Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workplace Standards Committee

SSB 6289

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.

Background:

Under the state's industrial insurance laws, workers are covered and the employer must pay premiums unless an exception applies. Some employments are excluded from coverage. These include:

A domestic servant in a private home employed by an employer who has less than two employees regularly employed 40 or more hours per week; and
A person employed to do gardening, maintenance, or repair in or about the the employer's place of residence.

In addition, an entity is not an employer and a person is not a "worker" if a six-part independent contractor test is satisfied. The six-part test has the following elements, requiring that the individual:

1. Control or direction. Is free from control or direction;

2. Separate business. Performs a service:

that is outside the usual course of business for which the service is performed,
that is outside all of the places of business of the enterprise for which the service is performed, or
for which the individual is responsible for the costs of the principal place of business where the services are performed;

3. Established independent business. Has:

an independently established trade, occupation, profession, or business, or
a principal place of business that qualifies for an Internal Revenue Service (IRS)

deduction;

4. IRS schedule of expenses. Is responsible for filing a schedule of expenses with the IRS;

5. Books and records. Has a separate set of books and records that reflect all items of income and expenses; and

6. State tax accounts. Has an active and valid account with the Department of Revenue, and any other required state agencies for the payment of taxes, on the contract date or within a reasonable period after the contract date.

Each element of the six-part test must be satisfied.

An employer or worker may not contract away the burdens or benefits of the industrial insurance laws.

Summary of Bill:

An entity administering a digital platform or application is not an employer for: (1) individuals performing services as domestic servants as defined in the law excluding certain domestic workers in private homes from employment; and (2) gardeners, maintenance workers, or repair workers in private homes.

A digital platform is a digital network or software application to connect service providers to requestors to provide services that: (1) provides lists of specified jobs available with employers other than itself; (2) is consistent with the law prohibiting contracting away the burdens or benefits of the industrial insurance laws and clarifies the roles of service providers and requesters; and (3) charges a fee to the employer and/or worker for its services.