Oregon Construction Contractors (CCB) Practice Test

Are subcontractors considered employees of the general contractor? True or False?

1. True

2. False

The correct answer is: False

Subcontractors are not considered employees of the general contractor; rather, they operate as independent entities. This means that they have their own business structure, handle their own taxes, and are responsible for their own liability and insurance. The relationship between a general contractor and a subcontractor is typically defined by a contractual agreement specifying the work to be performed, but it does not establish an employer-employee relationship. In the construction industry, this distinction is important for legal and tax purposes. Subcontractors maintain control over how their work is done, which differentiates them from employees who generally follow the direction and policies set by their employer. Furthermore, this independence allows subcontractors to work for multiple general contractors or projects simultaneously. Therefore, the assertion that subcontractors are employees of the general contractor is false.