Oregon Revised Statutes

Or. Rev. Stat. § 657.044 (2026)

Employment; service by partners and corporate officers and directors who are family members and by certain sole corporate officers and directors excluded; election; exceptions

✓ current as of May 2026
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      657.044 Employment; service by partners and corporate officers and directors who are family members and by certain sole corporate officers and directors excluded; election; exceptions. (1) As used in this chapter, “employment” does not include service performed for:

      (a) A corporation by corporate officers who:

      (A) Are directors of the corporation;

      (B) Have a substantial ownership interest in the corporation; and

      (C) Are members of the same family.

      (b) A corporation by an individual who is the sole corporate officer and director of the corporation and who has a substantial ownership interest in the corporation.

      (c) A limited liability company by a member, including members who are managers, as defined in ORS 63.001.

      (d) A limited liability partnership by a partner as described in ORS chapter 67.

      (2)(a) The exclusion under subsection (1)(a) or (b) of this section is effective only if the corporation elects not to provide coverage for the individuals described respectively in subsection (1)(a) or (b) of this section.

      (b) The election must be in writing and is effective on the first day of the current calendar quarter or, upon request, on the first day of the calendar quarter preceding the calendar quarter in which the request is submitted.

      (3) The provisions of this section do not apply to service performed for:

      (a) A nonprofit employing unit;

      (b) This state;

      (c) A political subdivision of this state; or

      (d) An Indian tribe.

      (4) As used in this section, “members of the same family” means persons who are members of a family as parents, stepparents, grandparents, spouses, sons-in-law, daughters-in-law, brothers, sisters, children, stepchildren, adopted children or grandchildren. [1995 c.220 §2; 1997 c.646 §15; 1999 c.59 §195; 2001 c.572 §3; 2003 c.792 §1; 2005 c.218 §9; 2009 c.79 §1; 2013 c.311 §1]

Notes of Decisions
Cited in 4 cases, 2007–2009 · leading case: Necanicum Inv. Co. v. Emp. Dep't, 164 P.3d 1197 (Or. Ct. App. 2007).
Necanicum Inv. Co. v. Emp. Dep't, 164 P.3d 1197 (Or. Ct. App. 2007). · cites it 3× “ORS 657.044(l)(a). 6 Under ORS 657.025, an “employer” refers to “any employing unit which employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which its total payroll during any calendar quarter…”
Emp. Dep't v. Stock Secrets, Inc., 150 P.3d 1090 (Or. Ct. App. 2007). · cites it 10× “Morsa requested that the department exempt the corporation from paying unemployment insurance taxes pursuant to ORS 657.044, which gives corporations an exemption for work performed by corporate officers who are directors of the corporation, have a substantial ownership in it,…”
Necanicum Inv. Co. v. Emp. Dep't, 190 P.3d 368 (Or. 2008). “For example, ORS 657.044 provides, in part: “(1) As used in this chapter, ‘employment’ does not include service performed for: “(a) A corporation by corporate officers who are directors of the corporation, who have a substantial ownership interest in the corporation and who are…”
Emp. Departmet v. Nat'l Maint. Contractors of Oregon, Inc., 204 P.3d 151 (Or. Ct. App. 2009). “*486 After examining various provisions of ORS chapter 60 (governing corporations), as well as ORS 657.044 (establishing an unemployment insurance and taxation exemption for certain corporate officers who are also directors), the court held: “Informed by the legislature’s…”
Or. Rev. Stat. § 657.044(1)(a): 1 case
Emp. Dep't v. Stock Secrets, Inc., 150 P.3d 1090 (Or. Ct. App. 2007). “Morsa requested that the department exempt the corporation from paying unemployment insurance taxes pursuant to ORS 657.044, which gives corporations an exemption for work performed by corporate officers who are directors of the corporation, have a substantial ownership in it,…”
Or. Rev. Stat. § 657.044(3): 1 case
Emp. Dep't v. Stock Secrets, Inc., 150 P.3d 1090 (Or. Ct. App. 2007). “Morsa requested that the department exempt the corporation from paying unemployment insurance taxes pursuant to ORS 657.044, which gives corporations an exemption for work performed by corporate officers who are directors of the corporation, have a substantial ownership in it,…”
Or. Rev. Stat. § 657.044(l)(a): 1 case
Necanicum Inv. Co. v. Emp. Dep't, 164 P.3d 1197 (Or. Ct. App. 2007). “ORS 657.044(l)(a). 6 Under ORS 657.025, an “employer” refers to “any employing unit which employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which its total payroll during any calendar quarter…”
Or. Rev. Stat. § 657.044(l)(b): 1 case
Necanicum Inv. Co. v. Emp. Dep't, 164 P.3d 1197 (Or. Ct. App. 2007). “ORS 657.044(l)(a). 6 Under ORS 657.025, an “employer” refers to “any employing unit which employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which its total payroll during any calendar quarter…”
Or. Rev. Stat. § 657.044(l)(c): 1 case
Necanicum Inv. Co. v. Emp. Dep't, 164 P.3d 1197 (Or. Ct. App. 2007). “ORS 657.044(l)(a). 6 Under ORS 657.025, an “employer” refers to “any employing unit which employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which its total payroll during any calendar quarter…”
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