period after the effective date of the contract 27
of service, the individual has an active and valid certificate of 28
registration with the department of revenue, and an active and valid 29
account with any other state agencies as required by the particular 30
case, for the business the individual is conducting for the payment 31
of all state taxes normally paid by employers and businesses and has 32
registered for and received a unified business identifier number from 33
the state of Washington; 34
(((6))) (f) On the effective date of the contract of service, the 35
individual is maintaining a separate set of books or records that 36
reflect all items of income and expenses of the business which the 37
individual is conducting; and 38
(((7))) (g) On the effective date of the contract of service, if 39
the nature of the work performed requires registration under chapter 40
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18.27 RCW or licensure under chapter 18.106, 19.28, or 70.87 RCW, the 1
individual has the contractor registration and contractor licenses 2
required by the laws of this state including chapters 18.27, 18.106, 3
19.28, and 70.87 RCW. 4
(2) This section does not apply to individuals performing covered 5
finishing work that are laborers pursuant to section 1 (2) of this 6
act.7
Sec. 3. RCW 51.08.185 and 1977 ex.s. c 350 s 16 are each amended 8
to read as follows: 9
(1) "Employee" shall have the same meaning as "worker" when the 10
context would so indicate, and shall include all officers of the 11
state, state agencies, counties, municipal corporations, or other 12
public corporations, or political subdivisions. 13
(2) "Employee" includes individuals performing covered finishing 14
work that are employees pursuant to section 1(2) of this act.15
Sec. 4. RCW 51.08.195 and 2008 c 102 s 4 are each amended to 16
read as follows: 17
(1) As an exception to the definition of "employer" under RCW 18
51.08.070 and the definition of "worker" under RCW 51.08.180, 19
services performed by an individual for remuneration shall not 20
constitute employment subject to this title if it is shown that:21
(((1))) (a) The individual has been and will continue to be free 22
from control or direction over the performance of the service, both 23
under the contract of service and in fact; and 24
(((2))) (b) The service is either outside the usual course of 25
business for which the service is performed, or the service is 26
performed outside all of the places of business of the enterprise for 27
which the service is performed, or the individual is responsible, 28
both under the contract and in fact, for the costs of the principal 29
place of business from which the service is performed; and30
(((3))) (c) The individual is customarily engaged in an 31
independently established trade, occupation, profession, or business, 32
of the same nature as that involved in the contract of service, or 33
the individual has a principal place of business for the business the 34
individual is conducting that is eligible for a business deduction 35
for federal income tax purposes; and 36
(((4))) (d) On the effective date of the contract of service, the 37
individual is responsible for filing at the next applicable filing 38
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period, both under the contract of service and in fact, a schedule of 1
expenses with the internal revenue service for the type of business 2
the individual is conducting; and 3
(((5))) (e) On the effective date of the contract of service, or 4
within a reasonable period after the effective date of the contract, 5
the individual has established an account with the department of 6
revenue, and other state agencies as required by the particular case, 7
for the business the individual is conducting for the payment of all 8
state taxes normally paid by employers and businesses and has 9
registered for and received a unified business identifier number from 10
the state of Washington; and 11
(((6))) (f) On the effective date of the contract of service, the 12
individual is maintaining a separate set of books or records that 13
reflect all items of income and expenses of the business which the 14
individual is conducting. 15
(2) This section does not apply to individuals performing covered 16
finishing work that are employees pursuant to section 1 (2) of this 17
act.18
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