HB 2076 — Concerning rights and obligations of transportation network company drivers and transportation network companies.

(n)(j) "Passenger" has the same meaning as "commercial transportation services provider passenger" in RCW 48.177.005.

(o)(k) "Passenger drop-off location" means the location of a driver's vehicle when the passengerdriver leavesends the vehicle.trip in the driver platform.

(p)(l) "Passenger pick-up location" means the location of the driver's vehicle at the time the driver starts the trip in the driver platform.

(q)(m) "Passenger platform miles" means all miles driven during passenger platform time as recorded in a transportation network company's driver platform.

(r)(n) "Passenger platform time" means the period of time when the driver is transporting one or more passengers on a trip.

For sharedpassenger rides,platform time involving multiple passengers picked up from different passenger pick-up locations, passenger platform time means the period of time commencing when the first passenger enters the driver's vehicle until the time when the last passenger exits the driver's vehicle.

(s)(o) "Personal vehicle" has the same meaning as "personal vehicle" in RCW 48.177.005.

(t)(p) "Shared"Tips" ride" means a dispatchedverifiable tripsum which, prior to itsbe commencement,presented by a passenger requestsas througha thegift transportation network company's digital network to share the dispatched trip with one or moregratuity passengers and each passenger is charged a fare that is calculated, in wholerecognition or in part, based on the passenger's request to share all or a part of thesome dispatchedservice tripperformed withfor one or more passengers, regardless of whether the passenger actuallyby sharesthe alldriver orreceiving a part of the dispatchedtip. trip.

(u)(q) "Tips""Transportation meansnetwork acompany" verifiablehas sumthe tosame bemeaning presented by a passenger as a"commercial gifttransportation orservices gratuityprovider" in recognitionRCW of48.177.005. service performed for the passenger by the driver receiving the tip.

(v) "Transportation network company" has the same meaning as defined in RCW 46.04.652.

A transportation network company does not provide for hire transportation service.

(2) A driver is only covered by this section to the extent that the driver provides network services within the state of Washington.

43 ESHBHB 2076 (3)(a)(2) A transportationdriver network company is covered by this section if itthe driver provides anetwork driverservices platform within the state of Washington.

(3)(a) A transportation network company is covered by this section if it operates within the state of Washington.

(4)(a) BeginningFor Decemberthe 31,purposes 2022,of athis transportationsection, network company shall ensure that a driver'sdispatched totaltrip compensationincludes: is not less than the standard set forth in (a)(i), (ii), or (iii) of this subsection (4).

(i) ForA alltrip dispatched trips originating in citieswhich withthe adriver populationtransports ofthe morepassenger thanto 600,000,the onpassenger's adesired perdrop-off triplocation; basis the greater of:

(A)(ii) $0.59A pertrip passengercanceled platformby minutea for all passenger platformor timethe fortransportation thatnetwork trip,company andunless $1.38the pertransportation passengernetwork platformcompany milerefunds forthe all passenger platformcancellation milesfee drivendue onto thatdriver trip;conduct;

or(iii) (B) A minimumtrip ofthat $5.17is percanceled dispatchedby trip.the driver for good cause consistent with company policy;

(ii)and For(iv) allA othertrip dispatchedwhere trips,the passenger does not appear at the greaterpassenger of:pick-up location within five minutes.

(A)(b) $0.34A perdispatched passengertrip platformdoes minutenot andinclude $1.17a pertrip passengercanceled platformby mile;the driver, unless the trip is canceled for good cause as reasonably allowed under this section.

or(5)(a) (B) A minimumtransportation ofnetwork $3.00company pershall dispatchedpay trip.to its drivers all tips and gratuities.

(iii) For all trips originating elsewhere and terminating in cities with a population of more than 600,000:

(A) For all passenger platform time spent within the city on that trip and for all passenger platform miles driven in the city on that trip the compensation standard under (a)(i) of this subsection applies.

(B) For all passenger platform time spent outside the city on that trip and for all passenger platform miles driven outside the city on that trip the compensation standard under (a)(ii) of this subsection applies.

(b) Beginning September 30, 2022, and on each following September 30th, the department shall calculate adjusted per mile and per minute p.

5 ESHB 2076 amounts and per trip minimums by increasing the current year's per mile and per minute amounts and per trip minimums by the rate of increase of the state minimum wage, calculated to the nearest cent.

The adjusted amount calculated under this section takes effect on the following January 1st.

(c) For shared rides, the per trip minimums in (a)(i) and (ii) of this subsection shall apply only to the entirety of the shared ride, and not on the basis of the individual passenger's trip within the shared ride.

(5)(a) For the purposes of this section, a dispatched trip includes:

(i) A dispatched trip in which the driver transports the passenger to the passenger drop-off location;

(ii) A dispatched trip canceled after two minutes by a passenger or the transportation network company unless cancellation is due to driver conduct, or no cancellation fee is charged to the passenger;

(iii) A dispatched trip that is canceled by the driver for good cause consistent with company policy;

and (iv) A dispatched trip where the passenger does not appear at the passenger pick-up location within five minutes.

(b) A transportation network company may exclude time and miles if doing so is reasonably necessary to remedy or prevent fraudulent use of the transportation network company's online-enabled application or platform.

(6)(a) A transportation network company shall remit to drivers all tips.

(b) AmountsIncentives chargedmay tocount atowards passengerthe andminimum remittedcompensation torequirements theonly driver for tolls,the fees,particular or surcharges incurred by a driver during a trip must not be included in calculatingwhich compensationthe forincentives purposesare ofearned. subsection (4) of this section.

(c)(i)(c) BeginningTolls, Januaryfees, 1,or 2023,surcharges exceptincurred as required by law, a transportation network company may only deduct compensation when the driver expresslyduring authorizesa thetrip deductionmust innot writingimpact andminimum doescompensation sorequirements. in advance for a lawful purpose.

(d) A transportation network company may only deduct compensation when the driver expressly authorizes the deduction in writing and p.

4 HB 2076 does so in advance for a lawful purpose.

(ii)Neither Nothingthe intransportation thisnetwork sectioncompany shallnor prohibitany aperson acting in the interest of the transportation network company frommay deductingderive compensationany asfinancial requiredprofit by state or federalbenefit lawfrom orany asof directedthe bydeductions aunder courtthis order.section.

p.For the purposes of this section, reasonable interest charged by the transportation network company or any person acting in the interest of a transportation network company, for a loan or credit extended to the driver, is not considered to be of financial benefit to the transportation network company or person acting in the interest of a transportation network company.

6(6) ESHBA 2076 (iii) Neither the transportation network company normay anynot personimpose actingvehicle age limits in theany interestproduct ofclasses thethat transportationare networkmore companyrestrictive maythan derivelimits anyprovided financialby profitstate or benefitlocal fromlaw. any of the deductions under this section.

For(7)(a) theA purposestransportation network company shall provide each driver with a written notice of rights established by this section:section in a form and manner sufficient to inform drivers of their rights under this section.

(A) Reasonable interest charged by the transportation network company or any person acting in the interest of a transportation network company, for a loan or credit extended to the driver, is not considered to be of financial benefit to the transportation network company or person acting in the interest of a transportation network company;

and (B) A deduction will be considered for financial profit or benefit only if it results in a gain over and above the fair market value of the goods or services for which the deduction was made.

(7)(a) Beginning January 1, 2023, a transportation network company shall provide each driver with a written notice of rights established by this section in a form and manner sufficient to inform drivers of their rights under this section.

(i) The right to the applicable per minute rate and per mile rate or per trip rate guaranteed by this section;

and (iii) The right to seek legal action or file a complaint with the department for violation of the requirements of this section, including a transportation network company's failure to pay the minimum per minute rate or per mile rate or per trip rate, or a transportation network company's retaliation against a driver or other person for engaging in an activity protected by this section.

The notice of rights shall be made available to the driver via smartphone application or online web portal, in English and any language that the fivetransportation mostnetwork commoncompany foreignknows languagesor spokenhas inreason thisto state.know is the primary language of the driver.

(8) BeginningWithin December 31, 2022, within 24 hours of completion of each dispatchedtrip trip,completion, a transportation network company must transmit an electronic receipt to the driver that contains the following information for each unique trip, or portion of a unique trip, covered by this section:

75 ESHBHB 2076 (b) The total mileage driven during passenger platform time;

(c) RateThe ortotal ratesmileage ofdriven pay,during including but not limited to the rate per minute, rate per mile, percentage of passenger fare,pick-up andtime; any applicable price multiplier or variable pricing policy in effect for the trip;

(d) TipPassenger compensation;fare;

(e) GrossRate payment;or rates of pay, including but not limited to the rate per minute, rate per mile, percentage of passenger fare, and any applicable price multiplier or variable pricing policy in effect for the trip;

(f) NetTip paymentcompensation; after deductions, fees, tolls, surcharges, lease fees, or other charges;

and (g) ItemizedGross deductionspayment; or fees, including any toll, surcharge, commission, lease fees, and other charges.

(9)(h) BeginningNet Januarypayment 1,after 2023,deductions, afees, transportationtolls, networksurcharges, companylease shallfees, make driver per trip receipts available in a downloadable format, such as a comma-separated values file or PDFother file,charges; via smartphone application or online web portal for a period of two years from the date the transportation network company provided the receipt to the driver.

(10)(i) BeginningItemized Januarydeductions 1, 2023, on a weekly basis, the transportation network company shall provide written notice to the driver that contains the following information for trips, or afees, portionincluding ofany atoll, trip,surcharge, thatcommission, islease coveredfees, by this section and whichother occurredcharges; in the prior week:

and (j) Pursuant to rules issued by the department, other information that is material and necessary to effectuate the terms of this section.

(9) A transportation network company shall make driver per-trip receipts available in a downloadable format, such as a comma- separated values file, via smartphone application or online web portal for a period of three years from the date the transportation network company provided the receipt to the driver.

(10) On a weekly basis, the transportation network company shall provide written notice to the driver that contains the following information for trips, or a portion of a trip, that is covered by this section and which occurred in the prior week:

(c) TheTotal driver'samount totalof tippassenger compensation;fares;

(d) The driver's grosstotal payment,tip itemizedcompensation; by:

(e) The driver's gross compensation, itemized by:

(e)(f) The driver's net payment after deductions, fees, tolls, surcharges, lease fees, or other charges;

and(g) (f) Itemized deductions or fees, including all tolls, surcharges, commissions, lease fees, and other charges, from the driver's payment.payment;

(11)and Beginningp. January 1, 2023, within 24 hours of a trip's completion, a transportation network company must transmit an electronic receipt to the passenger, for on trip time, on behalf of the driver that lists:

p.6 HB 2076 (h) Pursuant to rules issued by the department, other information that is material and necessary to effectuate the terms of this section.

8(11) ESHBWithin 207624 (a)hours Theof datea andtrip's timecompletion, a transportation network company must transmit an electronic receipt to the passenger, for on trip time, on behalf of the trip;driver that lists:

(a) The date and time of the trip;

A transportation network company is authorized to indicate the location with greater specificity, such as with a street address or intersection, at its discretion;discretion, provided the location is sufficiently anonymized to protect driver and passenger safety and privacy;

and (f) TheCompensation totalpaid to the driver with passenger-paid tips.tips separately itemized;

(12)(a)and Beginning(g) JulyPursuant 1,to 2024,rules transportationissued networkby companiesthe shalldirector, collectother andinformation remitthat ais $0.15material perand tripnecessary fee to effectuate the driverterms resource center fund, created in section 2 of this act,section. for the driver resource center to support the driver community.

The(12)(a) remittanceBeginning under90 days from the effective date of this subsectionsection, istransportation anetwork pass-throughcompanies shall remit $0.15 cents of every passenger faresfare andto shallthe notdriver beresource consideredcenter afund, transportationcreated networkin company'ssection funding2 of this act, for the driver resource center.center to support the driver community.

The remittance under this subsection is a pass- through of passenger fares and is not considered a transportation network company's funding of the driver resource center.

(b) Beginning September 30, 2024,2022, and on each following September 30th, the department shall calculate an adjusted per trip feeremittance by adjusting the current amount by the rate of inflation.

The adjusted amounts must be calculated to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the 12 months prior to each Septemberp. 1st as calculated by the United States department of labor.

7 HB 2076 September 1st as calculated by the United States department of labor.

(13) NoTransportation later than one year after the effective date of this section, transportation network companies shall provide an opportunity for drivers to make voluntary perper-trip trip earnings deduction contributions to the driver resource center, provided that 100 or more drivers working for transportation network companies covered under this section have authorized such a deduction to the driver resource center, and subject to the following:

(a) A driver must expressly authorize the deduction in writing.writing to the transportation network company.

Written authorization must include, at a minimum, sufficient p.information to identify the driver and the driver's desired per-trip deduction amount.

9These ESHBdeductions 2076may informationreduce tothe identifydriver's theper-trip driverearnings andbelow the driver'sminimums desiredset perforth tripin deductionthis amount.section.

These deductions may reduce the driver's per trip earnings below the minimums set forth in this section.

(14)(14)(a) EachIf the transportation network company shalldoes submitnot tocollect theand fund,remit withthe itssurcharges remittancerequired under subsection (12) of this section,section aof reportevery detailingfare theand, numberwhen ofapplicable, tripsunder insubsection the(13) previousof quarterthis andsection, the totaldepartment amountshall ofnotify the surchargedepartment chargedof tolicensing. customers.

(b) Each transportation network company shall submit to the fund, with its remittance, a report detailing the number of trips in the p.

8 HB 2076 previous month and the total amount of the surcharge charged to customers.

Failure to remit payments by the deadlines is deemed a delinquency and the transportation network company is subject to penalties and interest providedas infollows: section 4 of this act.

(15)(a)(i) The staterate expresslyof intendsinterest applicable to displacedelinquent competitionpayment withobligations regulationunder allowingthis asection transportationis network12 company,percent atper itsannum, ownor volition, to enter into an agreement with the drivermaximum resourcerate centerpermitted regardingunder aRCW driver19.52.020. account deactivation appeals process for eligible account deactivations.

It(ii) isAny themonetary policypenalty ofimposed theunder statethis tosection promotemust abe fairretained appealsby processthe relateddepartment toand eligiblebe accountused deactivationsto thatdefray supports the rightscosts of driversadministering andthis transportationsection. network companies and provides fair processes related to eligible account deactivations.

A transportation network company that is found, after a hearing held pursuant to chapter 34.12 RCW, to be in default to the fund for assessments owed under this section is liable for the amount of the assessments determined to be due and outstanding, plus interest on the amounts owed and any monetary penalties imposed under this section.

(iii) If a transportation network company fails to pay any assessments or penalties awarded under this section within 20 days of issuance of a valid order to pay, the transportation network company is liable for all amounts wrongfully withheld, plus interest as provided for in this subsection, and reasonable attorneys' fees and costs.

(15)(a) The state expressly intends to displace competition with regulation allowing a transportation network company and its drivers collectively to enter agreements with the driver resource center.

The state policy is to promote the rights of drivers and transportation network companies and provide fair processes related to driver account activation.

p.A transportation network company may, at its own volition, enter into an agreement with the driver resource center regarding the driver account deactivation process.

10 ESHB 2076 (i) "Eligible account deactivation" means one or more of the following actions with respect to an individual driver that is implemented by a transportation network company:

(A) Blocking or restricting access to the transportation network company driver platform for three or more consecutive days;

or (B) Changing a driver's account status from eligible to provide transportation network company services to ineligible for three or more consecutive days.

(ii) An eligible account deactivation does not include any change in a driver's access or account status that is:

(A) Related to an allegation of discrimination, harassment, including sexual harassment or harassment due to someone's membership in a protected class, or physical or sexual assault, or willful or knowing commitment of fraud;

(B) Related to an allegation that the driver was under the influence of drugs or alcohol while a related active investigation that takes no longer than 10 business days is under way;

or (C) Any other categories the transportation network company and the driver resource center may agree to as part of the agreement under this subsection.

(iii) A transportation network company shall enter into an agreement with the driver resource center regarding the driver account deactivation appeals process for eligible account deactivations.

The department may approve an agreement only if the agreement contains the provisionsfollowing: in (a)(iv) of this subsection.

(iv)(i) The agreement must provide andue appeals process for drivers whosewho accountface has been subject to an eligible account deactivation.

TheDue appeals process must include the following protections:

(A) Opportunity for a driver representative to support adrivers driver, upon the driver's request, throughout the account deactivation appealsprocess; process for eligible account deactivations;

(B)p. Notification, as required by (d) of this subsection, to drivers of their right to representation by the driver resource center at the time of the eligible account deactivation;

(C)9 WithinHB 302076 calendar(B) daysAn ofagreed-upon ajust request,cause furnishingstandard tofor theupholding driverdeactivations; resource center an explanation and information the transportation network company may have relied upon in making the deactivation decision, excluding confidential, proprietary, or otherwise privileged communications, provided that personal p.

11(C) ESHBWithin 207630 identifyingcalendar days of a request, furnishing to the driver and driver representative information and confidentialevidence the transportation network company relied upon in making the deactivation decision, provided that personal identifying information is redacted to address reasonable privacy and confidentiality concerns;

(D) A good faith, substantive informal resolution process that is committed to efficient resolution of deactivation conflicts regarding eligible account deactivations within 30 days of the transportation network company being notified thatof the driverconflict; contests the explanation offered by the company;

(E) A formal process that includes a just cause standard, with deadlines for adjudication ofby ana appealpanel composed of anpeer eligibledrivers accountmutually deactivationselected by athe paneltransportation thatnetwork includescompany aand mutuallythe agreed-upondriver neutralresource thirdcenter partyand withadministered experienceby ina disputeneutral resolution.third-party moderator.

The panel has the authority to make bindingbinding, decisions within the confines of the law and make-whole monetary awards, including back pay, based on an agreed-upon formula for cases not resolved during the informal process;

and (F) Agreement by the transportation network company to use the formal process set forth in this subsection to resolve disputes over eligibledeactivations account deactivation appeals as an alternative to privateindividual arbitration with regard to such a dispute, should the driver and transportation network company so choose;

and (G)(ii) AgreementAn byongoing theprocess transportation network company that, for eligibledrivers account deactivations in which the driver or transportation network company elect private arbitration in lieu of the formal process outlined in (a)(iv)(E) of this subsection (15), the transportation network company shall offer the driver the opportunity to have thea eligiblevoice deactivationin adjudicatedworking underconditions, theincluding justpolicy causechanges standardthat outlinedimpact intheir (a)(iv)(E)work. of this subsection.

(b) AAny transportation network company that enters into an agreement withunder thethis driversection resourcemust centerbe shallsubmitted reachto agreement through the followingdepartment steps:for approval.

(i)(A)The Fordepartment ashall transportationreview network company operating a digital network in the stateagreement ofto Washingtonensure asthat ofits thecontent effectiveis dateconsistent ofwith this section,subsection the driver resource center and transportation network company must make good faith efforts to reach an agreement within 120 days of an organization being selected as the driverpublic resourcepolicy centergoals underset sectionforth 2in of this act.subsection.

(B)The Fordepartment ashall transportationconsider networkin companyits whoreview beginsboth operatingqualitative aand digitalquantitative networkeffects inof the stateagreement, ofhow Washingtonthe afteragreement ancomports organizationwith has been selected as the driverstate resourcepolicies centerset underforth sectionin 2 of this act,section, theand driverany resourceavailable centerbusiness data and transportationeconomic networkstudies. company p.

12In ESHBconducting 2076a mustreview, makethe goodrecord faithshall effortsnot tobe reachlimited anto agreementthe withinsubmissions 120 days of the transportationparties networknor companyto beginningthe operationterms of a digital network in the stateproposed ofagreement. Washington.

(ii)The Ifdepartment shall have the driverright resourceto centergather and transportationconsider networkany companynecessary cannotevidence, reachincluding anby agreement,conducting thenpublic theyhearings areand requiredrequesting toadditional submitinformation issuesfrom ofthe disputeparties. before a jointly agreed-upon mediator.

(iii) After mediation lasting no more than two months has been exhausted and no resolution has been reached, then the parties will proceed to binding arbitration before a panel of arbitrators consisting of one arbitrator selected by the driver resource center, one arbitrator selected by the transportation network company, and a third arbitrator selected by the other two.

If the two selected arbitrators cannot agree to the third arbitrator within 10 days, then the third arbitrator shall be determined from a list of seven arbitrators with experience in labor disputes or interest arbitration designated by the American arbitration association.

A coin toss shall determine which side strikes the first name.

Thereafter the other side shall strike a name.

The process will continue until only one name remains, who shall be the third arbitrator.

Alternatively, the driver resource center and the transportation network company may agree to a single arbitrator.

(iv) The arbitrators must submit their decision, based on majority rule, within 60 days of the panel or arbitrator being chosen.

(v) The decision of the majority of arbitrators is final and binding and will then be submitted to the director of the department for final approval.

(c) In reviewing any agreement between a transportation network company and the driver resource center, under (a) of this subsection, the department shall review the agreement to ensure that its content is consistent with this subsection and the public policy goals set forth in this subsection.

The department shall consider in its review both qualitative and quantitative effects of the agreement and how the agreement comports with the state policies set forth in this section.

In conducting a review, the record shall not be limited to the submissions of the parties nor to the terms of the proposed agreement and the department shall have the right to conduct public hearings and request additional information from the parties, provided that such information:

(i) Is relevant for determining whether the agreement complies with this subsection;

and (ii) does p.

13 ESHB 2076 not contain either parties' confidential, proprietary, or privileged information, or any individual's personal identifying information from the parties.

If the department rejects all or part of an agreement, it shall set forth its reasoning in writing and shall suggest ways the parties may remedy the failures.

Absent good cause,p. the department shall issue a written determination regarding its approval or rejection within 60 days of submission of the agreement.

(d)(i)10 ForHB any2076 accountcause, deactivation, the transportationdepartment network company shall provideissue notificationa towritten thedetermination driver,regarding atits theapproval, timerejection, ofor deactivation,any thatsuggestions in the driverevent mayof haverejection theof rightall toor representationpart byof the driveragreement, resourcewithin center30 todays appealof thesubmission accountof deactivation.the agreement.

(ii) A transportation network company must provide any driver whose account is subject to an account deactivation between the effective date of this section and the effective date of the agreement the contact information of the driver resource center and notification that the driver may have the right to appeal the account deactivation with representation by the driver resource center.

(1) The legislaturedriver recognizesresource thatcenter providingfund educationis andcreated outreachin tothe driverscustody regardingof their rights and obligations furthers the state'sstate interesttreasurer. in having a vibrant knowledgeable work force and safe and satisfied consumers.

The(2) legislatureAll thereforemoneys intendsreceived tofrom createthe aremittance wayin ofsection providing1 education,of outreach,this andact supportmust tobe workersdeposited who,into because of the naturefund. of their work, do not have access to such support through traditional avenues.

(2) The driver resource center fund is created in the custody of the state treasurer.

All moneys received from the remittance in section 1(12) of this act must be deposited into the fund.

p.(a) Services provided by the driver resource center under contract, including services, representation, and other support to drivers.

14 ESHB 2076 (a) Services provided by the driver resource center, as defined in section 1 of this act, to drivers and administrative costs of providing such support.

(5)PART WithinII fourPAID monthsSICK ofLEAVE theSec. effective date of this section, the director of the department or the director's designee shall, through a competitive process, select and contract with a qualified nonprofit organization to be the driver resource center.

NEW SECTION.

Sec.

A new section is added to chapter 49.46 RCW to read as follows:

(1)(a) If a driver files a complaint with the department alleging that a transportation network company failed to provide any compensation amounts due to the driver under section 1 of this act, the department shall investigate the complaint under this section.

Unless otherwise resolved, the department shall issue either a citation and notice of assessment or a determination of compliance no later than 60 days after the date on which the department received the compensation-related complaint.

The department may extend the time period by providing advance written notice to the driver and the transportation network company setting forth good cause for an extension of the time period and specifying the duration of the extension.

(b) The department may not investigate any alleged compensation- related violation that occurred more than three years before the date that the driver filed the compensation-related complaint.

(c) The department shall send the citation and notice of assessment or the determination of compliance to both the transportation network company and the driver by service of process or using a method by which the mailing can be tracked or the delivery can be confirmed to their last known addresses.

A transportation network company may designate a mailing address of record for service, and additionally may provide an email address to which the department shall direct electronic courtesy copies of mailed correspondence, if such email address is provided.

p.

15 ESHB 2076 (2) If the department determines that a transportation network company has violated a compensation requirement in section 1 of this act and issues to the transportation network company a citation and notice of assessment, the department may order the transportation network company to pay drivers all compensation owed, including interest of one percent per month on all compensation owed, to the driver.

The compensation and interest owed must be calculated from the first date compensation was owed to the driver, except that the department may not order the transportation network company to pay any compensation and interest that were owed more than three years before the date the complaint was filed with the department.

(3) If the department determines that the compensation-related violation was a willful violation, and the transportation network company fails to take corrective action, the department also may order the transportation network company to pay the department a civil penalty as specified in (a) of this subsection.

(a) A civil penalty for a willful violation shall be not less than $1,000 or an amount equal to 10 percent of the total amount of unpaid compensation per claimant, whichever is greater.

The maximum civil penalty for a willful violation of requirements in section 1 of this act shall be $20,000 per claimant.

(b) The department may not assess a civil penalty if the transportation network company reasonably relied on:

(i) A rule related to any requirements in this section;

(ii) a written order, ruling, approval, opinion, advice, determination, or interpretation of the director;

or (iii) an interpretive or administrative policy issued by the department and filed with the office of the code reviser.

In accordance with the department's retention schedule obligations under chapter 40.14 RCW, the department shall maintain a complete and accurate record of all written orders, rulings, approvals, opinions, advice, determinations, and interpretations for purposes of determining whether a transportation network company is immune from civil penalties under this subsection (3)(b).

(c) The department shall waive any civil penalty assessed against a transportation network company under this section if the transportation network company is not a repeat willful violator, and the director determines that the transportation network company has provided payment to the driver of all compensation that the department determined that the transportation network company owed to the driver, including interest, within 30 days of the transportation p.

16 ESHB 2076 network company's receipt of the citation and notice of assessment from the department.

(d) The department may waive or reduce at any time a civil penalty assessed under this section if the director determines that the transportation network company paid all compensation and interest owed to a driver.

(e) The department shall deposit civil penalties paid under this section in the supplemental pension fund established under RCW 51.44.033.

(4) Upon payment by a transportation network company, and acceptance by a driver, of all compensation and interest assessed by the department in a citation and notice of assessment issued to the transportation network company, the fact of such payment by the transportation network company, and of such acceptance by the driver, shall:

(a) Constitute a full and complete satisfaction by the transportation network company of all specific requirements of section 1 of this act addressed in the citation and notice of assessment;

and (b) bar the driver from initiating or pursuing any court action or other judicial or administrative proceeding, including arbitration, based on the specific requirements addressed in the citation and notice of assessment.

The citation and notice of assessment shall include a notification and summary of the specific requirements of section 1 of this act.

(5) The applicable statute of limitations for civil actions is tolled during the department's investigation of a driver's complaint against a transportation network company.

For the purposes of this subsection, the department's investigation begins on the date the driver files the complaint with the department and ends when:

(a) The complaint is finally determined through a final and binding citation and notice of assessment or determination of compliance;

or (b) the department notifies the transportation network company and the driver in writing that the complaint has been otherwise resolved or that the driver has elected to terminate the department's administrative action under subsection (12) of this section.

(6) A person, firm, or corporation aggrieved by a citation and notice of assessment or a determination of compliance issued by the department under this section or the assessment of a civil penalty due to a determination of status as a repeat willful violator may appeal the citation and notice of assessment, the determination of compliance, or the assessment of a civil penalty to the director by p.

17 ESHB 2076 filing a notice of appeal with the director within 30 days of the department's service, as provided in subsection (1) of this section, on the aggrieved party of the citation and notice of assessment, the determination of compliance, or the assessment of a civil penalty.

A citation and notice of assessment, a determination of compliance, or an assessment of a civil penalty not appealed within 30 days is final and binding, and not subject to further appeal.

(7) A notice of appeal filed with the director under this section shall stay the effectiveness of the citation and notice of assessment, the determination of compliance, or the assessment of a civil penalty pending final review of the appeal by the director as provided for in chapter 34.05 RCW.

(8) Upon receipt of a notice of appeal, the director shall assign the hearing to an administrative law judge of the office of administrative hearings to conduct the hearing and issue an initial order.

The hearing and review procedures shall be conducted in accordance with chapter 34.05 RCW, and the standard of review by the administrative law judge of an appealed citation and notice of assessment, an appealed determination of compliance, or an appealed assessment of a civil penalty shall be de novo.

Any party who seeks to challenge an initial order shall file a petition for administrative review with the director within 30 days after service of the initial order.

The director shall conduct administrative review in accordance with chapter 34.05 RCW.

(9) The director shall issue all final orders after appeal of the initial order.

The final order of the director is subject to judicial review in accordance with chapter 34.05 RCW.

(10) Orders that are not appealed within the time period specified in this section and chapter 34.05 RCW are final and binding, and not subject to further appeal.

(11) Absent good cause, a transportation network company that fails to allow adequate inspection of records in an investigation by the department under this chapter within a reasonable time period may not use such records in any appeal under this section to challenge the correctness of any determination by the department of wages owed or penalties assessed.

(12) A driver who has filed a complaint under this section with the department may elect to terminate the department's administrative action, thereby preserving any private right of action, if any exists, by providing written notice to the department within 10 p.

18 ESHB 2076 business days after the driver's receipt of the department's citation and notice of assessment.

(13) If the driver elects to terminate the department's administrative action:

(a) The department shall immediately discontinue its action against the transportation network company;

(b) the department shall vacate a citation and notice of assessment already issued by the department to the transportation network company;

and (c) the citation and notice of assessment, and any related findings of fact or conclusions of law by the department, and any payment or offer of payment by the transportation network company of the compensation, including interest, assessed by the department in the citation and notice of assessment, shall not be admissible in any court action or other judicial or administrative proceeding.

(14) Nothing in this section shall be construed to limit or affect:

(a) The right of any driver to pursue any judicial, administrative, or other action available with respect to a transportation network company;

(b) the right of the department to pursue any judicial, administrative, or other action available with respect to a driver that is identified as a result of a complaint for a violation of section 1 of this act;

or (c) the right of the department to pursue any judicial, administrative, or other action available with respect to a transportation network company in the absence of a complaint for a violation of section 1 of this act.

For purposes of this subsection, "driver" means a driver other than a driver who has filed a complaint with the department and who thereafter has elected to terminate the department's administrative action as provided in subsection (1) of this section.

(15) After a final order is issued under this section, and served as provided in subsection (1) of this section, if a transportation network company defaults in the payment of:

(a) Any compensation determined by the department to be owed to a driver, including interest;

or (b) any civil penalty ordered by the department under this section, the director may file with the clerk of any county within the state a warrant in the amount of the payment plus any filing fees.

The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the transportation network company mentioned in the warrant, the amount of payment due plus any filing fees, and the date p.

19 ESHB 2076 when the warrant was filed.

The aggregate amount of the warrant as docketed becomes a lien upon the title to, and interest in, all real and personal property of the transportation network company against whom the warrant is issued, the same as a judgment in a civil case docketed with the superior court clerk.

The sheriff shall proceed upon the warrant in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in a court of competent jurisdiction.

The warrant so docketed is sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied.

The clerk of the court is entitled to a filing fee which will be added to the amount of the warrant.

A copy of the warrant shall be served on the transportation network company, as provided in subsection (1) of this section, within three days of filing with the clerk.

(16)(a) The director may issue to any person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or any agency of the state, a notice and order to withhold and deliver property of any kind when he or she has reason to believe that there is in the possession of the person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property that is or will become due, owing, or belonging to a transportation network company upon whom a notice of assessment has been served by the department for payments or civil penalties due to the department.

The effect of a notice and order is continuous from the date the notice and order is first made until the liability out of which the notice and order arose is satisfied or becomes unenforceable because of lapse of time.

The department shall release the notice and order when the liability out of which the notice and order arose is satisfied or becomes unenforceable by reason of lapse of time and shall notify the person against whom the notice and order was made that the notice and order has been released.

(b) The notice and order to withhold and deliver must be served by the sheriff of the county or by the sheriff's deputy, by certified mail, return receipt requested, or by the director.

A person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within 20 p.

20 ESHB 2076 days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order.

Upon service of the notice and order, if the party served possesses any property that may be subject to the claim of the department, the party shall promptly deliver the property to the director.

The director shall hold the property in trust for application on the transportation network company's indebtedness to the department, or for return without interest, in accordance with a final determination of a petition for review.

In the alternative, the party shall furnish a good and sufficient surety bond satisfactory to the director conditioned upon final determination of liability.

If a party served and named in the notice fails to answer the notice within the time prescribed in this section, the court may render judgment by default against the party for the full amount claimed by the director in the notice, together with costs.

If a notice is served upon a transportation network company and the property subject to it is compensation, the transportation network company may assert in the answer all exemptions provided for by chapter 6.27 RCW to which the compensation earner is entitled.

(c) As an alternative to the methods of service described in this section, the department may electronically serve a financial institution with a notice and order to withhold and deliver by providing a list of its outstanding warrants, except those for which a payment agreement is in good standing, to the department of revenue.

The department of revenue may include the warrants provided by the department in a notice and order to withhold and deliver served under RCW 82.32.235(3).

A financial institution that is served with a notice and order to withhold and deliver under this subsection (16)(c) must answer the notice within the time period applicable to service under RCW 82.32.235(3).

The department and the department of revenue may adopt rules to implement this subsection (16)(c).

(17)(a) In addition to the procedure for collection of compensation owed, including interest, and civil penalties as set forth in this section, the department may recover compensation owed, including interest, and civil penalties assessed under RCW 49.48.083 in a civil action brought in a court of competent jurisdiction of the county where the violation is alleged to have occurred.

(b) The department may use the procedures under this section to foreclose compensation liens established under chapter 60.90 RCW.

When the department is foreclosing on a compensation lien, the date p.

21 ESHB 2076 the compensation lien was originally filed shall be the date by which priority is determined, regardless of the date the warrant is filed under this section.

(18) Whenever any transportation network company quits business, sells out, exchanges, or otherwise disposes of the transportation network company's business or stock of goods, any person who becomes a successor to the business becomes liable for the full amount of any outstanding citation and notice of assessment or penalty against the transportation network company's business under this chapter if, at the time of the conveyance of the business, the successor has:

(a) Actual knowledge of the fact and amount of the outstanding citation and notice of assessment;

or (b) a prompt, reasonable, and effective means of accessing and verifying the fact and amount of the outstanding citation and notice of assessment from the department.

If the citation and notice of assessment or penalty is not paid in full by the transportation network company within 10 days of the date of the sale, exchange, or disposal, the successor is liable for the payment of the full amount of the citation and notice of assessment or penalty, and payment thereof by the successor must, to the extent thereof, be deemed a payment upon the purchase price.

If the payment is greater in amount than the purchase price, the amount of the difference becomes a debt due the successor from the transportation network company.

(19) This section does not affect other collection remedies that are otherwise provided by law.

NEW SECTION.

Sec.

4.

A new section is added to chapter 49.46 RCW to read as follows:

(1) If a driver files a complaint with the department alleging a violation of any noncompensation requirement of section 1 (7) through (10) and (12) through (14) of this act, the department shall investigate the complaint under this section.

(a) The department may not investigate any such alleged violation that occurred more than three years before the date that the driver filed the complaint or prior to this law going into effect.

(b) If a driver files a timely complaint with the department, the department will investigate the complaint and issue either a citation assessing a civil penalty or a closure letter within 60 days after the date on which the department received the complaint, unless the complaint is otherwise resolved.

The department may extend the period p.

22 ESHB 2076 by providing advance written notice to the driver and the transportation network company setting forth good cause for an extension of the period, and specifying the duration of the extension.

(c) The department shall send notice of either a citation and notice of assessment or a citation assessing a civil penalty or the closure letter to both the transportation network company and the driver by service of process or by United States mail using a method by which delivery of such written notice to the transportation network company can be tracked and confirmed.

A transportation network company may designate a mailing address of record for service, and additionally may provide an email address to which the department shall direct electronic courtesy copies of mailed correspondence, if such email address is provided.

(2) If the department's investigation finds that the driver's allegation cannot be substantiated, the department shall issue a closure letter to the driver and the transportation network company detailing such finding.

(3) If the department determines that the violation was a willful violation, and the transportation network company fails to take corrective action, the department may order the transportation network company to pay the department a civil penalty as specified in (a) of this subsection.

(a) A citation assessing a civil penalty for a willful violation will be $1,000 for each willful violation.

For a repeat willful violator, the citation assessing a civil penalty will not be less than $2,000 for each repeat willful violation per claimant, but no greater than $20,000 for each repeat willful violation per claimant.

(b) The department may not issue a citation assessing a civil penalty if the transportation network company reasonably relied on:

(i) A written order, ruling, approval, opinion, advice, determination, or interpretation of the director;

or (ii) an interpretive or administrative policy issued by the department and filed with the office of the code reviser.

In accordance with the department's retention schedule obligations under chapter 40.14 RCW, the department shall maintain a complete and accurate record of all written orders, rulings, approvals, opinions, advice, determinations, and interpretations for purposes of determining whether a transportation network company is immune from civil penalties under this subsection (3)(b).

p.

23 ESHB 2076 (c) The department may, at any time, waive or reduce a civil penalty assessed under this section if the director determines that the transportation network company has taken corrective action to resolve the violation.

(d) The department shall deposit civil penalties paid under this section in the supplemental pension fund established under RCW 51.44.033.

(e) If the department determines that a transportation network company has violated section 1(12) of this act, and issues to the transportation network company a citation and notice of assessment, the department may order the transportation network company to pay all owed remittance payments as required under section 1(12) of this act.

The department shall deposit all owed remittance payments in the driver resource center fund.

(4) For purposes of this section, the following definitions apply:

(a) "Repeat willful violator" means any transportation network company that has been the subject of a final and binding citation for a willful violation of one or more rights under this chapter and all applicable rules, within three years of the date of issuance of the most recent citation for a willful violation of one or more such rights.

(b) "Willful" means a knowing and intentional action that is neither accidental nor the result of a bona fide dispute.

(5) A person, firm, or corporation aggrieved by a citation assessing a civil penalty issued by the department under this section may appeal the citation assessing a civil penalty to the director by filing a notice of appeal with the director within 30 days of the department's issuance of the citation assessing a civil penalty.

A citation assessing a civil penalty not appealed within 30 days is final and binding, and not subject to further appeal.

(6) A notice of appeal filed with the director under this section stays the effectiveness of the citation assessing a civil penalty pending final review of the appeal by the director as provided for in chapter 34.05 RCW.

(7) Upon receipt of a notice of appeal, the director shall assign the hearing to an administrative law judge of the office of administrative hearings to conduct the hearing and issue an initial order.

The hearing and review procedures must be conducted in accordance with chapter 34.05 RCW, and the standard of review by the p.

24 ESHB 2076 administrative law judge of an appealed citation assessing a civil penalty must be de novo.

Any party who seeks to challenge an initial order shall file a petition for administrative review with the director within 30 days after service of the initial order.

The director shall conduct administrative review in accordance with chapter 34.05 RCW.

(8) The director shall issue all final orders after appeal of the initial order.

The final order of the director is subject to judicial review in accordance with chapter 34.05 RCW.

(9) Orders that are not appealed within the period specified in this section and chapter 34.05 RCW are final and binding, and not subject to further appeal.

(10) Absent good cause, a transportation network company that fails to allow adequate inspection of records in an investigation by the department under this section within a reasonable time period may not use such records in any appeal under such rules to challenge the correctness of any determination by the department of penalties assessed.

(11) Collections of unpaid citations assessing civil penalties will be handled pursuant to the procedures outlined in RCW 49.48.086.

(12) If the department determines that a transportation network company has violated the requirements in section 1(12) of this act to collect and remit the established fee, and issues to the transportation network company a citation and notice of assessment, the department may order the transportation network company to pay all owed remittance payments as required under section 1(12) of this act.

The department shall deposit all unpaid remittance amounts into the driver resource center fund established in section 2 of this act.

NEW SECTION.

Sec.

5.

A new section is added to chapter 49.46 RCW to read as follows:

(1) It is unlawful for a transportation network company to interfere with, restrain, or deny the exercise of any driver right provided under or in connection with section 1 of this act and RCW 49.46.210(5).

This means a transportation network company may not use a driver's exercise of any of the rights provided under section 1 of this act and RCW 49.46.210(5) as a factor in any action that adversely affects the driver's use of the transportation network.

(2) It is unlawful for a transportation network company to adopt or enforce any policy that counts the use of earned paid sick time p.

25 ESHB 2076 for a purpose authorized under RCW 49.46.210(1) (b) and (c) as time off the platform that may lead to or result in temporary or permanent deactivation by the transportation network company against the driver.

(3) It is unlawful for a transportation network company to take any adverse action against a driver because the driver has exercised their rights provided under section 1 of this act and RCW 49.46.210(5).

Such rights include, but are not limited to:

Filing an action, or instituting or causing to be instituted any proceeding under or related to section 1 of this act and RCW 49.46.210(5), or testifying or intending to testify in any such proceeding related to any rights provided under section 1 of this act and RCW 49.46.210(5).

(4) Adverse action means any action taken or threatened by a transportation network company against a driver for the driver's exercise of rights under section 1 of this act and RCW 49.46.210(5).

(5) A driver who believes that he or she was subject to retaliation by a transportation network company for the exercise of any driver right under section 1 of this act and RCW 49.46.210(5) may file a complaint with the department within 180 days of the alleged retaliatory action.

The department may, at its discretion, extend the 180-day period on recognized equitable principles or because of extenuating circumstances beyond the control of the department.

The department may extend the 180-day period when there is a preponderance of evidence that the transportation network company has concealed or misled the driver regarding the alleged retaliatory action.

(6) If a driver files a timely complaint with the department alleging retaliation, the department shall investigate the complaint and issue either a citation and notice of assessment or a determination of compliance within 90 days after the date on which the department received the complaint, unless the complaint is otherwise resolved.

The department may extend the period by providing advance written notice to the driver and the transportation network company setting forth good cause for an extension of the period, and specifying the duration of the extension.

(7) The department may consider a complaint to be otherwise resolved when the driver and the transportation network company reach a mutual agreement to remedy any retaliatory action, or the driver voluntarily and on the driver's own initiative withdraws the complaint.

p.

26 ESHB 2076 (8) If the department's investigation finds that the driver's allegation of retaliation cannot be substantiated, the department shall issue a determination of compliance to the driver and the transportation network company detailing such finding.

(9) If the department's investigation finds that the transportation network company retaliated against the driver, and the complaint is not otherwise resolved, the department may, at its discretion, notify the transportation network company that the department intends to issue a citation and notice of assessment, and may provide up to 30 days after the date of such notification for the transportation network company to take corrective action to remedy the retaliatory action.

If the complaint is not otherwise resolved, then the department shall issue a citation and notice of assessment.

The department's citation and notice of assessment may:

(a) Order the transportation network company to make payable to the driver earnings that the driver did not receive due to the transportation network company's retaliatory action, including interest of one percent per month on all earnings owed.

The earnings and interest owed will be calculated from the first date earnings were owed to the driver;

(b) Order the transportation network company to restore the contract of the driver, unless otherwise prohibited by law;

(c) Order the transportation network company to cease using any policy that counts the use of earned paid sick time as time off the platform or an adverse action against the driver;

(d) For the first violation, order the transportation network company to pay the department a civil penalty established in subsection (15) of this section;

and (e) For a repeat violation, order the transportation network company to pay the department up to double the civil penalty established in subsection (15) of this section.

(10) The department shall send the citation and notice of assessment or determination of compliance to both the transportation network company and driver by service of process or using a method by which the mailing can be tracked or the delivery can be confirmed to their last known addresses.

A transportation network company may designate a mailing address of record for service, and additionally may provide an email address to which the department shall direct electronic courtesy copies of mailed correspondence, if such email address is provided.

p.

27 ESHB 2076 (11) During an investigation of the driver's retaliation complaint, if the department discovers information suggesting alleged violations by the transportation network company of the driver's other rights under this chapter, and all applicable rules, the department may investigate and take appropriate enforcement action without requiring the driver to file a new or separate complaint.

In the event the department so expands an investigation, it shall provide reasonable notice to the transportation network company that it is doing so.

If the department determines that the transportation network company violated additional rights of the driver under this chapter, and all applicable rules, the transportation network company may be subject to additional enforcement actions for the violation of such rights.

If the department discovers information alleging the transportation network company retaliated against or otherwise violated rights of other drivers under this chapter, and all applicable rules, the department may launch further investigation under this chapter, and all applicable rules, without requiring additional complaints to be filed.

(12) The department may prioritize retaliation investigations as needed to allow for timely resolution of complaints.

(13) Nothing in this section impedes the department's ability to investigate under the authority prescribed in RCW 49.48.040.

(14) Nothing in this section precludes a driver's right to pursue private legal action, if any exists.

(15) If the department's investigation finds that a transportation network company retaliated against a driver, pursuant to the procedures outlined in this section, the department may order the transportation network company to pay the department a civil penalty.

A civil penalty for a transportation network company's retaliatory action will not be less than $1,000 or an amount equal to 10 percent of the total amount of unpaid earnings attributable to the retaliatory action per claimant, whichever is greater.

The maximum civil penalty for a transportation network company's retaliatory action shall be $20,000 per claimant for the first violation, and $40,000 for each repeat violation.

(16) The department may, at any time, waive or reduce any civil penalty assessed against a transportation network company under this section if the department determines that the transportation network company has taken corrective action to remedy the retaliatory action.

p.

28 ESHB 2076 (17) The department will deposit civil penalties paid under this section in the supplemental pension fund established under RCW 51.44.033.

(18) Collections of amounts owed for unpaid citations and notices of assessment, as detailed in this section, will be handled pursuant to the procedures outlined in RCW 49.48.086.

(19) A person, firm, or corporation aggrieved by a citation and notice of assessment or a determination of compliance may, within 30 days after the date of such determination, submit a request for reconsideration to the department setting forth the grounds for seeking such reconsideration, or submit an appeal to the director pursuant to the procedures outlined in subsection (22) of this section.

If the department receives a timely request for reconsideration, the department shall either accept the request or treat the request as a notice of appeal.

(20) If a request for reconsideration is accepted, the department shall send notice of the request for reconsideration to the transportation network company and the driver.

The department shall determine if there are any valid reasons to reverse or modify the department's original decision to issue a citation and notice of assessment or determination of compliance within 30 days of receipt of such request.

The department may extend this period by providing advance written notice to the driver and transportation network company setting forth good cause for an extension of the period, and specifying the duration of the extension.

After reviewing the reconsideration, the department shall either:

(a) Notify the driver and the transportation network company that the citation and notice of assessment or determination of compliance is affirmed;

or (b) Notify the driver and the transportation network company that the citation and notice of assessment or determination of compliance has been reversed or modified.

(21) A request for reconsideration submitted to the department shall stay the effectiveness of the citation and notice of assessment or the determination of compliance pending the reconsideration decision by the department.

(22)(a) Within 30 days after the date the department issues a citation and notice of assessment or a determination of compliance, or within 30 days after the date the department issues its decision on the request for reconsideration, a person, firm, or corporation p.

29 ESHB 2076 aggrieved by a citation and notice of assessment or a determination of compliance may file with the director a notice of appeal.

(b) A notice of appeal filed with the director under this section shall stay the effectiveness of the citation and notice of assessment or the determination of compliance pending final review of the appeal by the director as provided for in chapter 34.05 RCW.

(c) Upon receipt of a notice of appeal, the director shall assign the hearing to an administrative law judge of the office of administrative hearings to conduct the hearing and issue an initial order.

The hearing and review procedures shall be conducted in accordance with chapter 34.05 RCW, and the standard of review by the administrative law judge of an appealed citation and notice of assessment or determination of compliance shall be de novo.

Any party who seeks to challenge an initial order shall file a petition for administrative review with the director within 30 days after service of the initial order.

The director shall conduct administrative review in accordance with chapter 34.05 RCW.

(23) If a request for reconsideration is not submitted to the department within 30 days after the date of the original citation and notice of assessment or determination of compliance, and a person, firm, or corporation aggrieved by a citation and notice of assessment or determination of compliance did not submit an appeal to the director, then the citation and notice of assessment or determination of compliance is final and binding, and not subject to further appeal.

(24) The director shall issue all final orders after appeal of the initial order.

The final order of the director is subject to judicial review in accordance with chapter 34.05 RCW.

(25) The director's orders that are not appealed within the time period specified in this section and chapter 34.05 RCW are final and binding, and not subject to further appeal.

(26) Absent good cause, a transportation network company that fails to allow adequate inspection of records in an investigation by the department under this section within a reasonable time period may not use such records in any appeal under such rules to challenge the correctness of any determination by the department.

PART II PAID SICK LEAVE p.

30 ESHB 2076 Sec.

6.

(b)p. An employee is authorized to use paid sick leave for the following reasons:

11 HB 2076 (b) An employee is authorized to use paid sick leave for the following reasons:

(g) For absences exceeding three days, an employer may require verification that an employee's use of paid sick leave is for an p.authorized purpose.

31 ESHB 2076 authorized purpose.

(i)p. For each hour of paid sick leave used, an employee shall be paid the greater of the minimum hourly wage rate established in this chapter or his or her normal hourly compensation.

12 HB 2076 (i) For each hour of paid sick leave used, an employee shall be paid the greater of the minimum hourly wage rate established in this chapter or his or her normal hourly compensation.

p.(d) A registered domestic partner;

32 ESHB 2076 (d) A registered domestic partner;

(5)(a) The definitions in this subsection apply to this subsection:

(i) "Average hourly compensation" means a driver's compensation during passenger platform time from, or facilitated by, the transportation network company, during the 365 days immediately prior to the day that paid sick time is used, divided by the total hours of passenger platform time worked by the driver on that transportation network company's driver platform during that period.

"Average hourly compensation" does not include tips.

(ii) "Driver," "driver platform," "passenger platform time," and "transportation network company" have the meanings provided in section 1 of this act.

(iii) "Earned paid sick time" is the time provided by a transportation network company to a driver as calculated under this subsection.

For each hour of earned paid sick time used by a driver, the transportation network company shall compensate the driver at a rate equal to the driver's average hourly compensation.

(iv) For purposes of drivers, "family member" means any of the following:

(A) A child, including a biological, adopted, or foster child, stepchild, or a child to whom the driver stands in loco parentis, is a legal guardian, or is a de facto parent, regardless of age or dependency status;

(B) A biological, adoptive, de facto, or foster parent, stepparent, or legal guardian of a driver or the driver's spouse or registered domestic partner, or a person who stood in loco parentis when the driver was a minor child;

(C) A spouse;

(D) A registered domestic partner;

(E) A grandparent;

3313 ESHBHB 2076 (F)(5)(a) AThe grandchild;definitions in this subsection apply to this subsection:

(i) "Average hourly earnings" means a driver's earnings from, or (G)facilitated Aby, sibling.the transportation network company, during the 365 days immediately prior to the day that paid sick time is used, divided by the total hours of passenger platform time worked by the driver on that transportation network company's driver platform during that period.

(b)(ii) Beginning"Driver," January"driver 1,platform," 2023,"passenger a transportation network company must provide to each driver operating on its driver platform compensationtime," forand earned"transportation paidnetwork sickcompany" timehave asthe requiredmeanings byprovided thisin subsectionsection and1 subject to the provisions of this subsection.act.

A(b) driverBeginning shallJanuary accrue1, one2023, houra oftransportation earnednetwork company must provide to each driver operating on its driver platform paid sick timeleave foras everyrequired 40by hoursthis ofsection passengerand platformsubject timeto worked.the provisions of this subsection.

(c) A driver isshall entitledaccrue toone usehour accruedof earned paid sick timeleave uponfor recordingevery 9040 hours of passenger platform time onworked. the transportation network company's driver platform.

(d)(c) ForA eachdriver houris ofentitled earnedto use accrued paid sick timeleave used,upon arecording driver90 shallhours beof paidpassenger platform time completed by the driver'sdriver averageon hourlythe compensation.transportation network company's driver platform.

(e)(d) AFor transportationeach networkhour companyof shallpaid establishsick anleave accessibleused, systema fordriver driversshall tobe requestpaid andthe usedriver's earnedaverage paidhourly sickcompensation. time.

(e) A transportation network company shall establish an accessible system for drivers to request and use paid sick leave.

(f) A driver may carry over up to 40 hours of unused earned paid sick timeleave to the next calendar year.

If a driver carries over unused earned paid sick timeleave to the following year, accrual of earned paid sick timeleave in the subsequent year must be in addition to the hours accrued in the previous year and carried over.

(g) A driver is entitled to use accrued earned paid sick timeleave if the driver has used the transportation network company's platform as a driver within 90 calendar days preceding the driver's request to use earned paid sick time.leave.

(h) A driver is entitled to use earned paid sick timeleave forduring a deactivation or other status that prevents the followingdriver reasons:from performing network services on the transportation network company's platform, unless the driver's status is due to a verified allegation of sexual assault perpetrated by the driver.

(i) An absence resulting from the driver's mental or physical illness, injury, or health condition;

to accommodate the driver's need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition;

or an employee's need for preventive medical care;

(ii) To allow the driver to provide care for a family member with a mental or physical illness, injury, or health condition;

care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition;

or care for a family member who needs preventive medical care;

(iii) When the driver's child's school or place of care has been closed by order of a public official for any health-related reason;

3414 ESHBHB 2076 (iv)(i) ForIf absencesa fordriver whichdoes annot employeerecord wouldany bepassenger entitledplatform time in a transportation network company's driver platform for 365 or more consecutive days or the driver's contract with a transportation network company is terminated, any unused earned paid sick leave underaccrued RCWup 49.76.030;to that point with that transportation network company is no longer valid or recognized.

and(j) (v)Drivers Duringmay ause deactivationaccrued ordays otherof statuspaid thatsick preventsleave thein driverincrements fromof performing network services on the transportation network company's platform, unless the deactivation or status is due to a verifiedminimum allegation of sexualfour assault or physicalmore assaulthours. perpetrated by the driver.

(i)Drivers Ifare aentitled driverto doesrequest notfour record any passenger platform time in a transportation network company's driver platform for 365 or more consecutivehours days,of any unused earned paid sick timeleave accruedfor upimmediate touse, thatincluding pointconsecutive withdays thatof transportationuse. network company is no longer valid or recognized.

(j) Drivers mayare usenot accruedentitled daysto ofuse earnedmore paidthan sickeight timehours in increments of apaid minimumsick ofleave fourwithin ora moresingle hours.calendar day.

Drivers(k) areA entitledtransportation tonetwork requestcompany fourshall orcompensate morea driver for requested hours ofor earneddays of paid sick timeleave forno immediatelater use,than including14 consecutivecalendar days or the next regularly scheduled date of use.compensation following the requested hours or days of paid sick leave.

Drivers(l) areA nottransportation entitlednetwork tocompany useshall morenot thanrequest eightor hoursrequire reasonable verification of earneda paiddriver's sickqualifying timeillness withinexcept aas singlepermitted calendarunder day.subsection (1)(g) of this section.

(k)If Aa transportation network company shallrequires verification pursuant to subsection (1)(g) of this section, the transportation network company must compensate athe driver for the requested hours or days of earned paid sick timeleave no later than 14 calendar days or the driver's next regularly scheduled date of compensation followingafter thesatisfactory requestedverification hoursis orprovided. days of earned paid sick time.

(l)(m) AIf a driver accepts an offer of prearranged services for compensation from a transportation network company shallduring notthe requestfour- hour period or requireperiods reasonablefor verificationwhich ofthe adriver driver'srequested qualifyingpaid illnesssick exceptleave, asa wouldtransportation benetwork permittedcompany tomay bedetermine requestedthat ofthe andriver employeedid undernot subsectionuse (1)(g)paid ofsick thisleave section.for an authorized purpose.

If a transportation network company requires verification pursuant to this subsection, the transportation network company must compensate the driver for the requested hours or days of earned paid sick time no later than the driver's next regularly scheduled date of compensation after satisfactory verification is provided.

(m) If a driver accepts an offer of prearranged services for compensation from a transportation network company during the four- hour period or periods for which the driver requested earned paid sick time, a transportation network company may determine that the driver did not use earned paid sick time for an authorized purpose.

p.(i) Written notification of the current rate of average hourly compensation while a passenger is in the vehicle during the most recent calendar month for use of paid sick leave;

35(ii) ESHBan 2076updated (i)amount Written notification of theaccrued currentpaid ratesick ofleave averagesince hourly compensation while a passenger is in the vehiclelast duringnotification; the most recent calendar month for use of earned paid sick time;

(ii)(iii) Anreduced updated amount of accrued earned paid sick timeleave since the last notification;

(iii)(iv) Reducedany earnedunused paid sick timeleave sinceavailable thefor lastuse; notification;

(iv)and Any(v) unusedany earnedamount paidthat sickthe timetransportation availablenetwork company may subtract from the driver's compensation for use;paid sick leave.

and (v) Any amount that the transportation network company may subtract from the driver's compensation for earned paid sick time.

A pay stub;p.

15 HB 2076 stub;

or an online system where drivers can access their own earned paid sick timeleave information.

(o)PART AIII transportationINDUSTRIAL networkINSURANCE companySec. may not adopt or enforce any policy that counts the use of earned paid sick time as an absence that may lead to or result in any action that adversely affects the driver's use of the transportation network.

(p)4. A transportation network company may not take any action against a driver that adversely affects the driver's use of the transportation network due to his or her exercise of any rights under this subsection including the use of earned paid sick time.

(q) The department may adopt rules to implement this subsection.

NEW SECTION.

Sec.

7.

A new section is added to chapter 49.46 RCW to read as follows:

(1) If a driver files a complaint with the department alleging that the transportation network company failed to provide the driver with earned paid sick time as provided in RCW 49.46.210, the department shall investigate the complaint as an alleged violation of a compensation-related requirement of section 1 of this act.

(2) When the department's investigation results in a finding that the transportation network company failed to provide the driver with earned paid sick time accrual, use, or carryover during an ongoing contractual relationship, the driver may elect to:

p.

36 ESHB 2076 (a) Receive full access to the balance of accrued earned paid sick time hours unlawfully withheld by the transportation network company, based on a calculation of one hour of earned paid sick time for every 40 hours of passenger platform time worked;

or (b) Receive payment from the transportation network company at their average hourly compensation for each hour of earned paid sick time that the driver would have used or been reasonably expected to use, whichever is greater, during the period of noncompliance, not to exceed an amount the driver would have otherwise accrued.

The driver will receive full access to the balance of accrued earned paid sick time unlawfully withheld by the transportation network company, less the number of earned paid sick time paid out to the driver pursuant to this subsection.

(3) For a driver whose contract with the transportation network company is terminated or who has not recorded passenger platform time on the transportation network company's driver platform for 365 days or more, when the department's investigation results in a finding that the transportation network company failed to provide the driver with earned paid sick time accrual, use, or carryover, the driver may elect to receive payment at their average hourly compensation for earned paid sick time that the driver would have earned or been reasonably expected to use, whichever is greater, during the period of noncompliance, receive reinstatement of the balance of earned paid sick time, or receive a combination of payment and reinstatement from the transportation network company for all earned paid sick time that would have accrued during the period of noncompliance, unless such reinstatement is prohibited by law.

(4) The department's notice of assessment, pursuant to RCW 49.48.083, may order the transportation network company to provide the driver any combination of reinstatement and payment of accrued, unused earned paid sick time assessed pursuant to subsection (2) or (3) of this section, unless such reinstatement is prohibited by law.

(5) For purposes of this section, a transportation network company found to be in noncompliance cannot cap the driver's carryover of earned paid sick time at 40 hours to the following year for each year of noncompliance.

(6) The department may promulgate rules and regulations in accordance with this section.

PART III p.

37 ESHB 2076 INDUSTRIAL INSURANCE Sec.

8.

Only such officers who exercise substantial control in the daily management of the corporation and whosep. primary responsibilities do not include the performance of manual labor are included within this subsection.

(b)16 Alternatively,HB a2076 corporationwhose thatprimary isresponsibilities do not ainclude "public company" as defined in RCW 23B.01.400 may exempt eight or fewer bona fide officers, who are voluntarily elected or voluntarily appointed in accordance with the articlesperformance of incorporationmanual orlabor bylawsare ofincluded thewithin corporationthis andsubsection. who exercise substantial control in the daily p.

38(b) ESHBAlternatively, 2076a corporation that is not a "public company" as defined in RCW 23B.01.400 may exempt eight or fewer bona fide officers, who are voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation and who exercise substantial control in the daily management of the corporation, from coverage under this title without regard to the officers' performance of manual labor if the exempted officer is a shareholder of the corporation, or may exempt any number of officers if all the exempted officers are related by blood within the third degree or marriage.

(11)p. Services performed by an insurance producer, as defined in RCW 48.17.010, or a surplus line broker licensed under chapter 48.15 RCW.

17 HB 2076 (11) Services performed by an insurance producer, as defined in RCW 48.17.010, or a surplus line broker licensed under chapter 48.15 RCW.

p.(a) Management of the company is vested in its members, and the members for whom exemption is sought would qualify for exemption under subsection (5) of this section were the company a sole proprietorship or partnership;

39 ESHB 2076 (a) Management of the company is vested in its members, and the members for whom exemption is sought would qualify for exemption under subsection (5) of this section were the company a sole proprietorship or partnership;

9.5.

(2) NotwithstandingFor subsectionthe (1) of this section, and for purposes of this title only, "employer" includes a transportation network company,company as defined in section 1 of this act,act shallp. have the same rights and obligations of an "employer" under this title with respect to a driver, as defined in section 1 of this act, only while the driver is engaged in passenger platform time and dispatch platform time.

18 HB 2076 while the driver is engaged in passenger platform time and dispatch platform time, as those terms are defined in section 1 of this act.

10.6.

p.(1) "Worker" means every person in this state who is engaged in the employment of an employer under this title, whether by way of manual labor or otherwise in the course of his or her employment;

40 ESHB 2076 (1) "Worker" means every person in this state who is engaged in the employment of an employer under this title, whether by way of manual labor or otherwise in the course of his or her employment;

(2) NotwithstandingFor subsectionthe (1)purposes of this section,title andonly, for"worker" purposesincludes ofa thistransportation titlenetwork only,company a driver, as defined in section 1 of this act, shallwhile haveengaged thein samepassenger rightsplatform time and obligationsdispatch ofplatform atime, "worker"as underthose thisterms titleare with respect to a transportation network company, as defined in section 1 of this act,act. only while the driver is engaged in passenger platform time and dispatch platform time.

11.7.

(1) Beginning January 1, 2023, the department shall assess premiums for transportation network companies, as defined in section 1 of this act, in accordance with RCW 51.16.035 and this section, for workers' compensation coverage applicable to drivers, as defined in section 1 of this act, while the driver is engaged in passenger platform time and dispatch platform time, as those terms are defined in section 1 of this act.

(2) For the purposes of calculating the premium rates for driverstransportation undernetwork subsectioncompanies, (1) of this section, the department shall multiplycompute thepremium totalrates numberbased ofon hours spentworked by the drivers inof passenger platform time and dispatch platform time on the transportation network company'scompanies driverwhile platformengaged byin thepassenger ratesplatform establishedtime forand taxicabdispatch companies.platform time.

TheHowever, departmentfor mayrates subsequentlyin adjust2023, premiumsthe inrate accordanceassessed withmust departmentbe rules.equivalent to taxicab companies.

For each subsequent year, the department shall p.

4119 ESHBHB 2076 (3)calculate Transportationan networkadjusted companies,premium notrate qualifyingby asadjusting a self- insurer, shall insure with the statecurrent andamount shall,by on or before the lastrate day of January,inflation. April, July, and October of each year thereafter, furnish the department with a true and accurate statement of the hours for which drivers, as defined in section 1 of this act, were engaged in passenger platform time and dispatch platform time on the transportation network company's driver platform during the preceding calendar quarter and the total amount paid to such drivers engaged in passenger platform time on the transportation network company's driver platform during the preceding calendar quarter, and shall pay its premium based on the total passenger platform time and dispatch platform time to the appropriate fund.

PremiumsThe foradjusted aamounts calendarmust quarter,be whethercalculated reportedusing orthe not,consumer shallprice becomeindex duefor urban wage earners and delinquentclerical onworkers, theCPI-W, dayor immediatelya followingsuccessor index, for the last12 daymonths ofprior theto montheach followingJanuary 1st as calculated by the calendarUnited quarter.States department of labor.

(3) The sufficiencydepartment ofmay suchadopt statementrules shallto becarry subjectout to the approvalpurposes of thethis director:section, including rules providing for alternative reporting requirements, alternative reporting periods, and payment due dates for coverage under this section.

PROVIDED, That the director may in his or her discretion and for the effective administration of this title require a transportation network company in individual instances to furnish a supplementary report containing the name of each individual driver, his or her hours engaged in passenger platform time and dispatch platform time on the transportation network company's driver platform, and his or her compensation:

PROVIDED FURTHER, That the department may promulgate rules and regulations in accordance with chapter 34.05 RCW to establish other reporting periods and payment due dates in lieu of reports and payments following each calendar quarter, and may also establish terms and conditions for payment of premiums and assessments based on estimated passenger platform time and dispatch platform time on the transportation network company's driver platform, with such payments being subject to approval as to sufficiency of the estimated passenger platform time and dispatch platform time on the transportation network company's driver platform by the department, and also subject to appropriate periodic adjustments made by the department based on actual passenger platform time and dispatch platform time on the transportation network company's driver platform.

(4) The department may adopt rules to carry out the purposes of this section, including rules providing for alternative reporting requirements.

p.

42 ESHB 2076 (5) This section does not apply to any worker who is not a driver, and who is employed by the transportation network company.

For those workers the processes for determining coverage, calculating premiums, reporting requirements, reporting periods, and payment due dates are subject to the provisions of this title that apply generally to employers and workers.

12.8.

((Every)) Except as provided in section 117 of this act, every employer not qualifying as a self-insurer, shall insure with the state and shall, on or before the last day of January, April, July and October of each year thereafter, furnish the department with a true and accurate payroll for the period in which workers were employed by it during the preceding calendar quarter, the total amount paid to such workers during such preceding calendar quarter, and a segregation of employment in the different classes established pursuant to this title, and shall pay its premium thereon to the appropriate fund.

PROVIDED FURTHER, That the department may promulgate rules and regulations in accordance with chapter 34.05 RCW to establish other reporting periods and payment due dates in lieu of reports and payments following each calendar quarter, and may also establish terms and conditions for payment of premiums and assessments based on estimated payrolls, with such payments being subject to approval as to sufficiency of the estimated payrollp. by the department, and also subject to appropriate periodic adjustments made by the department based on actual payroll:

AND20 PROVIDEDHB FURTHER,2076 Thatpayroll aby temporarythe helpdepartment, companyand whichalso providessubject p.to appropriate periodic adjustments made by the department based on actual payroll:

43AND ESHBPROVIDED 2076FURTHER, That a temporary help company which provides workers on a temporary basis to its customers shall be considered the employer for purposes of reporting and paying premiums and assessments under this title according to the appropriate rate classifications as determined by the department:

13.9.

(2) A transportation network company's compliance with this chapter satisfies any obligation under any county,local city,law town, or other municipal corporation ordinance requiring compensation or benefits for workplace injuries or occupational disease.

PART IV STATEWIDEPAID REGULATORYFAMILY REQUIREMENTSMEDICAL NEWLEAVE SECTION.Sec.