Washington Business 2019 Legislative Review & Vote Record | Page 9

issue area reports | employment & workplace
portability of benefits/
independent contractors
SB 5326
booth rental agreements
Failed/AWB Opposed
Senate Bill 5326, sponsored by Sen. Karen
Keiser, D-Kent, would have repealed the
exclusion of cosmetology and barbering
booth renters from the definition
o f e m p l oy m e n t f o r t h e p u r p o s e s o f
unemployment insurance and mandatory
coverage for booth renters under workers’
compensation law. In addition, it would
have removed cosmetology and barbering
booth renters from the list of booth
renters considered to be independent
contractors for the purposes of the
business and occupation tax. This bill
would have resulted in most hairdressers
no longer being considered independent
contractors. It also would have taken away
the ability of the booth renter from also
being a cosmetologist. AWB worked with
cosmetologists and others to stop this bill
from moving forward.
SHB 1515
employee/employer
relationships
Failed/AWB Opposed
Substitute House Bill 1515, sponsored by Rep.
Marcus Riccelli, D-Spokane, would have
created the Employee Fair Classification
Act, prohibiting the misclassification of
employees as independent contractors. It
redefined an “independent contractor” for
purposes of the Employee Fair Classification
Act and established the same definition
for purposes of the Minimum Wage Act,
unemployment insurance, industrial
insurance, and other employment laws. As
written, most individuals who are currently
considered independent contractors would
no longer be independent contractors.
In addition, it would have eliminated
the statutory exemption from industrial
insurance for taxi drivers and drivers
providing commercial transportation
services. The substitute House bill removed
most provisions and replaced them with
the creation of a work group to examine
questions regarding worker classifications
as employees, independent contractors, or
exempt from coverage under various laws.
The companion bill was SB 5513, sponsored
by Sen. Karen Keiser, D-Kent. AWB opposed
the original bill and was neutral regarding
the substitute version.
HB 1601
universal worker
protection act
Failed/AWB Opposed
House Bill 1601, sponsored by Rep. Gael
Tarleton, D-Seattle, would have established
the universal worker protections act. The
bill, as well as the companion, purported to
go after the underground economy and the
misclassification of employees. However,
this bill would have adopted the same
language as the independent contractor
bills, essentially eliminating most
independent contractors in the state. It also
would have created wage boards that would
set wages and benefits for independent
contractors without significant input from
independent contractors. The companion
bill was Senate Bill 5690, sponsored by Sen.
Rebecca Saldaña, D-Seattle.
SB 5987
minimum wage/independent
contractors
Failed/AWB Opposed
Jenny Treutle, owner/stylist at Studio 4 Hair Design in Moses Lake, speaks in opposition to SB 5326
during testimony before the Senate Labor & Commerce Committee.
Bill considered as part of
AWB’s voting record
Favorable outcome for
Washington businesses
Senate Bill 5987, sponsored by Sen.
K a r e n Ke i s e r, D - Ke n t , w o u l d h av e
applied minimum wage requirements to
independent contractors. This bill sought
to require that independent contractors
be considered employees for the purpose
of the minimum wage act if they are
Missed Opportunities
special edition 2019
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