Oregon Construction Contractors (CCB) Practice Test

A person is considered an independent contractor if they are:

1. Free from direction and control

2. Paid by the hour

3. Part of a union

4. Employed full-time

The correct answer is: Free from direction and control

A person being considered an independent contractor is fundamentally rooted in their level of independence in how they conduct their work. When someone is free from direction and control, it means they have the autonomy to determine how and when to perform their tasks without being subject to the oversight of an employer. This independence is a key factor in distinguishing an independent contractor from an employee. Independent contractors typically set their schedules, choose their methods of work, and manage their business operations without direct supervision. They are responsible for their own taxes, benefits, and business expenses, further emphasizing their status as individuals running their own businesses rather than being on a payroll. In contrast, being paid by the hour, being part of a union, or being employed full-time usually indicates a level of employer control and an employee relationship, which differentiates these individuals from independent contractors. These other options do not reflect the essential characteristic of independence that defines the status of a contractor.