According to Oregon workers compensation requirements, which of the following contractors must carry workers compensation insurance?
Correct Answer
D) A contractor with one part-time employee working 10 hours per week
Oregon requires workers compensation insurance for any contractor with employees, regardless of hours worked or employment status.
Why This Is the Correct Answer
Oregon law requires workers compensation coverage for any contractor who has employees, regardless of how many hours those employees work or whether they are part-time. A contractor with even one part-time employee working 10 hours per week must carry coverage.
Why the Other Options Are Wrong
Option A: A contractor who only uses independent contractors
Using independent contractors does not eliminate the workers comp obligation if any of those workers are legally classified as employees. Misclassifying employees as independent contractors is itself a violation in Oregon. However, a contractor who genuinely uses only true independent contractors (and has no employees) may not need coverage.
Option B: A sole proprietor with no employees
A sole proprietor with no employees is generally exempt from mandatory workers comp coverage for themselves in Oregon, though they may voluntarily elect coverage. The key is having no employees — once you hire even one, coverage is mandatory.
Option C: A contractor who only works on their own property
Working on one's own property does not create an exemption from workers compensation requirements. If employees are performing the work, coverage is required regardless of whose property is involved.
Memory Technique
One employee = full coverage required. Oregon workers comp has no minimum-hours or minimum-headcount exemption. Think: 'If they work for you, you insure them — period.'
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