72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 470
A-Engrossed
Senate Bill 40
Ordered by the Senate May 5
Including Senate Amendments dated May 5
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Joint Interim Committee on
Judiciary for the Oregon State Bar Taxation Section)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Modifies factors used to determine status of worker as employee
or independent contractor.
A BILL FOR AN ACT
Relating to independent contractors; amending ORS 670.600.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 670.600 is amended to read:
670.600. { + (1) + } As used in { - various provisions
of - } ORS chapters 316, 448, 656, 657, 671 and 701, an
individual { - or business entity that - } { + who + }
performs labor or services for remuneration { - shall be - }
{ + is + } considered to perform the labor or services as an
'independent contractor' if the standards of this section are
met:
{ + (a) The individual is free from direction and control
over the means and manner of providing the labor or services,
subject to the right of a person or business entity for whom the
labor or services are provided to specify the desired results;
(b) Except as provided in subsection (2) of this section, the
individual is customarily engaged in an independently established
business. For purposes of this subsection, an individual is
considered to be customarily engaged in an independently
established business if any three of the following requirements
are met:
(A) The individual does not rely solely on one person or one
entity to obtain customers or the individual performs all labor
or services in the individual's own name or business name and
collects payment for the labor or services directly from the
customer;
(B) The individual assumes the risk of loss related to the
business or the performance of labor or services as shown by
factors that include fixed-price contracts, commission-based
earnings, responsibility to correct defective work,
responsibility for extension of warranties, negotiated
indemnification agreements or purchase of liability insurance,
performance bonds or errors and omissions insurance;
(C) The individual performs contracted labor or services for
two or more different persons or business entities within a
12-month period or routinely engages in business advertising,
solicitation or other marketing efforts reasonably calculated to
obtain new contracts to perform similar labor or services;
(D) The individual makes a significant investment in the
business, including but not limited to:
(i) Purchase of tools or equipment necessary to perform the
labor or services;
(ii) Payment for the premises or facilities where the labor or
services are performed; and
(iii) Payment for specialized training or licenses required to
perform the labor or services; or
(E) The individual has the authority to hire persons to perform
the labor or services and to fire those persons;
(c) The individual is licensed under ORS chapter 701 if the
individual performs labor or services for which licensure under
ORS chapter 701 is required; and
(d) The individual is personally responsible for obtaining
other licenses or certificates necessary to perform the labor or
services.
(2) Subsection (1)(b) of this section does not apply if the
individual files a Schedule F as part of the individual's
personal income tax return and the individual performs farm labor
or services that are reportable on Schedule C. + }
{ - (1) The individual or business entity providing the labor
or services is free from direction and control over the means and
manner of providing the labor or services, subject only to the
right of the person for whom the labor or services are provided
to specify the desired results; - }
{ - (2) The individual or business entity providing labor or
services is responsible for obtaining all assumed business
registrations or professional occupation licenses required by
state law or local government ordinances for the individual or
business entity to conduct the business; - }
{ - (3) The individual or business entity providing labor or
services furnishes the tools or equipment necessary for
performance of the contracted labor or services; - }
{ - (4) The individual or business entity providing labor or
services has the authority to hire and fire employees to perform
the labor or services; - }
{ - (5) Payment for the labor or services is made upon
completion of the performance of specific portions of the project
or is made on the basis of an annual or periodic retainer; - }
{ - (6) The individual or business entity providing labor or
services is licensed under ORS chapter 701, if the individual or
business entity provides labor or services for which licensure is
required; - }
{ - (7) Federal and state income tax returns in the name of
the business or a business Schedule C or farm Schedule F as part
of the personal income tax return were filed for the previous
year if the individual or business entity performed labor or
services as an independent contractor in the previous year;
and - }
{ - (8) The individual or business entity represents to the
public that the labor or services are to be provided by an
independently established business. Except when an individual or
business entity files a Schedule F as part of the personal income
tax returns and the individual or business entity performs farm
labor or services that are reportable on Schedule C, an
individual or business entity is considered to be engaged in an
independently established business when four or more of the
following circumstances exist: - }
{ - (a) The labor or services are primarily carried out at a
location that is separate from the residence of an individual who
performs the labor or services, or are primarily carried out in a
specific portion of the residence, which portion is set aside as
the location of the business; - }
{ - (b) Commercial advertising or business cards as is
customary in operating similar businesses are purchased for the
business, or the individual or business entity has a trade
association membership; - }
{ - (c) Telephone listing and service are used for the
business that is separate from the personal residence listing and
service used by an individual who performs the labor or
services; - }
{ - (d) Labor or services are performed only pursuant to
written contracts; - }
{ - (e) Labor or services are performed for two or more
different persons within a period of one year; or - }
{ - (f) The individual or business entity assumes financial
responsibility for defective workmanship or for service not
provided as evidenced by the ownership of performance bonds,
warranties, errors and omission insurance or liability insurance
relating to the labor or services to be provided. - }
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