Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workforce Development Committee

SB 5476

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Clarifying the employment status of independent contractors in the news business.

Sponsors: Senators Hewitt, Keiser, Conway and Holmquist Newbry.

Brief Summary of Bill

  • Modifies exclusions from unemployment insurance, industrial insurance, and the Minimum Wage Act for certain newspaper services to exclude vendors, carriers, delivery persons, and stringers.

Hearing Date: 4/2/13

Staff: Joan Elgee (786-7106).

Background:

Most types of employment in the state are covered for purposes of unemployment insurance. Workers may receive benefits and unemployment contributions (taxes) are owed. Similarly, workers' compensation benefits may be paid and employers are responsible for paying premiums (or self-insuring, if qualified) for most employment. For both unemployment insurance and industrial insurance purposes, newspaper delivery persons selling or distributing newspapers on the street or from house to house are excluded from mandatory coverage.

The Minimum Wage Act establishes standards for employee minimum wage, overtime compensation, and recordkeeping. Newspaper vendors and carriers are excluded from the Minimum Wage Act.

Summary of Bill:

The exclusions from unemployment insurance, industrial insurance, and the Minimum Wage Act for certain newspaper services are modified. Newspaper vendors, carriers, or delivery persons selling or distributing newspapers on the street, to offices, to businesses, or from house to house are excluded from unemployment and industrial insurance and the Minimum Wage Act. Also excluded from coverage is any freelance news correspondent or "stringer" who, using his or her own equipment, submits material for free or for a fee when the material is published.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.