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Oregon Independent Contractors: What you need to know

Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. In some situations, federal law will govern, but the question is most often resolved by looking to state law, particularly in areas such as unemployment tax liability, workers' compensation, and state wage and hour requirements.
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In Oregon and elsewhere, the most important or significant consideration in determining employee or contractor status is the fundamental question of control. Conversely, the lack of the employer's right to control the mode of doing the work is the primary consideration in bona fide independent contractor status. Oregon law sets out criteria for determining if an individual is an employee covered by workers' compensation, unemployment compensation, and income tax withholding, or is an independent contractor and is not covered (OR Stat Sec. 670.600). For these purposes, an independent contractor is defined as an individual who is:
• Free from direction and control over the means and manner of providing the services, subject only to the right of the person for whom the services are provided to specify the desired results
• Customarily engaged in an independently established business
• Licensed if the person provides services for which a license is required under state law
• Responsible for obtaining other licenses or certificates necessary to provide the services
A person is considered to be customarily engaged in an independently established business if any three of the following requirements are met:
• The person maintains a business location ...

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