The Independent Contractor Protection Ordinance (ICPO) is a new Seattle ordinance that is set to go into effect on September 1, 2022. The new law is designed to protect independent contractors in terms of both payment and information surrounding their conditions of work. Since our firm has already screened several calls regarding the ICPO, we provide the following details.
Definition of “Independent Contractor”
Washington law defines an independent contractor as a self-employed person that is hired by a hiring entity to provide services in exchange for compensation. Independent contractors are not employees. Note that the ICPO does not apply to:
- Workers who only lease workspace from a hiring entity, or
- Contractors who have employees.
Note that the ICPO does not apply to all contractors. It only applies to independent contractors that:
- Perform their work, either in whole or in part, in the City of Seattle, and
- Are compensated in an amount of $600 or greater, either by itself or when combined for other services provided by the contractor during the same calendar year.
Hiring Entities That the Law Applies To
The new ordinance applies to any entity that hires a contractor to provide any service to either the entity or a third party. Some examples of covered entities include self-employed people, LLCs, corporations, partnerships, and nonprofit organizations.
Mandates by the ICPO
The new ordinance essentially requires a hiring entity to do four important things with regards to independent contractors. These are:
- Before a contractor begins work, the entity must provide the contractor with information in writing on the terms and conditions of work.
- Entities have to pay contractors in a timely manner. This means either on or before the date compensation is due as provided in the contract, or within 30 days of completion of services.
- When payment is made, the entity has to provide contractors with itemized payment information in writing.
- Entities have to provide contractors with a written notice of their rights. These include the right to disclosures, no retaliation, and rights of action for violations of the ICPO.
Contact The McWilliams Law Group for Help
When you are ready to open a new business or take your current business to the next level, the lawyers at the McWilliams Law Group are here to help. We can help ensure that your operations are in full compliance with all of Washington’s employment laws. Our attorneys work closely with business owners throughout Washington, providing individualized and strategic advice to help their businesses run smoothly. Contact us now and get the skilled business advice that you deserve.
