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Cirque Productions, Inc. v. Employment Division

Citations: 64 Or. App. 337; 667 P.2d 578; 1983 Ore. App. LEXIS 3620Docket: 82-T-13; CA A24994

Court: Court of Appeals of Oregon; August 10, 1983; Oregon; State Appellate Court

Narrative Opinion Summary

In this case, a dance company challenged a referee's decision classifying 31 individuals as employees, thereby subjecting the company to unemployment compensation taxes for services rendered during 1979, 1980, and part of 1981. The court reviewed the classifications and delivered a mixed ruling. It found that Hallsted and West were independent contractors under ORS 657.040, thereby reversing the lower decision regarding these individuals. Additionally, the court recognized that Agins, Armos, and Murr operated solely under Comprehensive Employment Training Act (CETA) contracts, exempting the company from additional taxes on their earnings. However, the court affirmed the classification of Hallsted, in her role as a dancer, and the remaining 26 individuals as employees, thereby upholding the tax liabilities for these parties. Consequently, the case was affirmed in part, reversed in part, and remanded to determine the precise tax obligations of the petitioner based on these findings.

Legal Issues Addressed

Classification of Workers as Independent Contractors under ORS 657.040

Application: The court determined that Hallsted and West were independent contractors rather than employees, thus exempting the petitioner from unemployment compensation taxes for these individuals.

Reasoning: Petitioner successfully argued that Hallsted and West operated as independent contractors under ORS 657.040.

Employee Classification for Unemployment Compensation

Application: The court affirmed the classification of 26 individuals, as well as Hallsted in her capacity as a dancer, as employees, thereby making the petitioner liable for unemployment compensation taxes for these individuals.

Reasoning: The classification of the remaining 26 individuals as employees is affirmed, along with Hallsted's classification in her capacity as a dancer.

Workers under Comprehensive Employment Training Act (CETA) Contracts

Application: Agins, Armos, and Murr were found to be working solely under CETA contracts, exempting the petitioner from additional unemployment compensation taxes for these individuals.

Reasoning: The referee's finding that Agins, Armos, and Murr were not independent contractors is upheld; however, it is noted that these three individuals worked solely under Comprehensive Employment Training Act (CETA) contracts, and thus the petitioner is exempt from paying additional taxes on their earnings.