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361 P.3d 767
Wash. Ct. App.
2015
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Background

  • Potelco hired temporary flaggers from Labor Ready for two October 2011 work sites (Bremerton and Bainbridge Island); Department inspectors observed deficient traffic-control signage and a flagger standing in the roadway.
  • Bainbridge: inspectors found fewer than the three advance-warning signs required in multiple approach directions; nearby contractors had posted signs, but those signs were not within the required distances for Potelco to rely on them.
  • Bremerton: a flagger stood immediately next to a "Flagger Ahead" sign (no advance distance), and sign spacing for an urban 25 mph street did not meet the table minimums.
  • Department issued serious WISHA citations for violations of WAC 296-155-305(8)(a) (advance warning signs), (8)(c) (spacing), and (9)(b) (flagger position); Board and ALJ affirmed; superior court affirmed; Potelco appealed.
  • The Board applied the "economic realities" test and found Potelco exercised control over the Labor Ready flaggers, making Potelco a joint employer responsible for compliance.

Issues

Issue Potelco's Argument Department's Argument Held
Whether Potelco violated WAC 296-155-305(8)(a) at Bainbridge by failing to provide a three-sign advance sequence Potelco: could rely on existing signs posted by nearby contractors / MUTCD discourages redundant signs Dept.: WAC requires employer to provide three-sign sequence for its own flagging operation; other sites’ signs were not within required distances Held: Affirmed — Potelco failed to place required signs and could not rely on neighboring sites’ signage
Whether Bremerton sign spacing violated WAC 296-155-305(8)(c) and whether flagger placement violated (9)(b) Potelco: spacing allowance for roadway conditions permits reduced distance; inspector opinion insufficient Dept.: signs must provide advance notice; zero spacing invalid; inspector observations adequate Held: Affirmed — flagger stood next to the sign (unchallenged), spacing insufficient; violations upheld
Whether WAC 296-155-305(8)(c) is unconstitutionally vague as applied Potelco: table’s vague allowance for reduced spacing leaves employers guessing Dept.: regulation reasonably read to prohibit zero spacing; apply to facts, not hypotheticals Held: Affirmed — regulation not unconstitutionally vague as applied to Potelco’s conduct
Whether Potelco can be held liable under WISHA for Labor Ready flaggers (economic realities / strict liability) Potelco: Labor Ready flaggers are not its employees; Board’s control finding insufficient — would create strict liability for non-employees Dept.: WISHA allows citation of multiple employers; economic realities test shows Potelco controlled site and had constructive knowledge Held: Affirmed — substantial evidence supports that Potelco controlled the work sites and is a joint employer; Department still must prove elements including knowledge (no strict liability)

Key Cases Cited

  • Elder Demolition, Inc. v. Dep’t of Labor & Indus., 149 Wn. App. 799 (Wn. App.) (WISHA remedial construction and review deference)
  • Pilchuck Contractors, Inc. v. Dep’t of Labor & Indus., 170 Wn. App. 514 (Wn. App.) (elements Department must prove for serious WISHA violation)
  • Express Constr. Co. v. Dep’t of Labor & Indus., 151 Wn. App. 589 (Wn. App.) (procedural burdens in WISHA enforcement)
  • J.E. Dunn Nw., Inc. v. Dep’t of Labor & Indus., 139 Wn. App. 35 (Wn. App.) (definition of substantial evidence)
  • City of Bellevue v. Raum, 171 Wn. App. 124 (Wn. App.) (appellate review limits — no reweighing evidence)
  • Laser Underground & Earthworks, Inc. v. Dep’t of Labor & Indus., 132 Wn. App. 274 (Wn. App.) (deference to agency construction of its regulation)
  • Potelco, Inc. v. Dep’t of Labor & Indus., 166 Wn. App. 647 (Wn. App.) (prior discussion of flagging regs and agency deference)
  • Afoa v. Port of Seattle, 176 Wn.2d 460 (Wash.) (multiple employers may be cited under WISHA)
  • Frank Coluccio Constr. Co. v. Dep’t of Labor & Indus., 181 Wn. App. 25 (Wn. App.) (elements and knowledge requirement for WISHA violations)
  • Lee Cook Trucking & Logging v. Dep’t of Labor & Indus., 109 Wn. App. 471 (Wn. App.) (OSHA jurisprudence persuasive for WISHA issues)
Read the full case

Case Details

Case Name: Potelco, Inc. v. Department of Labor & Industries
Court Name: Court of Appeals of Washington
Date Published: Sep 22, 2015
Citations: 361 P.3d 767; 191 Wash. App. 9; 191 Wn. App. 9; No. 46256-7-II
Docket Number: No. 46256-7-II
Court Abbreviation: Wash. Ct. App.
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