Creates the Employee Fair Classification Act to clarify employer-employee relationships, and to prevent misclassification of a contract employee. This act sets out definitions and criteria for employee classifications. This act prohibits the discharge, threat, penalizing, discriminating or retaliating against an employee under certain circumstances. This act creates oversight by the Employment Security Department and provides for procedures and remedies for employees. This act also creates penalties for employers in violation of the act. (See also SB 5526).   Official Text and Analysis.

Modifies the element of the independent contractor test related to the right to control. It deletes from the test that an individual is an employee if the control is exercised "directly or indirectly" and that the control need not extend to all the details of the physical performances of services for an individual to be an employee.

Excludes from the definition of "employee" in the Employee Fair Classification Act: (1) an outside salesperson paid solely on commissions, as defined by the Department of Labor & Industries; and (2) an individual employed on a casual and sporadic basis. It also eliminates references to "remuneration" in the definition of "employee" and the independent contractor test. It provides that a wage lien is subordinate to a tax lien that the Department of Revenue is authorized or required to collect and that originates before a wage lien. It also makes a technical correction by adding "and" between the last two elements of the independent contractor test.