The Everett City Council voted 9-1 on March 25, 2026 to approve a new fair labor standards ordinance that requires contractors doing business with the city to maintain detailed payroll records, properly classify workers, and allow employees to report violations directly to city officials.
The ordinance gives Everett expanded enforcement tools against contractors who commit wage theft or misclassify employees — and applies the protections not just to union workers, but to all workers on city contracts.
What the Ordinance Requires
Under the new law, contractors seeking city business must meet a set of labor standards as a condition of their contract. According to Ward 2 Councilor Stephanie Martins, who championed the measure, those requirements include:
- Maintaining industrial coverage insurance
- Properly classifying employees rather than misclassifying them as independent contractors
- Keeping daily sign-in and sign-out logs for workers on the job
- Complying with federal healthcare reform law
- Submitting monthly certified payroll records to the city
Employees working under city contracts will be able to report violations through a city-managed reporting system. If a contractor is found to be out of compliance, the city gains the authority to revoke or suspend the contract, or attach additional conditions to it.
Why It Matters Beyond Union Workers
One of the central arguments Councilor Martins made during debate was that the ordinance fills a protection gap that union contracts don’t address. Union members typically have collective bargaining agreements that cover labor standards. Non-union workers on city-funded projects have had less formal protection.
“A developer in the wrong will find it cheaper to pay employees than fighting the city,” Martins argued during council deliberations.
The ordinance was also framed as a tool to combat trafficking and immigration-related exploitation of workers on city job sites — not just traditional wage theft.
The One Dissenting Vote
Ward 1 Councilor Michele Capone cast the lone no vote, expressing concern that Everett’s city government lacks the administrative capacity to meaningfully enforce the ordinance’s requirements.
“I don’t think the City of Everett can even enforce all of the different issues within this ordinance suggestion,” Capone said, also raising questions about potential legal challenges to the measure.
Supporters of the ordinance pushed back on the enforcement concern. Councilor Rogers explained during debate that enforcement does not have to fall entirely on city staff — the ordinance creates a mechanism to “elevate a violation to the state,” meaning complaints can be referred to state labor agencies with broader investigative authority. “We would have the ability to elevate a violation to the state,” Rogers said, noting this gives the city meaningful enforcement reach without requiring a large new city bureaucracy.
Who’s Affected
The ordinance applies to contractors who enter into agreements with the City of Everett. It does not apply retroactively to existing contracts. Businesses that rely on city contracts — from construction firms to service providers — will need to ensure their record-keeping and employment practices meet the new requirements before seeking future city work.
What Happens Next
The ordinance passed with a veto-proof 9-1 margin and is now city law. Contractors working on upcoming city projects should review the requirements and consult with their legal counsel about compliance timelines.
Residents who believe a contractor working on a city project is violating the ordinance can report concerns through the city’s official channels at everettwa.gov.
Frequently Asked Questions
What did Everett’s new fair labor ordinance do?
The ordinance requires contractors doing business with the city to maintain proper payroll records, correctly classify workers, and provide employees with a way to report violations. The city can now revoke or suspend contracts for noncompliance.
When did the ordinance pass?
The Everett City Council passed the ordinance on March 25, 2026, by a 9-1 margin.
Who voted against it?
Ward 1 Councilor Michele Capone cast the sole dissenting vote, citing concerns about the city’s ability to enforce the ordinance.
Does this apply to union workers?
Union workers on city contracts are already covered by their collective bargaining agreements. The ordinance primarily extends protections to non-union workers, though it applies to all contractors working under city agreements.
Can employees report violations?
Yes. The ordinance creates a formal reporting mechanism so employees can flag violations to the city. The city can then act on those reports or refer them to state labor enforcement agencies.
Does this apply to all businesses in Everett?
No. The ordinance applies to contractors seeking or holding contracts with the City of Everett — not to all private employers operating within city limits.
What can the city do if a contractor violates the ordinance?
The city can revoke a contract, suspend it, or impose additional conditions. It can also refer violations to state labor agencies for investigation.
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