In the recent legislative session, a bill was passed that will bring more L&I scrutiny over the use (or misuse) of independent contractors in the finishing trades on public works. It will be in effect June 11, 2026.
The bill (ESSB 6302) says, “If a contractor or subcontractor engages three or more independent contractors, as described in RCW 39.12.100, to perform the same type of covered finishing work at the same time on a public works project, the department of labor and industries, upon a referral for investigation, must investigate to determine whether the individuals performing the work have been misclassified as independent contractors.”
The finishing trades covered by the bill are drywall, flooring, tiling, painting, and glazier and glasswork.
The bill was in response to concerns that sometimes workers in those trades are deemed independent contractors rather than employees, and thus the hiring firm avoids paying workers comp and other benefits. Such misclassification puts legitimate contractors at a competitive disadvantage.
There currently are penalties for misclassification. The bill doesn’t increase penalties, but it will bring increased scrutiny by L&I. The referral for an L&I investigation can come from any contractor or sub on the project, the public agency, any worker conducting the finishing work, or a union whose members are conducting the covered work.
L&I has information about how to determine if someone is a bona fide independent contractor or should be reported as a covered worker. Visit the Independent Contractor page on L&I’s website; from there you will find an online tutorial on independent contractors as well as the publication Independent Contractor Guide: A Step-by-Step Guide to Hiring Independent Contractors in Washington State
Contact AGC Chief Lobbyist Jerry VanderWood with questions.