May Trucking Co. v. Employment Dept.

Under ORS 657.047, an exemption from “employment” exists (1) when a person 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.

Petitioner (May Trucking) petitioned for judicial review of an ALJ’s decision to assess a tax credit of $45,101.16 for an overpayment of unemployment compensation. Petitioner believed they were entitled to a larger credit for two reasons. First, Petitioner argued that the ALJ erred in by determining the base of operations as the location that Petitioner’s employee’s parked their vehicles during extended down time. Second, Petitioner argued that the ALJ erred by concluding that the services of the drivers constituted “employment” and were not exempt under ORS 657.047. In regards to the first error, the Court found that the ALJ’s decision was supported by substantial evidence, and did not disavow established criteria of what constitutes a “base of operations.” For the second error, the Court found that the ALJ had erred in various ways in their determination that no exception applied to Petitioner’s claim. Specifically, the ALJ in erred in finding that the lease used for the various truckers failed to satisfy the statutory requirements. Reversed and remanded.