The Gig Economy’s Legal Landscape: Are You an Employee or Contractor in Oregon?

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The Gig Economy's Legal Landscape: Are You an Employee or Contractor in Oregon?

Oregon uses specific tests to classify gig workers as employees or independent contractors, focusing on the reality of the work relationship rather than labels. Classification varies by legal context, such as wage/hour laws versus civil rights, impacting rights like minimum wage, overtime, and protections.​

Key Classification Tests

Oregon applies different multi-factor tests depending on the issue.

  • Economic Realities Test (wage/hour, BOLI): Assesses economic dependence on the business. Factors include: integral role in business, employer control, relationship permanency, worker skill/initiative, profit/loss opportunity determined by employer, and relative investments. Gig workers economically dependent on platforms like Uber are likely employees.​
  • Right-to-Control Test (civil rights, discrimination, leave): Weighs behavioral/financial control and relationship type. Includes direct control evidence, payment method, equipment furnishing, and firing rights. Strong employer control points to employee status.​
  • Relative Nature of Work Test (workers’ comp): Evaluates if work is integral to the business.​

No uniform ABC test like California’s applies statewide for gig work; TNCs (e.g., Uber, Lyft) do not dictate status.​

Gig Economy Specifics

Oregon’s TNC statute (ORS §742.518) covers ride-sharing apps but leaves classification to these tests, allowing possible mixed status (e.g., contractor for one purpose, employee for another). SB1166 (proposed 2025) aimed to boost rideshare driver pay and protections without reclassifying them, treating them as contractors.

TestApplies ToKey Factor ExampleGig Implication
Economic RealitiesWages, overtimeEconomic dependenceApp-dependent drivers often employees
Right-to-ControlDiscrimination, leaveControl over workApp scheduling = employee
Relative Nature â€‹Workers’ compIntegral to businessDriving core to TNC = employee

Recent Updates

BOLI updated guidelines under ORS 670.600 for worker distinction, emphasizing gig protections like minimum wage. As of 2026, no broad reclassification law passed for platforms; consult BOLI for advice.

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