Oregon Revised Statutes Chapter 701 § 701.035 — Applicant required to be independent contractor to be eligible for license;

Applicant required to be independent contractor to be eligible for license; classes of licenses. (1) An applicant must qualify as an independent contractor under ORS 670.600 to be eligible for a license with the Construction Contractors Board. (2) The board shall establish two classes of independent contractor: (a) The nonexempt class is composed of the following entities: (A) Sole proprietorships, partnerships, corporations and limited liability companies: (i) With one or more employees; or (ii) That utilize one or more workers supplied by a worker leasing company. (B) Partnerships, corporations and limited liability companies with more than two partners, corporate officers or members, if any of the partners, corporate officers or members are not part of the same family and related as parents, spouses, sisters, brothers, daughters or sons, daughters-in-law or sons-in-law or grandchildren. (b) The exempt class is composed of all sole proprietorships, partnerships, corporations and limited liability companies that do not qualify as nonexempt. (3) If a person who is licensed as exempt under subsection (2)(b) of this section hires one or more employees, utilizes one or more workers supplied by a worker leasing company or falls into any of the categories set out in subsection (2)(a)(B) of this section, the person is subject to penalties under ORS 701.992 for improper licensing. If a person who is licensed as exempt under subsection (2)(b) of this section hires one or more employees, or utilizes one or more workers supplied by a worker leasing company, the person is also subject to licensing sanctions under ORS 701.098. The person must reapply to the board in the correct class. (4) The decision of the board that a person is an independent contractor applies only when the person is performing work of the nature described in ORS 701.021. (5) A person that is within the exempt class described in subsection (2)(b) of this section and is licensed as a commercial contractor shall procure and maintain workers’ compensation insurance as authorized by ORS 656.128. [1989 c.870 §4; 1995 c.216 §1; 1999 c.402 §13; 2007 c.836 §15; 2009 c.408 §§2,3; 2013 c.300 §10] Note: The amendments to 701.035 by section 19, chapter 78, Oregon Laws 2025, become operative July 1, 2027. See section 23, chapter 78, Oregon Laws 2025. The text that is operative on and after July 1, 2027, is set forth for the user’s convenience. 701.035. (1) An applicant must qualify as an independent contractor under ORS 670.600 to be eligible for a license with the Construction Contractors Board. (2) The board shall establish two classes of independent contractor: (a) The nonexempt class is composed of the following entities: (A) Sole proprietorships, partnerships, corporations and limited liability companies: (i) With one or more employees; or (ii) That have a PEO relationship. (B) Partnerships, corporations and limited liability companies with more than two partners, corporate officers or members, if any of the partners, corporate officers or members are not part of the same family and related as parents, spouses, sisters, brothers, daughters or sons, daughters-in-law or sons-in-law or grandchildren. (b) The exempt class is composed of all sole proprietorships, partnerships, corporations and limited liability companies that do not qualify as nonexempt. (3)(a) If a person who is licensed as exempt under subsection (2)(b) of this section hires one or more employees, enters into a PEO relationship or falls into any of the categories set out in subsection (2)(a)(B) of this section, the person is subject to penalties under ORS 701.992 for improper licensing. (b) If a person who is licensed as exempt under subsection (2)(b) of this section hires one or more employees, or enters into a PEO relationship, the person is also subject to licensing sanctions under ORS 701.098. (c) A person described in this subsection must reapply to the board in the correct class. (4) The decision of the board that a person is an independent contractor applies only when the person is performing work of the nature described in ORS 701.021. (5) A person that is within the exempt class described in subsection (2)(b) of this section and is licensed as a commercial contractor shall procure and maintain workers’ compensation insurance as authorized by ORS 656.128.