Market Transport, Ltd. v. Employment Dept.

ORS 657.047 provides an exemption from the definition of "employment" for services performed by persons who (1) lease "their equipment" to a for-hire carrier; (2) perform transportation services for the for-hire carrier; and (3) personally operates, furnishes and maintains the equipment. The driver is an employee of the person furnishing and maintaining the vehicle and not an employee of the for-hire carrier.

Market Transportation appealed the ALJ’s assessment of unpaid payroll taxes. The ALJ determined that the drivers' services for Market Transportation were not exempt under ORS 657.047. ORS 657.047 gives an exemption from the definition of "employment" for services performed by persons who "lease" their vehicles to for-hire carriers. The exemption exists when a person (1) leases "their equipment" to a for-hire carrier; (2) performs transportation services for the for-hire carrier; and (3) personally operates, furnishes and maintains the equipment. The person driving the vehicle is an employee of the person furnishing and maintaining the vehicle and not an employee of the for-hire carrier. In this case the ALJ erred in determining that the agreements were categorically ineligible for the exemption because the contracts provided consideration for Market Transportation’s use of the trucks. Also, there was some evidence that drivers furnished and maintained the vehicles as required by ORS 657.047(1)(b). Vacated and remanded.