All Employers with Seattle, WA Independent Contractors
September 1, 2022
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Seattle’s Independent Contractor Protections Ordinance implements pay transparency and timely payments for independent contractors. The law applies to any entities, including non-profits, that regularly engage in business or commercial activity. In addition, a covered contract must: 1) be for an exchange of services for compensation; and 2) involve proposed or actual compensation of $600 or more, either alone or in combination with all services provided by the independent contractor to the same hiring entity in a calendar year.
The Ordinance requires hiring entities to provide independent contractors with a notice of rights and a pre-contract disclosure. The notice of rights must include notification of the independent contractor’s right to a pre-contract disclosure, timely payment, payment disclosures, retaliation protection, and notification of the independent contractor’s right to file a complaint with the Seattle Office of Labor Standards or file a private lawsuit. A pre-contract disclosure must include the date, names of parties and contact information, description of the services to be performed, location of the work, compensation structure, and pay schedule. Gross payment, specific deductions, and net payment must also be included. Hiring entities must maintain records for three years showing compliance.
- Review the Ordinance here and review the Fact Sheet here.
- Have independent contractor agreements reviewed by legal counsel.
- Prepare notice or rights and pre-contract disclosures.
- Have appropriate personnel trained on independent contractor requirements.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2022 ManagEase