Which workers are exempt from Oregon workers' compensation requirements?
Correct Answer
C) Sole proprietors with no employees
Sole proprietors with no employees are exempt from workers' compensation requirements in Oregon.
Why This Is the Correct Answer
Option C is correct. In Oregon, sole proprietors who have no employees are exempt from the workers' compensation insurance requirement. Since there are no employees to cover, the obligation to carry workers' comp does not apply. They may voluntarily elect coverage for themselves, but it is not mandatory.
Why the Other Options Are Wrong
Option A: Employees working less than 20 hours per week
Oregon does not grant an exemption based on hours worked per week. An employee working less than 20 hours is still a covered worker under Oregon workers' compensation law. There is no part-time hour threshold that removes the employer's obligation.
Option B: All part-time employees
All part-time employees are not categorically exempt. Oregon requires workers' compensation coverage for employees regardless of whether they work part-time or full-time. The exemption is not tied to part-time status.
Option D: Independent contractors with their own insurance
Independent contractors who carry their own insurance are not automatically exempt from the workers' compensation system in the way this option implies. Oregon has specific tests to determine worker classification, and misclassifying an employee as an independent contractor does not eliminate employer liability.
Memory Technique
Exempt = 'Solo and alone.' A sole proprietor with ZERO employees is the clearest exempt category. The moment you hire even one employee, workers' comp is required. Think: 'One employee = workers' comp needed.'
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Previous Question
An Oregon contractor's employee is injured on the job, resulting in $25,000 in medical costs and 6 weeks of lost wages at $800/week. What is the contractor's liability if they have proper workers compensation coverage?
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A subcontractor completes electrical work worth $8,500 on March 15th. The general contractor fails to pay. Under ORS 87, what is the deadline to file a lien claim?