Mt. Jefferson Carpets v. Employment Division

In these consolidated cases petitioners were engaged in the business of selling carpets but contracted with others to lay the carpets for them. The respondent Employment Division determined that the carpet layers were employes of petitioners for whom contributions must be paid and that payroll taxes were properly assessed against petitioners. Petitioners contend that the carpet layers were independent contractors and exempt from contribution under ORS 657.040. 1

The burden is on the petitioners to establish that an individual to whom compensation was paid falls within the exemption.…