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Seattle Office for Civil Rights Rules
Chapter 70



SHRR 70-060           Integrated enterprises

  1. Single employer. Separate entities that form an integrated enterprise shall be a single employer under the Ordinance. Examples of an integrated enterprise include but are not limited to a single entrepreneur with multiple businesses, a corporation with subsidiaries in Seattle, a corporation with franchises in Seattle, etc.
  2. Determination. The Department will determine the existence of an integrated enterprise by assessing the degree of control exercised by one entity over the operation of another entity.The factors in this assessment include, but are not limited to:
    1. degree of interrelation between the operations;
    2. degree to which the entities share common management;
    3. centralized control of labor relations; and/or
    4. degree of common ownership or financial control over the entities.
  3. Tier Size. Employees of all separate entities that form an integrated enterprise shall be counted for the integrated enterprise's tier size.

SHRR 70-070           Joint employers

  1. Joint employer. Separate entities that exercise some control over the work or working conditions of the employee may be treated as a joint employer under the Ordinance. Joint employers may be separate and distinct entities with separate owners, managers, and facilities. An example of a joint employer includes a client and professional employer organization that have entered into a professional employer agreement.
  2. Determination. The Department may determine that separate entities are joint employers when an employee performs work which simultaneously benefits two or more employers and/or an employee works for two or more employers at different times during the workweek. The determination will be made on a case by case basis and will examine the entire relationship between the entities.
  3. Tier size for joint employers created by professional employer agreements. When a client enters into a professional employer agreement with a professional employer organization, only employees of the client (and not the employees of the professional employer organization) shall be counted for the client's tier size.

SHRR 70-080           Newly-acquired employers

A newly-acquired employer shall not be a "new employer" under the Ordinance. The provisions of the Ordinance for paid sick/safe time shall immediately apply to newly-acquired Tier One and Tier Two employers without a 24 month waiting period because the hire date of the first employee will relate back to the former employer. See SMC 14.16.090.

For example, a new company purchases an existing company's assets and retains the existing company's employees. The former company's employees are all retained by the new company. The new company is a newly-acquired employer and is responsible for immediate compliance with the Ordinance.

SHRR            70-090            Full-time equivalents

  1. In general.
    1. A full-time equivalent shall mean the number of hours worked for compensation that adds up to one full-time employee. See SMC 14.16.010(M).
    2. The employer tier size for the current calendar year will be calculated based on the average number of full-time equivalents paid for per calendar week during the preceding calendar year for any and all weeks during which at least one employee worked for compensation. See SMC 14.16.010(T)(4).
    3. To determine the number of full-time equivalents, all compensated hours of all employees shall be counted. See SMC 14.16.010(T)(4).
  2. Compensated Hours. Employers shall count compensated hours for all hours worked and are not required to count paid leave as compensated hours.
  3. Nonexempt employees and overtime. Employers shall count all hours worked by nonexempt employees, including overtime hours.
  4. Exempt employees. Employers shall count all hours worked by exempt employees based on hours for a full-time or part-time normal work week (up to 40 hours per week) rather than tracking actual hours worked.

    For example, if an exempt employee has a full-time normal work week of 40 hours per week, the employer counts "hours worked for compensation" based on 40 hours per week, regardless of whether the exempt employee worked more than 40 hours per week.
  5. Fractions of full-time equivalents. Employers shall count fractions of full-time equivalents.

    For example, if an employer defines full-time as working 40 hours per week and has six employees who each work 30 hours per week, this employer has 4.5 full-time equivalents and is a Tier One employer.

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