SENATE BILL REPORT

SB 6671

BYSenators Anderson, Saling, Matson and Lee

Granting an exemption to the definition of worker for industrial insurance purposes.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 30, 1990; February 2, 1990

Majority Report:     That Substitute Senate Bill No. 6671 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, Matson, Saling, West.

Senate Staff:Forrest Bathurst (786-7429)

                February 6, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 1990

BACKGROUND:

Current statutes are unclear regarding the criteria on which workers are judged to be independent contractors.  Requests have been made by many parties to more clearly define when a worker is and is not an independent contractor.

SUMMARY:

A person, firm or corporation is considered to be an independent contractor when all of the following conditions are met:  they are issued a federal employer identification number by the IRS; they establish an account with any state agency for the payment of taxes normally paid by employers and businesses; they are issued a uniform business identifier number by the state of Washington; their principal place of business is eligible for a federal income tax deduction that is not furnished by an employer; they maintain a separate set of income and expense books; they are responsible for the purchase or lease of tools, equipment, and supplies of the business; and they are not subject to the control, direction, or supervision of an employer in the daily conduct of the business.

EFFECT OF PROPOSED SUBSTITUTE:

No substantive changes are made in the substitute bill.  Each of the seven criteria that must be met to be considered an independent contractor remain the same.  However, language is modified so each criterion is more clearly defined.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Bill Pickell, Washington Contract Loggers Association; Jo Ann Hamilton; Bob Dilger, Washington Building Trades Council; Nick Sanders, Roesler Timber Co., Inc.; Doug Bohlke, Taxi Association; Gary Smith, IBA; Mike Welch, WSTLA