Oregon Construction Contractors (CCB) Practice Test

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Can an exempt contractor employ as many individuals as desired, including family members?

  1. Yes, without restrictions

  2. No, they have limitations

  3. Only if they are registered

  4. Only if they pass background checks

The correct answer is: No, they have limitations

An exempt contractor in Oregon has specific limitations regarding the employment of individuals. While they may technically employ family members or any number of individuals, there are regulations that govern the overall operation and structure of the business. For instance, exempt contractors typically may not be able to utilize the same tax benefits or protections afforded to registered contractors, which can create practical limitations. Additionally, employing a significant number of workers could require adherence to various labor laws, insurance requirements, and tax obligations that might apply to contractor operations regardless of their exempt status. Thus, while exempt contractors might have the freedom to hire, these factors introduce limitations that prevent them from hiring without restrictions. Consequently, the correct understanding acknowledges that there are confines within which they must operate.

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