Oregon Revised Statutes

Or. Rev. Stat. § 670.600 (2026)

Independent contractor defined

✓ current as of May 2026

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670.600 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.

(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 person’s 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;

(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

(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]

Notes of Decisions

Cited in 65 cases (3 in the last 5 years), 1993–2026 · leading case: Acn Opportunity, LLC v. Emp't Dep't, 418 P.3d 719 (Or. 2018).

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Acn Opportunity, LLC v. Emp't Dep't, 418 P.3d 719 (Or. 2018). · cites it 55× “The Employment Department determined that ACN was an employer and thus was required to pay unemployment insurance tax on earnings that ACN paid to the IBOs for their sales work. An administrative law judge (ALJ) affirmed that determination, concluding that the IBOs did not fall…”

S-W Floor Cover Shop v. Nat'l Council on Comp. Ins., 872 P.2d 1 (Or. 1994). · cites it 22× “This case requires the court to determine how the statutory definition of “independent contractor” found in ORS 670.600, enacted in 1989, has affected statutory provisions for determining when a person is subject to Oregon’s workers’ compensation law, ORS chapter 656.”

Avanti Press, Inc. v. Emp. Dep't Tax Section, 274 P.3d 190 (Or. Ct. App. 2012). · cites it 23× “040(1) (“Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is *456 shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is…”

Portland Columbia Symphony v. Emp. Dep't, 310 P.3d 1139 (Or. Ct. App. 2013). · cites it 34× “040(1) (“Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is…”

Kaib's Roving R.Ph. Agency, Inc. v. Emp. Dep't, 984 P.2d 886 (Or. Ct. App. 1999). · cites it 29× “We conclude that the Employment Department erred in its application of ORS 670.600 and remand. ORS 183.482(8)(a).”

Broadway Cab LLC v. Emp. Dep't, 364 P.3d 338 (Or. 2015). · cites it 14× “However, if the employer can establish that an individual is an independent contractor, as that term is defined in ORS 670.600, then the employer is not liable for taxes on wages paid to that individual.”

Compressed Pattern, LLC v. Emp. Dep't Tax Section, 293 P.3d 1053 (Or. Ct. App. 2012). · cites it 23× “040(1) (“Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is…”

Petersen v. Emp. Dep't, 898 P.2d 210 (Or. Ct. App. 1995). · cites it 40× “040(1) has provided: “Services performed by an individual for remuneration are deemed to be employment subject to this chapter and ORS chapter 657A unless and until it is shown to the satisfaction of the Director of the Employment Department that: “(a) Such individual is an…”

HDG Enter., Inc. v. Filings of the Nat'l Council on Comp. Ins., 856 P.2d 1037 (Or. Ct. App. 1993). · cites it 14× “It affirmed the audit with the exception of the premium assessed for one installer in the fourth quarter and ordered SAIF to rebill employer. Employer assigns error to DIF’s ruling.”

Trabosh v. Washington Cnty., 915 P.2d 1011 (Or. Ct. App. 1996). · cites it 9× “Under that exception, if the partnership performs labor or services under a contract, it must qualify as an independent contractor under ORS 670.600 in order for its partners to be exempt.”

Canvasser Servs., Inc. v. Emp. Dep't, 987 P.2d 562 (Or. Ct. App. 1999). · cites it 18× “The ALJ concluded that the circula-tors were not independent contractors or independently established businesses, and Canvasser petitioned this court for judicial review.”

Kaib's Roving R.Ph. Agency, Inc. v. Emp. Dep't, 77 P.3d 327 (Or. Ct. App. 2003). · cites it 10× “Petitioner requested a hearing, and the hearing officer upheld the assessment. Petitioner then sought judicial review, and we reversed and remanded the hearing officer's order on the ground that the Department had not adequately considered the effect of a previous decision of…”

Show all 65 citing cases →

— Or. Rev. Stat. § 670.600(1) — 8 cases

S-W Floor Cover Shop v. Nat'l Council on Comp. Ins., 872 P.2d 1 (Or. 1994). “This case requires the court to determine how the statutory definition of “independent contractor” found in ORS 670.600, enacted in 1989, has affected statutory provisions for determining when a person is subject to Oregon’s workers’ compensation law, ORS chapter 656.”

Stamp v. Dep't of Consum. & Bus. Servs., 9 P.3d 729 (Or. Ct. App. 2000).

Petersen v. Emp. Dep't, 898 P.2d 210 (Or. Ct. App. 1995). “040(1) has provided: “Services performed by an individual for remuneration are deemed to be employment subject to this chapter and ORS chapter 657A unless and until it is shown to the satisfaction of the Director of the Employment Department that: “(a) Such individual is an…”

Kaib's Roving R.Ph. Agency, Inc. v. Emp. Dep't, 984 P.2d 886 (Or. Ct. App. 1999). “We conclude that the Employment Department erred in its application of ORS 670.600 and remand. ORS 183.482(8)(a).”

Pacificab Co. v. Emp. Dep't, 69 P.3d 774 (Or. Ct. App. 2003).

— Or. Rev. Stat. § 670.600(1)(a) — 1 case

— Or. Rev. Stat. § 670.600(1993) — 1 case

Stamp v. Dep't of Consum. & Bus. Servs., 9 P.3d 729 (Or. Ct. App. 2000).

— Or. Rev. Stat. § 670.600(2) — 25 cases

Portland Columbia Symphony v. Emp. Dep't, 310 P.3d 1139 (Or. Ct. App. 2013). “040(1) (“Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is…”

Avanti Press, Inc. v. Emp. Dep't Tax Section, 274 P.3d 190 (Or. Ct. App. 2012). “040(1) (“Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is *456 shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is…”

Broadway Cab LLC v. Emp. Dep't, 364 P.3d 338 (Or. 2015). “However, if the employer can establish that an individual is an independent contractor, as that term is defined in ORS 670.600, then the employer is not liable for taxes on wages paid to that individual.”

Acn Opportunity, LLC v. Emp't Dep't, 418 P.3d 719 (Or. 2018). “The Employment Department determined that ACN was an employer and thus was required to pay unemployment insurance tax on earnings that ACN paid to the IBOs for their sales work. An administrative law judge (ALJ) affirmed that determination, concluding that the IBOs did not fall…”

Kirwan v. Dept. of Rev., 21 Or. Tax 424 (Or. T.C. 2014).

— Or. Rev. Stat. § 670.600(2)(a) — 13 cases

Agat Transp., Inc. v. Emp. Dep't, 305 P.3d 122 (Or. Ct. App. 2013).

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

Chelius v. Emp. Dep't, 308 P.3d 290 (Or. Ct. App. 2013).

— Or. Rev. Stat. § 670.600(2)(b) — 13 cases

Compressed Pattern, LLC v. Emp. Dep't Tax Section, 293 P.3d 1053 (Or. Ct. App. 2012). “040(1) (“Services performed by an individual for remuneration are deemed to be employment subject to this chapter unless and until it is shown to the satisfaction of the Director of the Employment Department that the individual is an independent contractor, as that term is…”

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

— Or. Rev. Stat. § 670.600(2)(c) — 1 case

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

— Or. Rev. Stat. § 670.600(2)(d) — 3 cases

Broadway Cab LLC v. Emp. Dep't, 336 P.3d 12 (Or. Ct. App. 2014).

CEVA Freight, LLC v. Emp. Dep't, 379 P.3d 776 (Or. Ct. App. 2016).

— Or. Rev. Stat. § 670.600(3) — 18 cases

— Or. Rev. Stat. § 670.600(3)(a) — 9 cases

ACN Opportunity, LLC v. Emp. Dep't, 377 P.3d 638 (Or. Ct. App. 2016).

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

Broadway Cab LLC v. Emp. Dep't, 336 P.3d 12 (Or. Ct. App. 2014).

— Or. Rev. Stat. § 670.600(3)(a)(A) — 5 cases

ACN Opportunity, LLC v. Emp. Dep't, 377 P.3d 638 (Or. Ct. App. 2016).

Broadway Cab LLC v. Emp. Dept. (Or. 2015).

— Or. Rev. Stat. § 670.600(3)(a)(B) — 4 cases

Broadway Cab LLC v. Emp. Dep't, 336 P.3d 12 (Or. Ct. App. 2014).

ACN Opportunity, LLC v. Emp. Dep't, 377 P.3d 638 (Or. Ct. App. 2016).

— Or. Rev. Stat. § 670.600(3)(b) — 5 cases

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

CEVA Freight, LLC v. Emp. Dep't, 379 P.3d 776 (Or. Ct. App. 2016).

Kirwan v. Dep't of Revenue (Or. T.C. 2012).

— Or. Rev. Stat. § 670.600(3)(b)(B) — 1 case

— Or. Rev. Stat. § 670.600(3)(b)(D) — 2 cases

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

Kirwan v. Dep't of Revenue (Or. T.C. 2012).

— Or. Rev. Stat. § 670.600(3)(c) — 6 cases

Ponderosa Props., LLC v. Emp. Dep't, 325 P.3d 762 (Or. Ct. App. 2014).

Broadway Cab LLC v. Emp. Dep't, 336 P.3d 12 (Or. Ct. App. 2014).

Kirwan v. Dep't of Revenue (Or. T.C. 2012).

— Or. Rev. Stat. § 670.600(3)(d) — 4 cases

Portland Columbia Symphony v. Emp. Dep't, 390 P.3d 1093 (Or. Ct. App. 2017).

CEVA Freight, LLC v. Emp. Dep't, 379 P.3d 776 (Or. Ct. App. 2016).

Kirwan v. Dep't of Revenue (Or. T.C. 2012).

— Or. Rev. Stat. § 670.600(3)(d)(C) — 1 case

Portland Columbia Symphony v. Emp. Dep't, 390 P.3d 1093 (Or. Ct. App. 2017).

— Or. Rev. Stat. § 670.600(3)(e) — 11 cases

ACN Opportunity, LLC v. Emp. Dep't, 377 P.3d 638 (Or. Ct. App. 2016).

— Or. Rev. Stat. § 670.600(4) — 2 cases

Pacificab Co. v. Emp. Dep't, 69 P.3d 774 (Or. Ct. App. 2003).

Port Blakely Tree Farms v. Nat'l Council on Comp. Ins., 865 P.2d 387 (Or. Ct. App. 1993).

— Or. Rev. Stat. § 670.600(5) — 1 case

Pacificab Co. v. Emp. Dep't, 69 P.3d 774 (Or. Ct. App. 2003).

— Or. Rev. Stat. § 670.600(6) — 2 cases

Randall v. Ocean View Constr. Co., 100 P.3d 1088 (Or. Ct. App. 2004).

Church at 295 S. 18th St., St. Helens v. Emp. Dep't, 28 P.3d 1185 (Or. Ct. App. 2001).

— Or. Rev. Stat. § 670.600(7) — 2 cases

HDG Enter., Inc. v. Filings of the Nat'l Council on Comp. Ins., 856 P.2d 1037 (Or. Ct. App. 1993). “It affirmed the audit with the exception of the premium assessed for one installer in the fourth quarter and ordered SAIF to rebill employer. Employer assigns error to DIF’s ruling.”

Canvasser Servs., Inc. v. Emp. Dep't, 987 P.2d 562 (Or. Ct. App. 1999). “The ALJ concluded that the circula-tors were not independent contractors or independently established businesses, and Canvasser petitioned this court for judicial review.”

— Or. Rev. Stat. § 670.600(8) — 3 cases

Pacificab Co. v. Emp. Dep't, 69 P.3d 774 (Or. Ct. App. 2003).

— Or. Rev. Stat. § 670.600(8)(a) — 2 cases

— Or. Rev. Stat. § 670.600(8)(b) — 3 cases

Pacificab Co. v. Emp. Dep't, 69 P.3d 774 (Or. Ct. App. 2003).

— Or. Rev. Stat. § 670.600(8)(c) — 1 case

— Or. Rev. Stat. § 670.600(8)(d) — 1 case

— Or. Rev. Stat. § 670.600(8)(e) — 1 case

— Or. Rev. Stat. § 670.600(8)(f) — 2 cases

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