Independent contractor defined
Source:
Section 670.600 — Independent contractor defined, https://www.oregonlegislature.gov/bills_laws/ors/ors670.html.
Notes of Decisions
All eight elements must be satisfied before worker is considered independent contractor. Liberty Northwest Ins. Corp. v. Potts, 119 Or App 252, 850 P2d 1135 (1993); HDG Enterprises v. Natl. Council on Comp. Ins., 121 Or App 513, 856 P2d 1037 (1993)
Specification that work meet industry standard, even where only one method exists to achieve industry standard, does not give direction and control over means and manner of providing labor or services. B. King Construction, Inc. v. Natl. Council on Comp. Ins., 120 Or App 420, 852 P2d 927 (1993)
“Direction and control” refers to judicially created “right to control” test applied in conjunction with ORS 656.005, not actual control. S-W Floor Cover Shop v. National Council on Comp. Ins., 318 Or 614, 872 P2d 1 (1994)
Person found not to be worker is not subject to workers’ compensation coverage, so determination of person’s status as independent contractor is unnecessary. S-W Floor Cover Shop v. National Council on Comp. Ins., 318 Or 614, 872 P2d 1 (1994); Blackledge Furniture Co., Inc. v. National Council on Comp. Ins., 318 Or 632, 872 P2d 10 (1994); Lake Oswego Hunt, Inc. v. National Council on Comp. Ins., 318 Or 636, 872 P2d 12 (1994)
Meeting required number of criteria to qualify as independently established business fulfills requirement that representation of independent business status be made to public. Petersen v. Employment Dept., 135 Or App 344, 898 P2d 210 (1995)
Where determination regarding independent contractor status has been made under one of listed chapters, subsequent action by other agency under different listed chapter must be consistent with initial determination unless agency in subsequent action provides reasoned explanation for inconsistency. Kaib’s Roving R.Ph. Agency v. Employment Department, 161 Or App 290, 984 P2d 886 (1999)
Requirement that alleged employer prove by four or more listed factors that individual or business entity is engaged in independently established business applies only where alleged employer satisfies tax return criteria by establishing that individual or entity did not perform labor or services as independent contractor in previous year. Canvasser Services, Inc. v. Employment Dept., 163 Or App 270, 987 P2d 562 (1999), Sup Ct review denied
Principal factors that demonstrate control over means and manner of providing services are: (1) direct evidence of right to or exercise of control; (2) method of payment; (3) furnishing of equipment; and (4) right to fire. Avanti Press v. Employment Department Tax Section, 248 Or App 450, 274 P3d 190 (2012)
Individual does not “maintain a business location” if individual does not pay rent for office space, is not charged for equipment located at office and is not responsible for maintaining office. Compressed Pattern, LLC v. Employment Dept., 253 Or App 254, 293 P3d 1053 (2012)
Person is free from direction and control over means and manner of providing services if oversight primarily relates to desired result, not way in which work is performed. AGAT Transport, Inc. v. Employment Department, 256 Or App 294 (2013)
Taxicab drivers were not independent contractors where drivers used vehicles clearly marked with taxicab company’s color and numbers did not conduct business in separate space from company that instead exerted considerable control over all drivers’ vehicle, advertised and marketed company’s business even when providing drivers’ contact information to consumers because transportation services were provided exclusively for company in company-branded cars and were not permitted by company to hire other individuals to provide taxicab services but only to choose company-approved drivers to use drivers’ vehicles because company maintained authority to hire and fire service providers. Broadway Cab LLC v. Employment Department, 265 Or App 254, 336 P3d 12 (2014), aff’d 358 Or 431, 364 P3d 338 (2015)
Evidence that person conducted business in coffee shops or variety of different premises, without further evidence that person rented or otherwise affirmatively maintained business location, insufficient to show that person “maintained a business location.” ACN Opportunity, LLC v. Employment Department, 362 Or 824, 418 P3d 719 (2018)
Law Review Citations
31 WLR 647 (1995)
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