Sorry treveller, I think I'll go with susi on this one as she actively is involved with advocacy and the police liason. I believe the law you cite applies to third parties (ie pimps, operators of bawdy houses, boyfriends, husbands) not sex workers.
The legality of sex work has already been determined by the courts, but it is still muddied by surrounding laws that criminalize the purchaser, third parties and public advertising, but susi has made it clear that VPD and other police forces are not interested in arresting purchasers as long as they aren't purchasing the services of minors or trafficked sex workers. Please feel free to correct me susi and thanks for all you do!