Independent Contractor Guide - A Step-by-Step Guide to Hiring Independent Contractors in Washington State

Sep 22, 2026

Independent Contractor Guide provides a step-by-step framework for determining when workers qualify as independent contractors under Washington State workers’ compensation law. It explains the “covered worker” presumption, emphasizes that labeling someone a contractor does not automatically remove employer duties, and highlights that each contract must be evaluated separately. The guide outlines key tests and legal responsibilities, including recordkeeping and paying premiums, and notes related obligations under safety and health law.

LanguageEnglish

CategoryLetters

FormatPDF

Pages20

Reading Time7 min

AccessFree to download

Introduction

Overview

Independent Contractor Tests

Getting started

Personal labor and equipment questions

Established business and IRS-related questions

Safety and applicable laws

Questions we are often asked

Still have questions?

Independent Contractor Guide A Step-by-Step Guide to Hiring Independent Contractors in Washington State Contents Introduction ..............................................................................2 Overview .................................................................................3 Getting started ............................................................................4 A . Does the independent contractor bring more than their personal labor? ......................4 A–1 . Do they hire crew of their own or are they bringing other employees? ...................4 A–2 . Or, are they bringing heavy or costly specialized equipment? ...........................5 B . Are they an established business, working without your direction or control? ................6 B–1 . Are they free from your supervision, direction or control? ..............................6 B–2 . Is the individual’s business different and separate from your own? ......................8 B–2(a) . Is the individual’s service “outside the usual course of business,” or in other words, does the contractor do something different from what you do? ......8 B–2(b) . Is the individual’s service being performed “outside of all of the places of business,” or in other words, does the contractor perform the service away from where you perform your services? ..................................9 B–2(c) . Is the individual contractually obligated to pay costs affiliated with the location from where the work is controlled (usually its headquarters)? ...........9 B–3 . Does the individual have an established independent business that existed before you brought them on—OR—does the individual have a principal place of business that qualifies for an IRS business deduction? .............................. 10 B–3(a) . Do you have evidence to demonstrate that the individual hasan established business? ................................................... 10 B–3(b) . Does the individual have a principal place of business that qualifies for an IRS business deduction? Do you have evidence to demonstrate it? ........... 10 B–4 . Is the individual responsible for filing a schedule of expenses with the IRS, such as would be part of a business tax return? ...................................... 11 B–5 . Does the individual have all required registrations and licenses for their business? ...... 11 B–6 . Does the individual maintain his/her own set of books and records that reflect all income and expenses of the business? ................................. 12 B–7 . This question is for construction contractors only: Is the individual a properly registered contractor? ................................................... 12 Your job site must be safe .................................................................13 Applicable laws ..........................................................................14 Questions we are often asked .............................................................16 Still have questions? ............................................................. Back Cover Important note about safety! Even if you determine that you have “independent contractors,” as defined in this guide, they may still be considered your employees under the Washington Industrial Safety and Health Act, RCW 49 .17 . This guideline does not address your obligations as an employer under safety and health law . See Page 13 for more information . Introduction Do you use independent contractors? In some cases, someone you consider an “independent contractor” is actually a worker who has legal protections that cannot be waived. If so, you maybe an employer with “covered workers” under Washington workers’ compensation law and not realize it. It is important that you understand your requirements. Otherwise, your business maybe vulnerable to unexpected regulatory penalties and even lawsuits. In Washin

FAQs

What does the guide say about whether a worker is a “covered worker” in Washington?

Washington presumes every worker is a covered worker for workers’ compensation purposes unless a narrow legal exception applies. If the person you hire is a covered worker, you have employer responsibilities.

Does calling someone an independent contractor automatically exempt an employer from workers’ compensation premiums?

No. The guide states that simply labeling a person an independent contractor does not automatically exempt you from paying workers’ compensation premiums.

Why must each contract be evaluated separately?

A person can be an independent contractor on one contract but not on another. The guide requires evaluating each contract on its own facts.

Sep 22, 2026

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