Oregon Construction Contractors (CCB) Practice Test

What misconception exists about contractors who use workers supplied by leasing companies?

1. They are included under typical contractor obligations

2. They automatically receive exemptions from all regulations

3. They have the same rights as self-employed contractors

4. They can negotiate exemption terms with the leasing company

The correct answer is: They automatically receive exemptions from all regulations

Contractors who utilize workers from leasing companies often face misconceptions about their obligations and rights. One prevalent misconception is the idea that they automatically receive exemptions from all regulations. This misunderstanding can lead contractors to believe that by using leased workers, they are no longer accountable for certain legal and regulatory requirements that typically apply to traditional employees. In reality, contractors still retain certain responsibilities, including adhering to labor laws, ensuring the safety and health of workers, and complying with applicable tax obligations. The leasing company may handle some of these responsibilities, but this does not eliminate the primary contractor's obligations to operate within the legal framework. Thus, assuming that leasing workers absolves contractors of all regulatory accountability is a significant misconception, which explains why the answer is aligned with this understanding.