Which of the following situations would require a contractor to obtain workers compensation coverage in Oregon?
Correct Answer
D) Employing a secretary to answer phones
Any employee relationship, including office workers like secretaries, requires workers compensation coverage in Oregon.
Why This Is the Correct Answer
In Oregon, any worker who is an employee—regardless of the nature of their work—must be covered by workers compensation. A secretary who answers phones is an employee. The type of work (office vs. field) does not matter. Oregon's workers compensation law broadly covers all employees, and office staff are no exception.
Why the Other Options Are Wrong
Option A: Using only family members who are also business owners
Using only family members who are also business owners is generally exempt. Family members who are officers or owners of the business may be exempt from workers compensation requirements under Oregon law, as they are not considered employees in the traditional sense.
Option B: Hiring a corporate entity as a subcontractor
Hiring a corporate entity as a subcontractor does not require the general contractor to provide workers compensation for that entity's employees. The corporate subcontractor bears responsibility for covering its own workers. Contracting with a business entity (not an individual) shifts that obligation.
Option C: Working exclusively with independent contractors who provide their own tools
Working exclusively with independent contractors who provide their own tools is generally exempt, provided those individuals truly meet the legal definition of independent contractors. However, Oregon applies a strict multi-factor test to determine true independent contractor status—'providing their own tools' alone is not sufficient, but when genuinely independent, no coverage is required.
Memory Technique
Oregon workers comp covers everyone on payroll—from the roofer to the receptionist. If you issue a W-2, you provide workers comp. The desk, the hard hat, and the apron are all covered the same way.
More Oregon Questions
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An employee is injured on a job site. The contractor's workers compensation premium was $2,400 annually. If they were operating without coverage, what is the minimum penalty multiplier applied to the premium?
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Under ORS 701, what is the maximum amount a residential contractor can collect as a down payment before starting work?
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Previous Question
An Oregon contractor has 3 employees with a total annual payroll of $180,000. If the workers' compensation rate for their classification is $2.50 per $100 of payroll, what is their annual premium?
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A homeowner in Oregon discovers that their contractor performed work without a valid CCB license. The work was completed 18 months ago and cost $12,000. What remedy is available under ORS 701?