Oregon Construction Contractors (CCB) Practice Test

Which one of the following businesses is classified as exempt from providing workers compensation?

1. A sole proprietor who employs his brother

2. Partnerships with employees who are not family members but are only paid minimum wage

3. Partnerships with no employees where all of the partners are immediate family members

4. Corporation with three corporate officers that are family members and one part-time employee

The correct answer is: Partnerships with no employees where all of the partners are immediate family members

The classification of exemptions from providing workers' compensation is based on specific regulations outlined by the state. In Oregon, partnerships with no employees where all partners are immediate family members are recognized as exempt from the requirement to provide workers’ compensation coverage. This includes situations where the business is structured as a partnership and does not have non-family employees involved. In this case, the immediate family members are generally not considered employees under workers' compensation laws, as the law is designed to eliminate the financial burden of mandating coverage when family members interact within a business. This exemption acknowledges the familial nature of the partnership and avoids complications related to employment status within family-run businesses. The other options do not fulfill the criteria for exemption from workers' compensation. For instance, a sole proprietor employing his brother may still have to provide workers' compensation coverage since the brother is an employee, despite a familial relationship. Similarly, partnerships with employees, regardless of wage level, are subject to the requirements. In the option involving the corporation, having a part-time employee – regardless of familial ties – creates an obligation for workers' compensation coverage for that worker.