Oregon Code § 670.600·Enacted ·Last updated March 01, 2026
Statute Text
Independent contractor defined.
(1) As used in this section:
(a) Individual
means a natural person.
(b) Person has
the meaning given that term in ORS 174.100.
(c) Services
means labor or services.
(2) As used in
ORS chapters 316, 656, 657, 671 and 701, independent contractor means a
person who provides services for remuneration and who, in the provision of the
services:
(a) 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;
(b) Except as
provided in subsection (4) of this section, is customarily engaged in an
independently established business;
(c) Is licensed
under ORS chapter 671 or 701 if the person provides services for which a
license is required under ORS chapter 671 or 701; and
(d) Is
responsible for obtaining other licenses or certificates necessary to provide
the services.
(3) For purposes
of subsection (2)(b) of this section, a person is considered to be customarily
engaged in an independently established business if any three of the following
requirements are met:
(a) The person
maintains a business location:
(A) That is
separate from the business or work location of the person for whom the services
are provided; or
(B) That is in a
portion of the persons residence and that portion is used primarily for the
business.
(b) The person
bears the risk of loss related to the business or the provision of services as
shown by factors such as:
(A) The person
enters into fixed-price contracts;
(B) The person is
required to correct defective work;
(C) The person
warrants the services provided; or
(D) The person
negotiates indemnification agreements or purchases liability insurance,
performance bonds or errors and omissions insurance.
(c) The person
provides contracted services for two or more different persons within a
12-month period, or the person routinely engages in business advertising,
solicitation or other marketing efforts reasonably calculated to obtain new
contracts to provide similar services.
(d) The person
makes a significant investment in the business, through means such as:
(A) Purchasing
tools or equipment necessary to provide the services;
(B) Paying for
the premises or facilities where the services are provided; or
(C) Paying for
licenses, certificates or specialized training required to provide the
services.
(e) The person
has the authority to hire other persons to provide or to assist in providing
the services and has the authority to fire those persons.
(4) Subsection
(2)(b) of this section does not apply if the person files a Schedule F as part
of an income tax return and the person provides farm labor or farm services
that are reportable on Schedule C of an income tax return.
(5) For purposes
of determining whether an individual provides services as an independent
contractor:
(a) The creation
or use of a business entity, such as a corporation or a limited liability
company, by an individual for the purpose of providing services does not, by
itself, establish that the individual provides services as an independent
contractor.
(b) When the
individual provides services through a business entity, such as a corporation
or a limited liability company, the provisions in subsection (2), (3) or (4) of
this section may be satisfied by the individual or the business entity. [Formerly
701.025; 1997 c.398 §2; 1999 c.402 §9; 2003 c.704 §5; 2005 c.533 §§1,2]