Seattle enacts new independent contractor protections

Seattle’s new Independent Contractor Protections Ordinance took effect on September 1, 2022. The law requires certain employers to provide independent contractors with disclosures both before entering a contract and at the time of payment.

Who is covered?

The law broadly defines “hiring entity” and “independent contractor” and exempts only a few kinds of relationships from its coverage.

A “hiring entity” is defined as any company that regularly engages in business or commercial activity, including nonprofit organizations. An “independent contractor” is defined as any self-employed person hired to provide services in exchange for compensation.

More specifically, the law applies to self-employed independent contractors who (1) have no employees, (2) perform any part of their work in Seattle for a commercial hiring entity, and (3) will receive or may reasonably expect to receive at least $600 in total compensation from the hiring entity between January 1 and December 31 in a given year.