Flame, Inc. v. Employment Division

Petitioner seeks review of an Employment Division order assessing employment taxes against it for amounts which it paid in 1980 and 1981 to bands which performed at its nightspot. It argues that it complied with a statute authorizing the shifting of responsibility for the taxes to the bands and that, if it did not, the bands were independently established businesses and therefore were not covered by the employment law. We affirm in part, reverse in part and remand.

Petitioner first relies on the version of ORS 657.506 (iamended by Or Laws 1983, ch 545, § 1) in effect in 1980 and 1981. It…