The state of Oregon has very specific guidelines on what constitutes an Independent Contractor. Our incentive programs track these guidelines and require that all regular employees are paid via a third party payroll system in order for any labor to qualify.
Who is an Independent Contractor and Who is an Employee?
A worker who provides services for remuneration generally will be considered an employee by the courts and state regulatory agencies, unless that worker meets the criteria required of an “independent contractor” (or other exception) with the emphasis falling on the word “independent.”
In making classification determinations, the courts and regulatory agencies weigh certain facts to determine:
1. whether the worker in question is free from direction and control; and/or
2. whether the worker is, as a matter of economic reality, independent of the business to which services are being provided.
Here is are a few links:
While not all agencies utilize the same criteria, you can find an overview and other links on this issue here for the Oregon Employment Department, Department of Revenue, Department of Consumer and Business Services, Bureau of Labor and Industries, Construction Contractors Board, Landscape Contractors Board, and the Department of Justice. These agencies frequently communicate and share information with each other to collaborate on cases and provide information about compliance issues to Oregonians.
You can also find an Economic Realities Test utilized by the Bureau of Labor and Industries here.
The classification of below-the-line crew as 1099 Independent Contractors is a recurring issue with local crew members and unions alike as, amongst other things, it does not pay required payroll taxes at the time of employment for regularly scheduled workers which is one of the requirements of the state incentive programs. In many cases it is also in violation of Oregon state employment policy and laws.
You can find out more about this from BOLI by going here.