1. People who provide service for pay are employees unless they meet the definition of independent contractor in Oregon Revised Statute 670.600
or another statutory exception.
2. Businesses do not withhold state or federal taxes from wages paid to independent contractors. Independent contractors receive a Form 1099 at the end of the year and are solely responsible for reporting and paying taxes, including state and federal income taxes, self-employment taxes, and transit taxes.
3. Independent contractors are not subject to wage and hour laws, such as those governing minimum wage, overtime pay, and rest periods. However, employees of an independent contractor are subject to those laws.
4. Independent contractors are not covered by workers’ compensation insurance. They are not entitled to receive benefits if they are injured on the job.
5. Independent contractors cannot use the wages they earn to qualify for unemployment insurance benefits when they are unemployed.
6. Independent contractors are generally not eligible for other employment benefits, such as health insurance and pension plans.
If you have any questions about whether you are properly classified as an employee or independent contractor, contact
• Employment Department Tax Section (503-947-1488) or,
• Oregon Department of Revenue (503-378-4988 in Salem or 1-800-356-4222 toll-free from an Oregon prefix)
ORS 670.600 applies only to the Oregon Department of Revenue
, Employment Department
, Department of Consumer & Business Services’ Workers’ Compensation Division
, Construction Contractors Board
, and Landscape Contractors Board
. These agencies require that the person performing the work must meet all the criteria of that law.
For information about Oregon labor law, please contact the Bureau of Labor and Industries