1. (1) The following definitions apply when determining where an employee’s service is performed under ORS 657B.175:

   1. (a) “Incidental” service means service that is temporary or transitory in nature or consists of isolated transactions. Factors that the department may consider in determining whether an employee’s service is incidental include:

      1. (A) The length of service with the employer within Oregon compared to outside Oregon;
      2. (B) Whether the service is an isolated situation or a regular part of the employee’s work;
      3. (C) Whether the employee intends to return to performing services in Oregon upon completion of the services performed outside of Oregon; and
      4. (D) Whether the service performed outside of Oregon is of the same nature as that performed in Oregon.
   2. (b) “Base of operations” means the place, or fixed center of more or less permanent nature, from which the employee starts work and to which the employee customarily returns to receive instructions from the employer, communicate with customers or others, replenish stocks and materials, repair equipment, or perform any other functions necessary to the employee’s trade or profession. The base of operations may be the employee's business office, which may be located at their residence, or the contract of employment may specify a particular place where the employee is to receive direction and instructions.
   3. (c) “Place from which the service is directed or controlled” means the location where the basic authority exists and from which the general direction and control originates. This is distinct from the location where a manager or foreman directly supervises the performance of services under general instructions.

2. (2) In determining whether an employee’s wages shall be used to make determinations under ORS chapter 657B, the localization factors described in ORS 657B.175 shall be applied in the following sequence:

   1. (a) First, determine whether the employee’s service is localized in Oregon or in another state.
   2. (b) Second, if the service is not localized within any state, determine whether some of the service is performed in Oregon and whether the employee’s base of operations is in Oregon.
   3. (c) Third, if the service is not localized within any state and the employee has no base of operations or the base of operations is not in any state in which some part of the service is performed, but some of the service is performed in Oregon, determine whether the place from which the service is directed or controlled is in Oregon.
   4. (d) Fourth, if the service is not localized within any state and the place from which the service is directed or controlled is not in Oregon or any other state in which some part of the service is performed, but some of the service is performed in Oregon, then determine whether the employee’s residence is in Oregon.
      

Statutory/Other Authority

ORS 657B.340

Statutes/Other Implemented

ORS 657B.175

History

ED 75-2025, amend filed 12/29/2025, effective 01/01/2026
ED 18-2025, minor correction filed 03/28/2025, effective 03/28/2025
ED 12-2022, adopt filed 10/06/2022, effective 10/06/2022