(1) If a person awards a contract involving the performance of labor where such labor is a normal and customary part or process of the person’s trade or business, the person awarding the contract is responsible for providing workers’ compensation insurance coverage for all individuals, other than those exempt under ORS § 656.027, who perform labor under the contract unless the person to whom the contract is awarded provides such coverage for those individuals before labor under the contract commences. If an individual who performs labor under the contract incurs a compensable injury, and no workers’ compensation insurance coverage is provided for that individual by the person who is charged with the responsibility for providing such coverage before labor under the contract commences, that person shall be treated as a noncomplying employer and benefits shall be paid to the injured worker in the manner provided in this chapter for the payment of benefits to the worker of a noncomplying employer.

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(2) If a person to whom the contract is awarded is exempt from coverage under ORS § 656.027, and that person engages individuals who are not exempt under ORS § 656.027 in the performance of the contract, that person shall provide workers’ compensation insurance coverage for all such individuals. If an individual who performs labor under the contract incurs a compensable injury, and no workers’ compensation insurance coverage is provided for that individual by the person to whom the contract is awarded, that person shall be treated as a noncomplying employer and benefits shall be paid to the injured worker in the manner provided in this chapter for the payment of benefits to the worker of a noncomplying employer.

(3) As used in this section:

(a) ‘Person’ includes partnerships, joint ventures, associations, corporations, limited liability companies, governmental agencies and sole proprietorships.

(b) ‘Sole proprietorship’ means a business entity or individual who performs labor without the assistance of others. [1979 c.864 § 2; 1981 c.725 § 1; 1981 c.854 § 4; 1983 c.397 § 1; 1983 c.579 § 2a; 1985 c.706 § 1; 1989 c.762 § 5; 1995 c.93 § 34; 1995 c.332 § 6a]

[Repealed by 1959 c.448 § 14]