Oregon’s ‘Independently Established Business’ Requirement for Independent Contractors

Businesses constantly are challenged with correctly classifying workers as either employees or independent contractors. Of course, employers have good reason to be vigilant: misclassification can result in costly audits, assessments of back taxes, and stiff penalties. Under the Oregon independent contractor statute, the “independent contractor” must be engaged in an “independently established business.” This last term is interpreted restrictively and strictly by the state’s courts.