The law applies to covered finishing work in drywall, flooring, tiling, painting and glazier/glasswork trades. For wall and ceiling contractors operating in Washington state, the most immediate impact is likely to be increased scrutiny of independent-contractor arrangements on public works jobs.

AGC of Washington said the law does not create new penalties for misclassification, but it will increase L&I scrutiny. If L&I determines that workers have been misclassified as independent contractors, the contractor or subcontractor that engaged them is subject to all applicable requirements, liabilities and penalties under Chapter 39.12 RCW, and L&I must make appropriate referrals under Washington’s unemployment insurance and workers’ compensation laws.

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Referrals for investigation can come from several sources, including the public agency awarding the contract, any contractor or subcontractor on the project, a labor organization representing workers performing covered finishing work, or an individual performing the covered work.

Supporters of the measure have framed the law as a way to address concerns that workers in finishing trades are sometimes treated as independent contractors rather than employees, allowing firms to avoid obligations such as workers’ compensation and other employment-related costs. AGC of Washington noted that misclassification can place contractors following the rules at a competitive disadvantage.

The law gives contractors and subcontractors on Washington state public projects another reason to review how they classify and document independent contractors, particularly when multiple individuals are performing the same finishing trade at the same time. Washington L&I maintains guidance on determining whether a worker qualifies as a bona fide independent contractor or should be treated as a covered worker.

For drywall, ceiling and other interior finishing contractors, the takeaway is straightforward: public works projects in Washington state now carry a clearer trigger for misclassification review, and the trigger can be pulled by agencies, competitors, unions or workers on the job.