2015 ORS § 657.030¹

Employment generally
  • educational, hospital, nursing, student service exclusions

(1) As used in this chapter, except as provided in ORS 657.035 (Employment), 657.040 (Employment) and 657.043 (Employment) to 657.094 (Employment), employment means service for an employer, including service in interstate commerce, within or outside the United States, performed for remuneration or under any contract of hire, written or oral, express or implied.

(2) Notwithstanding any other provisions of this chapter, employment includes service that is:

(a) Subject to the tax imposed by the Federal Unemployment Tax Act; or

(b) Required to be covered under this chapter as a condition for employers to receive a full tax credit against the tax imposed by the Federal Unemployment Tax Act.

(3) Notwithstanding subsections (1) and (2) of this section, employment does not include:

(a) Service performed in the employ of a school, college or university, if the service is performed by a student who is enrolled and is regularly attending classes at the school, college or university, or by the spouse of the student, if the spouse is advised at the time the spouse commences to perform the service, that the employment of the spouse is provided under a program to provide financial assistance to the student by the school, college, or university, and the employment is not covered by any program of unemployment insurance.

(b) Service performed in the employ of a hospital, if the service is performed by a patient of the hospital.

(c) Service performed as a student nurse in the employ of a hospital or a nurses training school by an individual who is enrolled in a nurses training school chartered or approved pursuant to the laws of this state.

(d) Service performed by an individual who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at the institution, that combines academic instruction with work experience, if the service is an integral part of the program, and the program has been approved by the Director of the Employment Department, and the institution has so certified to the employer, except that this paragraph does not apply to service performed in a program established for or on behalf of an employer or group of employers.

(e) Service performed by a full-time student in the employ of an organized camp described in section 3306(c)(20) of the Internal Revenue Code:

(A) If the camp:

(i) Did not operate for more than seven months in the calendar year and did not operate more than seven months in the preceding calendar year; or

(ii) Had average gross receipts for any six months in the preceding calendar year that were not more than 33-1/3 percent of its average gross receipts for the other six months in the preceding calendar year; and

(B) If the full-time student performed services in the employ of the camp for less than 13 calendar weeks in the calendar year.

(4) As used in subsection (3)(e) of this section, an individual shall be treated as a full-time student for any period:

(a) During which the individual is enrolled as a full-time student at an educational institution; or

(b) That is between academic years or terms if:

(A) The individual was enrolled as a full-time student at an educational institution for the immediately preceding academic year or term; and

(B) There is a reasonable assurance that the individual will be enrolled for the immediately succeeding academic year or term after the period described in subparagraph (A) of this paragraph. [Amended by 1959 c.405 §2; 1971 c.463 §5; 1975 c.257 §2; 1981 c.77 §2; 1987 c.263 §1; 2011 c.106 §3]

Notes of Decisions

Words service and remunera­tion, as used in this sec­tion, are broad descriptive terms evidencing legislative intent to give law broad and liberal coverage. Petrol Stops NW v. Morgan, 10 Or App 620, 501 P2d 341 (1972); Gross v. Employ­ment Depart­ment, 237 Or App 671, 240 P3d 1130 (2010)

Owner-operator cab driver is not engaged in employ­ment rela­tionship with cab company where company does not remunerate driver but instead, driver pays fee to cab company for certain services. DeRoos v. Employ­ment Division, 65 Or App 578, 672 P2d 63 (1983)

Where peti­tioner performed services for remunera­tion, even though SAIF paid his wages as part of voca­tional rehabilita­tion, services were employ­ment under this sec­tion. White v. Employ­ment Division, 72 Or App 163, 694 P2d 1009 (1985), as modified by 77 Or App 35, 711 P2d 196 (1985)

Where business signed lease with hair stylists allowing them to set their own hours, work elsewhere, schedule their own clients and pay $300 per month for rent, utilities, telephone and some maintenance unless they earned less than $1000, in which case they would pay 30% of earnings, business was not employer of stylists. Employ­ment Division v. Shear Crea­tions, 94 Or App 107, 764 P2d 941 (1988)

Where Federal Unemploy­ment Tax Act does not allow exemp­tion for religious organiza­tions other than churches and church-related organiza­tions, state must tax exempted churches and related organiza­tions to avoid unconstitu­tional discrimina­tion. Employ­ment Div. v. Rogue Valley Youth for Christ, 307 Or 490, 770 P2d 588 (1989)

Where peti­tioner distributes appliances to retail stores but has no control over how sales are made and at what prices or whether spiff program will be imple­mented at particular retail es­tab­lish­ment, service to peti­tioner is too indirect to constitute employ­ment and peti­tioner is not subject to payroll taxes for unemploy­ment insurance. North Pacific Supply Co., Inc. v. Emp. Div., 100 Or App 553, 787 P2d 495 (1990), Sup Ct review denied

Employ­ment Division rule classifying claimants receipt of back pay awards for weeks claimant was out of work as employ­ment conflicts with this sec­tion and is invalid. Employ­ment Div. v. Ring, 104 Or App 713, 803 P2d 766 (1990), Sup Ct review denied

Corpora­tion and per­son acting solely as corporate director are not in employer-employee rela­tionship. Necanicum Invest­ment Co. v. Employ­ment Depart­ment, 345 Or 138, 190 P3d 368 (2008)

Taxicab company contracted with city and other entities to provide transporta­tion services, and maintained fleet of taxicab drivers that provided services to company and on behalf of company to enable company to fulfill contractual obliga­tions. Even though drivers were generally paid directly by customers rather than by company, drivers provided services for remunera­tion, as used in this sec­tion, because services were performed for benefit of company. Broadway Cab LLC v. Employ­ment Depart­ment, 265 Or App 254, 336 P3d 12 (2014), affd 358 Or 431, 364 P3d 338 (2015)

Atty. Gen. Opinions

Determining employer of musicians group, (1972) Vol 35, p 1306; discrimina­tion in medical benefits provided by employers and labor unions to employees and spouses with respect to pregnancy, childbirth, etc., (1977) Vol 38, p 1239

Chapter 657

Notes of Decisions

An individual who performs services for remunera­tion is an employee, and per­son or organiza­tion for whom services are performed is an employer under terms of Employ­ment Division Law even if remunera­tion is paid indirectly rather than directly unless employer shows that some statutory exclusion applies. Lectro Lift, Inc. v. Morgan, 14 Or App 316, 513 P2d 526 (1973)

Mere act of incorporating as professional corpora­tion does not, by itself, create employer-employee rela­tionship for purposes of this chapter. Peterson v. Employ­ment Division, 82 Or App 371, 728 P2d 95 (1986)

Determina­tion of whether claimant is qualified for benefits is made by reference to ORS 657.150 (Amount of benefits) and 657.155 (Benefit eligibility conditions), which require determina­tion of amount of work that claimant performed in employ­ment as defined in ORS chapter 657, which, in turn means that exclusions from employ­ment set out in ORS 657.040 (Employment) through 657.094 (Employment) must be considered. May Trucking Co. v. Employ­ment Dept., 251 Or App 555, 284 P3d 553 (2012)

Atty. Gen. Opinions

Determining employer of musicians group, (1972) Vol 35, p 1306


1 Legislative Counsel Committee, CHAPTER 657—Unemployment Insurance, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors657.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 657, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano657.­html (2015) (last ac­cessed Jul. 16, 2016).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.