Blakey, you're talking out of your ass, as usual, and your ass is woefully ignorant. Microsoft was sued by some temps, settled it, and instituted an internal policy against retaining temporary workers for too long. That was Vizcaino v. Microsoft. Corporate civil settlements do not have the force of law.
MS got in trouble with the IRS, in a separate but similar matter, but it has nothing at all to do with Washington State (the IRS is a federal agency, not state).