What is the Oregon workers' compensation penalty for contractors who fail to carry required coverage?
Correct Answer
C) $100 per day fine plus all claim costs
Oregon imposes a $100 per day penalty plus responsibility for all workers' compensation claim costs when contractors fail to carry required coverage.
Why This Is the Correct Answer
Oregon law imposes a $100 per day civil penalty for each day a contractor operates without required workers' compensation coverage. In addition, the uninsured contractor becomes personally liable for all workers' compensation claim costs that would have been covered by insurance. This two-part penalty ($100/day + full claim costs) is the correct statutory consequence.
Why the Other Options Are Wrong
Option A: License revocation only
License revocation only is incorrect because Oregon's penalty structure for missing workers' compensation coverage is primarily financial, not just administrative. While CCB may take license action, the statute specifically imposes the daily fine and claim cost liability — revocation alone understates the financial exposure.
Option B: $500 fine plus coverage costs
$500 fine plus coverage costs does not match Oregon's statutory penalty. The daily accruing $100 fine is the correct figure, and the contractor is liable for claim costs (not merely 'coverage costs'), which can far exceed a flat $500.
Option D: $1,000 fine and license suspension
$1,000 fine and license suspension misrepresents both the fine amount and the primary penalty type. Oregon does not impose a flat $1,000 fine for this violation; the $100/day structure means the total fine grows with each day of non-compliance.
Memory Technique
Picture a meter running at $100/day like a parking ticket that never stops — plus you personally pay every injured worker's bills. '$100 a day keeps the compliance away' helps lock in the daily rate.
More Oregon Questions
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Calculate the maximum lien amount a material supplier can claim under Oregon law for materials delivered to a residential construction project with a total contract value of $85,000, where the supplier provided $15,000 in materials.
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A contractor begins work on Monday and completes it on Friday. Under ORS 87, what is the last day they can file a construction lien?