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.
Agenda Item 12 Council Bill 1200 69,000,000,002 Independent Contractors in Seattle Establishing Labor Standards Requirements for Independent Contractors Working in Seattle. The committee recommends the bill passed as amended. Thank you so much. Colleagues, as we all know, Councilman ROSQUETA is excused from today's Fall City Council meeting. So in her stead on item 12 will be council member Herbold, who is going to provide the committee report. Councilmember, please. Thank you so much. So in Councilmember Mascots Stead, I'm reporting out this bill from the Finance and Housing Committee for your consideration. As it happens, the bill is sponsored by me. This is Council Bill 12 0069. The committee unanimously recommended passage of the bill as amended with a vote of five zero. If the chair permits, I will now move to address the bill as the sponsor. Please do. Thank you so much. As mentioned this morning and council things, we addressed many of the concerns of stakeholders and the Office of Labor Standards through a substitute bill and an amendment that were both adopted in committee. Just moving backwards a little bit for some context. First, before I get into the the details of that substitute bill in amendment misclassification is a high priority of of our of our labor standards advocates, myself included. Back in February 2019, after working with the Office of Labor Standards, the Council passed Resolution 31863. In part, that resolution requested that the Labor Standards Advisory Council work with the Office of Labor Standards on the issue of misclassification and provide input on effective strategies based on their experience and existing worker and business associations. In May 2020, the Council received final recommendations from SAC. However, due to the pandemic, we were not able to take up the recommendations. And early this year, when my staff and council central staff presented to our SAC on on on the plans to take up their recommendations, again, that that policy deliberation began, I believe was back in February. The Finance and Housing Committee proceeded to have several committee discussions on the legislation, which led to additional conversations and other stakeholders. Finally, on June 4th, the committee adopted a substitute bill to address the concerns that we've heard throughout the process. Again, very broadly, the bill includes a timely payment obligation for for folks who are considered independent contractors. Not every person who is considered an independent contractor has been misclassified, but the timely payment obligation should be obligations that all workers receive, whether or not they work for an employer or are independently contracted. But then also the other obligations in the bill, obligations that require advance notice to a contract employee about what the conditions are for which they will be receiving payment on the front end. And then on the back end, an explanation of, of of why your payment is what it is. These are decent labor standards that I think regular employees take for granted. But in the area of independent contracting, it's these are not standard obligations. And they're the kinds of kinds of information that an independent contractor look at, help them determine whether or not they are being misclassified as they as an independent contractor, and it allows them to advocate for themselves as a worker. The changes in the bill that were in the substitute that we discussed last week clarifies that director of class has authority to issue rules for the enforcement of this legislation. There are some categories of independent workers that have this rule. Issuance authority will allow us to take a look at it clearly, as was always intended with the bill, not cover independent contractors when the only relationship between the contractor and the hiring entity is a pretty rent agreement that is intended to deal with concerns that we've heard from independent contractor hairstylists who only relationship with a salon is renting a workspace and moves the effect date of the legislation to 2022. At best of labor standards requests. It adds a non codified section related to the standard that exists for the Office of Labor Standards to request funding through the budget process directly of the Council. The this is a special authority that the Director has, unlike many departments of of the city, to establish their authority so that they can directly identify what their budget needs are and not have to go to the mayor's office and use this office as the way that council and the mayor will. Elaborate on on the enforcement costs associated with this bill. It removes platform workers from many aspects of the bill, although not for timely payment. Those obligations still exist. And this was a was an amendment that member Strauss requested that I add I raise in his absence in committee last weekend in committee last week which I did so and was included in the substitute on his request. And finally, in line with the removal of PI from gig workers from many of the aspects of the bill, it also states our interest as a Council on establishing minimum compensation and other protections like transparency for firms gig workers from late September to the end of 2021. And that covers the bill. I ask if there are other comments about it. Madam Chair. Happy to open it up. I would like just some closing. Thanks. Before. Before we call the vote. Absolutely. Okay, colleagues. Any other comments any additional comments on the bill as described by Council member Google's. I don't see any hands raised, so it looks like we headed right back to you. Councilmember her votes for those thank you's. Thanks so much. Yeah. I just want to again underscore my thanks to the Labor Standards Advisory Council for bringing these recommendations forward in the first place. The the collaboration of the Office of Labor Standards, as well as all the external participants that gave input to this bill over the last several months. And a special thanks to central South Korea, both for her deft analysis and patient policy shepherding and special thanks as well to Marty for his diligent work communicating with many stakeholders and tying up all the other loose ends. Thank you so much, Councilmember Herbold, with that debate is now closed on the bill. And I'm going to ask the clerk, please call the roll on the passage of the bill. LEWIS. Yes. Morales Yes. Peterson. Yes. Excellent. Yes. Strauss. Yes. Bold. Yes. Whereas I. Council. President Gonzalez I voted in favor and then oppose. The bill passes and the chair will sign it will a quick please affix my signature to the legislation on my behalf. Well the quick please read item 13 into the record.