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Bill would trigger L&I investigations when multiple independent contractors perform same finishing work on public works

Labor and Workplace Standards Committee · February 18, 2026

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Summary

Engrossed substitute SB 6302 would require Department of Labor and Industries to investigate potential misclassification on public works when three or more independent contractors perform similar finishing trades, with proponents saying the trigger improves enforcement without banning legitimate contractor use.

The committee heard engrossed substitute Senate Bill 63 02, addressing alleged misclassification of independent contractors on public works projects. Staff said the bill directs L&I to investigate referrals and, if misclassification is found, to apply prevailing‑wage and other employer obligations to the contractor or subcontractor.

Panelists including Neil Hartman (Plumbers & Pipefitters), Carolyn Logue (Associated Builders & Contractors), and Jerry Vanderwood (AGC) said they supported the amended version after negotiation. Supporters described the bill as creating a clear enforcement trigger — for example, when three or more independent contractors are performing the same type of finishing work, L&I must investigate — while preserving legitimate uses of contractors and avoiding a blanket prohibition.

Proponents said the substitute reflects recommendations from the underground economy task force and that the substitute aims to prompt front‑end audits rather than retroactive penalties, balancing enforcement with the needs of small contractors.

The committee closed the hearing and adjourned for the morning.