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Record No: CB 120069    Version: Council Bill No: CB 120069
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 6/14/2021
Ordinance No: Ord 126373
Title: AN ORDINANCE relating to independent contractors in Seattle; establishing labor standards requirements for independent contractors working in Seattle; amending Sections 3.02.125, 3.15.000, and 6.208.020 of the Seattle Municipal Code; and adding a new Chapter 14.34 to the Seattle Municipal Code.
Sponsors: Lisa Herbold
Attachments: 1. Summary and Fiscal Note
Supporting documents: 1. Central Staff Memo (5/18/21), 2. Presentation (5/18/21), 3. Central Staff Memo (6/4/21), 4. Presentation (6/4/21), 5. Proposed Substitute Bill-Independent Contractor Protections, 6. Proposed Amendment 1, 7. Mayor's Letter on Returning Bill Unsigned, 8. Signed Ordinance 126373
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to independent contractors in Seattle; establishing labor standards requirements for independent contractors working in Seattle; amending Sections 3.02.125, 3.15.000, and 6.208.020 of the Seattle Municipal Code; and adding a new Chapter 14.34 to the Seattle Municipal Code.
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WHEREAS, independent contract work is a growing source of income for workers across the country; and
WHEREAS, in 2018, the United States Bureau of Labor Statistics (BLS) reported that 6.9 percent of workers (10.6 million individuals) gain their primary source of income as an independent contractor; and
WHEREAS, a 2019 Washington State Department of Commerce study found that independent contracting is on the rise in Washington state, increasing by 15 percent from 2008 to 2016; and
WHEREAS, independent contractors have the opportunity for increased flexibility and control over their work, but they also face challenges, such as working without employee protections, non-payment or late payment, lack of information about the terms and conditions of their work, and misclassification; and
WHEREAS, in 2018, a Gallup, Inc. survey reported that 39 percent of independent contractors reported problems with timely and accurate payment as compared to 18 percent of employees in traditional employment; and
WHEREAS, under current law, an independent contractor's primary legal recourse for non-payment or late payment is a legal action for breach of contract in small claims court or civil court, and the time and expense of going to court and/or hiring an attorney prevents many independent contractors from pursuing payment claims; and
WHEREAS, in Seattle, Transportation Network Companies (TNCs) and food delivery network companies must provide platform gig workers hired as independent contractors with certain information about their jobs and pay, but there are not comprehensive transparency requirements f...

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