Oregon

Buying workers’ compensation for:

Oregon

State Fund: Yes, Competitive - SAIF Corporation is Oregon’s not-for-profit, state-chartered workers’ compensation insurance company. They issue more than half of the policies in Oregon and provide coverage to more than 500,000 workers.

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Oregon, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

Every employer employing one or more employees must have workers’ compensation coverage.

Some Exceptions:

  • A worker employed as a domestic servant in or about a private home.
  • A worker employed to do gardening, maintenance, repair, remodeling or similar work in or about the private home
  • A worker whose employment is casual. "Casual" refers only to employments where the work in any 30-day period, without regard to the number of workers employed, involves a total labor cost of less than $500.
  • Sole proprietors
  • Managers, of limited liability companies, regardless of the nature of the work performed. However, members, including members who are managers, of limited liability companies with more than one member, while engaged in work performed in direct connection with the construction, alteration, repair, improvement, moving or demolition of an improvement on real property or appurtenances thereto, are subject workers. When labor or services are performed under contract, the limited liability company must qualify as an independent contractor.
  • Corporate officers who are directors of the corporation and who have a substantial ownership interest in the corporation (some limitations apply)

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Oregon, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are included in coverage but can exclude yourself.
  • You are a member of an LLC: Oregon includes you in coverage; you may exempt yourself with certain exceptions.

Failure to Secure Compensation

Actions for damages may be brought by an injured worker or the legal representative of the injured worker against any employer who has failed to comply.

The penalty for the first offense is two times the amount of premium you should have paid for insurance, with a minimum of $1,000. If you continue to employ workers without coverage, the penalty increases to $250 per day with no limit on the total fine. By law, bankruptcy can’t reduce this debt. In addition, WCD will request a permanent court injunction to force you to comply. If you disobey an injunction, you’re in contempt of court and subject to other types of sanctions, including jail time.

Proof of Coverage is Required

All employers in Oregon who are required to provide workers’ compensation coverage must display a Notice of Compliance poster in a central gathering area. (ex. breakroom)

Each poster includes workers’ compensation information to help workers and employers provide current insurance information to health care providers at the time of injury to speed up the claim process.

Employers will automatically receive a Notice of Compliance poster when they first get compensation coverage or change coverage providers.

Once you have the posting notice, it remains valid and without need to update the posting as long as the policy remains active. You are allowed to make and post copies of valid posters. If the policyholder, employer name, or the insurer changes, you will automatically receive a new poster. A change in the policy number, which is a common practice at annual renewal, does not require a new posting notice as long as the other elements remain the same.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.