Concerning misclassification in the finishing trades on public works projects.

Removed the automatic provision that would instantly reclassify all workers as employees if a contractor hired more than two independent contractors for the same type of work.

Changed the threshold for triggering enforcement from 'more than two' (three or more) independent contractors to align with the new investigative process.

Deleted the automatic reclassification language in the definitions of 'worker' and 'employee' within RCW 39.12.100 and 51.08.185.

Added a new requirement for the Department of Labor and Industries to investigate misclassification claims when three or more independent contractors are performing the same type of covered finishing work simultaneously.

Established specific entities authorized to refer cases for investigation, including the project awarding body, other contractors, labor organizations, and individual workers.

The limit on independent contractors is now conditional on them performing the same type of work at the same time, rather than a flat limit on the total number of contractors.

The penalty for violating the contractor limit was expanded to cover all individuals performing the same type of work simultaneously, changing the classification from just 'laborer' to 'worker, laborer, or mechanic'.

A new definition was added to RCW 51.08.181 to explicitly state that individuals performing the same type of work simultaneously when the contractor limit is exceeded are considered employees.

Exemptions for independent contractors were updated to align with the new 'same type of work at the same time' rule, ensuring the exception applies only when the contractor limit is not violated.