Workers’ Compensation

ORS 656.029
Obligation of person awarding contract to provide coverage for workers under contract

  • exceptions
  • effect of failure to provide coverage

(1)

If a person awards a contract involving the performance of labor where such labor is a normal and customary part or process of the person’s trade or business, the person awarding the contract is responsible for providing workers’ compensation insurance coverage for all individuals, other than those exempt under ORS 656.027 (Who are subject workers), who perform labor under the contract unless the person to whom the contract is awarded provides such coverage for those individuals before labor under the contract commences. If an individual who performs labor under the contract incurs a compensable injury, and no workers’ compensation insurance coverage is provided for that individual by the person who is charged with the responsibility for providing such coverage before labor under the contract commences, that person shall be treated as a noncomplying employer and benefits shall be paid to the injured worker in the manner provided in this chapter for the payment of benefits to the worker of a noncomplying employer.

(2)

If a person to whom the contract is awarded is exempt from coverage under ORS 656.027 (Who are subject workers), and that person engages individuals who are not exempt under ORS 656.027 (Who are subject workers) in the performance of the contract, that person shall provide workers’ compensation insurance coverage for all such individuals. If an individual who performs labor under the contract incurs a compensable injury, and no workers’ compensation insurance coverage is provided for that individual by the person to whom the contract is awarded, that person shall be treated as a noncomplying employer and benefits shall be paid to the injured worker in the manner provided in this chapter for the payment of benefits to the worker of a noncomplying employer.

(3)

As used in this section:

(a)

“Person” includes partnerships, joint ventures, associations, corporations, limited liability companies, governmental agencies and sole proprietorships.

(b)

“Sole proprietorship” means a business entity or individual who performs labor without the assistance of others. [1979 c.864 §2; 1981 c.725 §1; 1981 c.854 §4; 1983 c.397 §1; 1983 c.579 §2a; 1985 c.706 §1; 1989 c.762 §5; 1995 c.93 §34; 1995 c.332 §6a]

Notes of Decisions

If requirements of this section are met it is immaterial whether there is actual employer-employee relationship because relationship is created by operation of law. Love v. Northwest Exploration Co., 67 Or 413, 678 P2d 754 (1984); Kistner v. BLT Enterprises, 74 Or App 131, 700 P2d 1047 (1985)

Partnership can be subject worker under this section. EBI Companies v. Erzen, 73 Or App 256, 698 P2d 534 (1985), Sup Ct review denied; Kistner v. BLT Enterprises, 74 Or App 131, 700 P2d 1047 (1985)

For activities prior to October 4, 1989, registration as proprietor of independent building business establishes conclusive presumption person is independent contractor. HDG Enterprises v. Natl. Council on Comp. Ins., 121 Or App 513, 856 P2d 1037 (1993)

Where contract is awarded to sole proprietor, exemption from coverage under ORS 656.027 applies to proprietor’s employees only if contract obligates proprietor to perform personally as worker rather than in role as employer. K-Mart Corporation v. Claussing, 162 Or App 558, 986 P2d 1185 (1999)

Requirement that general contractor or subcontractor “provide” coverage means coverage must actually be supplied. Liberty Northwest Insurance Corp. v. Sparks, 171 Or App 65, 14 P3d 624 (2000)

Exemption granted to general contractor if subcontractor supplies coverage “before” work begins applies only if coverage supplied by subcontractor is still in force at time work commences. Liberty Northwest Insurance Corp. v. Sparks, 171 Or App 65, 14 P3d 624 (2000)

Key aspects of “trade or business” are that activity is both regular and commercial in character. Sorenson v. LaTour, 217 Or App 373, 176 P3d 395 (2007)

Source

Last accessed
May 30, 2023

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