Correctly classifying workers as either employees or independent contractors can be complicated and difficult. Multiple and different classification tests apply to a single working relationship – including, but not limited to, distinct tests for: (1) workers’ compensation coverage and premiums; (2) wage-and-hour and civil rights issues; (3) federal taxes; and (4) state payroll and unemployment taxes. These tests are often subjective, and at times can conflict. Additionally, misclassifying a worker as an independent contractor can result in costly audits, assessments of back taxes, and stiff penalties.
Home > State Law Articles > Oregon > General (OR) > Oregon Supreme Court Case Reminds Businesses about the Complexity of Independent Contractor Classification