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Worker Misclassification Act.pdf

1701-S.pdf

🔗 Source: apps.leg.wa.gov

📊 Size: 12 KB

📄 Pages: 3 pages

⬇️ Downloads: 160

Summary

The bill aims to address the loss of state revenue due to the misclassification of workers as independent contractors in the construction industry. Key points include:

The state loses over $100 million annually in taxes due to underground economy construction activity.
A seven-part test is used to determine if a worker is an independent contractor, including being free from direction and control and having their own books and records.
The bill prohibits contractors from engaging more than two independent contractors to work on the same task on a single job site if they are not treated as covered workers.
Violations are subject to fines: $500 for the first offense, $2,500 for the second, and $5,000 for the third or subsequent offense.
A third or subsequent offense also results in a one-year suspension of the contractor's certificate of registration.
The director may suspend the contractor's registration until payment of penalties is made in full.

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Description

Washington State Bill 1701 targets the underground economy by addressing worker misclassification in construction, aiming to recover over $100 million in lost taxes. It adds a new section to chapter 18.27 RCW and prescribes penalties. The bill seeks to promote equity for law-abiding businesses.

Technical Information

File Format: PDF
File Size: 12 KB
Pages: 3
Language: EN
Total Downloads: 160
Last Updated: 1 week ago

Document Overview

This PDF document about Worker Misclassification Act provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into Worker Misclassification Act.