Bill > SB704

This bill establishes new guidelines for determining whether a worker should be classified as an employee or an independent contractor in Oregon. The bill requires state agencies administering various labor and tax-related laws to use a multi-factor test when classifying workers. These factors include the degree of control exercised by the hiring entity, the worker's capital investment, opportunities for profit and loss, required skills, the permanence of the work relationship, and whether the work is integral to the business. Importantly, the bill creates a rebuttable presumption that an individual performing work for remuneration is an employee, meaning the burden of proof is on the hiring entity to demonstrate that the worker is an independent contractor. The agencies responsible for labor, tax, and employment laws are directed to jointly develop rules to ensure consistent application of these worker classification criteria. By providing a comprehensive framework for worker classification, the bill aims to protect workers' rights and provide clearer standards for businesses in determining employment status across different state agencies.

Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB704