Performance Contracting Inc. V. State Department Of Labor And Industries

Court of Appeals of Washington·Decided July 20, 2026·No. 88370-4·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

PERFORMANCE CONTRACTING, No. 88370-4-I INC, DIVISION ONE

Appellant,

v. UNPUBLISHED OPINION

DEPARTMENT OF LABOR AND INDUSTRIES,

Respondent.

FELDMAN, J. — Performance Contracting, Inc. (PCI) appeals from a decision of the Board of Industrial Insurance Appeals (Board) affirming a citation issued by the Department of Labor and Industries (Department) for three serious violations of applicable worksite safety regulations. Because the Board’s findings are supported by substantial evidence and PCI fails to establish an entitlement to relief, we affirm.

I

On September 20, 2021, Bryan Phillips, an employee of PCI, was fireproofing the ceiling of the fifth floor of the Washington State Convention Center Addition (WSCCA) project, a 1.5 million square-foot building with thirteen floors. He was operating an 11,000-pound motorized work platform, known as a “scissor lift,” which elevated him to approximately 27 feet above the floor to perform his

work. As Phillips maneuvered the lift, one of its wheels drove over a 13-inch by 48-inch hole in the concrete floor. The hole was covered by a ¾-inch thick piece of plywood that was coated with concrete slurry, fireproofing materials, and dust. The cover was designed to prevent concrete from falling through the hole to the floor below when the concrete flooring was poured and was not sufficient to support the weight of the scissor lift. Consequently, the scissor lift toppled over and both Phillips and the lift fell from the fifth floor of the WSCCA project to the street below. Phillips died as a result of the fall.

The Department, PCI, and the project’s general contractor met at the site later that day to conduct an inspection. They found six rectangular holes in the floor. Following the investigation, the Department issued a citation and notice of assessment citing PCI with the following alleged violations:

Violation 1 Item 1a Violation Type: Serious WAC 296-869-60030(1)

The employer did not ensure the operator of an elevated work platform kept a safe distance from holes.

Violation 1 Item 1b Violation Type: Serious WAC 296-880-40015(1)(b)

The employer did not ensure hole covers located at the Washington Convention Center, 1000 Olive Way, Seattle, WA 98101 could support twice the weight of equipment that may be imposed on the cover at any one time.

Violation 1 Item 2 Violation Type: Serious WAC 296-155-110(2)

The employer did not develop an Accident Prevention Program that is tailored to the needs of their particular workplace or operation and to the types of hazards involved.

The Department’s penalties for these alleged violations totaled $13,000: $7,000 for items 1a and 1b and $6,000 for item 2.

PCI appealed the citation to the Board. Following a three-day hearing, an Industrial Appeals Judge issued a proposed decision and order affirming the Department’s citation. The decision includes detailed findings of fact and conclusions of law. Relevant here, conclusions of law 2, 3, and 4 state as follows:

2. On September 20, 2021, PCI committed a serious violation of WAC 296-869-60030(1), within the meaning of RCW 49.17.180(2) as stated in Item No. 1-1(a) of Citation and Notice No. 317965771. The penalty is $7,000.

3. On September 20, 2021, PCI committed a serious violation of WAC 296-880-40015(1)(b) within the meaning of RCW 49.17.180(2) as stated in Item No. 1-1(b) of Citation and Notice No. 317965771. The penalty is included in Item No. 1-1b.

4. On September 20, 2021, PCI committed a serious violation of WAC 296-869-60030(1), within the meaning of RCW 49.17.180(2) as stated in Item No. 1-2 of Citation and Notice No.

317965771. The penalty is $6,000.

PCI then filed a petition for review to the Board. In its decision and order, the Board ruled:

After review of the entire record before us, we are persuaded that the Proposed Decision and Order is supported by the preponderance of the evidence and is correct as a matter of law. The Proposed Decision and Order’s Findings of Fact and Conclusions of Law are incorporated by reference and adopted as part of this order.

PCI then appealed to the superior court, which affirmed the Board’s decision and order. This timely appeal followed.

II

PCI broadly argues the Board’s decision is erroneous. Below, we briefly set forth the legal principles that govern our review of the decision and then address, and reject, each of PCI’s arguments.

A

The Washington State Constitution mandates protection of workers at construction sites. CONST. art. II, § 35. To that end, article II, section 35 provides, “The legislature shall pass necessary laws for the protection of persons working in mines, factories and other employments dangerous to life or deleterious to health; and fix pains and penalties for the enforcement of the same.” In accordance with that constitutional mandate, the Washington legislature enacted the Washington Industrial Safety and Health Act (WISHA) to “assure, insofar as may reasonably be possible, safe and healthful working conditions for every man and woman working in the state of Washington.” RCW 49.17.010.. The legislature has also delegated broad authority to the Department to adopt regulations to meet the general safety principles set forth in WISHA. RCW 49.17.040. Under WISHA, employers have a specific duty to “comply with the rules, regulations, and orders promulgated” by the Department. RCW 49.17.060(2); J.E. Dunn Nw., Inc. v. Dep’t of Labor & Indus., 139 Wn. App. 35, 48, 156 P.3d 250 (2007).

To prove a serious violation of WISHA, the Department must establish: “(1)

the cited standard applies, (2) the requirements of the standard were not met, (3) employees were exposed to or had access to the violative condition, (4) the employer knew or through the exercise of reasonable diligence could have known of the violative condition, and (5) there is a substantial probability that death or serious physical harm could result from the violative condition.” Ostrom Mushroom Farm Co. v. Washington State Dep’t of Labor & Indus., 13 Wn. App. 2d 262, 272, 463 P.3d 149 (2020). The Department “must establish each element by a

preponderance of the evidence.” Centimark Corp. v. Dep’t of Labor & Indus., 129 Wn. App. 368, 378, 119 P.3d 865 (2005).

Although PCI assigns error to numerous findings, it primarily contests whether the record establishes that it knew or through the exercise of reasonable diligence could have known of the violative condition—the fourth element of a WISHA violation. The Board may prove that element with evidence showing actual or constructive knowledge of the violative condition. Pro-Active Home Builders, Inc. v. Dep’t of Labor & Indus., 7 Wn. App. 2d 10, 18, 465 P.3d 375 (2018). “In general, constructive knowledge is established where the employer in the ‘exercise of reasonable diligence’ could have become aware of the condition.” Id. (quoting former RCW 49.17.180(6) (2018)). “‘Reasonable diligence’ includes the obligation of an employer to inspect the work site, anticipate hazards that employees may be exposed to, and take measures to prevent the occurrence of a violative condition.” Bayley Constr. v. Dep’t of Labor & Indus., 10 Wn. App. 2d 768, 783, 450 P.3d 647 (2019) (quoting Erection Co. v. Dep’t of Labor & Indus., 160 Wn. App. 194, 206- 07, 248 P.3d 1085 (2011). Constructive knowledge may be established in a number of ways, including evidence showing that the violative condition was readily observable or in a conspicuous location in the area of the employer’s crews. Pro-Active Home Builders, 7 Wn. App. 2d at 18.

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