Oregon Construction Contractors (CCB) Practice Test

Which category of workers does BOLI's economic realities test distinguish?

1. Full-time employees only

2. Independent contractors and businesses

3. Part-time employees only

4. Temporary laborers

The correct answer is: Independent contractors and businesses

The economic realities test established by the Bureau of Labor and Industries (BOLI) is designed to distinguish between independent contractors and employees. This test assesses the nature of the relationship between a worker and the employer by looking at several factors, including whether the worker has the opportunity for profit or loss, whether the worker is in business for themselves, and the degree of control the employer has over the worker's performance. Independent contractors typically operate their own businesses and are engaged in an entrepreneurial venture, while employees are under the direction and control of an employer, receiving consistent wages and benefits. The distinction is crucial for purposes such as wage laws, benefits eligibility, and liability. The other categories—full-time employees, part-time employees, and temporary laborers—do not reflect the essence of the economic realities test, as this test is focused on clarifying the broader classification of workers rather than specifics tied to hours worked or the nature of employment duration.