ACN Opportunity, LLC v. Employment Dept.Annotate this Case
Petitioner ACN Opportunity, LLC (ACN) sold satellite television, telephone, internet, and home security services, as well as some goods related to those services, through a network of direct-to-consumer sellers that it calls “independent business owners” (IBOs). The Employment Department determined that ACN was an employer and thus was required to pay unemployment insurance tax on earnings that ACN paid to the IBOs for their sales work. An administrative law judge (ALJ) affirmed that determination, concluding that the IBOs did not fall within the exemption from employment under ORS 657.087(2) and were not independent contractors under ORS 670.600. ACN appealed the department’s final order, and the Court of Appeals affirmed. The Oregon Supreme Court accepted review of this case primarily to address the statutory interpretation questions that this case presented. First, the Court concluded the IBOs did not qualify as independent contractors, because ACN failed to establish that the IBOs were customarily engaged in an independently established business. In reaching that conclusion, (1) the Court construed “maintains a business location” in ORS 670.600(3)(a) as the Court of Appeals did, and (2) the Supreme Court agreed with the Court of Appeals that the IBOs lacked the required authority to hire others to provide services, as provided in ORS 670.600(3)(e). Finally, the Supreme Court rejected ACN’s reading of the in-home sales exemption from employment in ORS 657.087(2) and concluded the IBOs do not fall within that exemption. As a result, the Court of Appeals’ decision and the final order of the ALJ were affirmed.