Chapter 690 Oregon Laws 2001

AN ACT

HB 2867

Relating to penalties for violations of wage laws; amending ORS 652.150, 652.900 and 653.256.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 652.150 is amended to read:

652.150. If an employer willfully fails to pay any wages or compensation of any employee whose employment ceases, as provided in ORS 652.140 and 652.145, then, as a penalty for such nonpayment, the wages or compensation of such employee shall continue from the due date thereof at the same hourly rate for eight hours per day until paid or until action therefor is commenced. [; provided, that] However:

(1) In no case shall such wages or compensation continue for more than 30 days from the due date[; and provided further,].

(2) Except as provided in subsection (3) of this section, the penalty may not exceed 100 percent of the employee’s unpaid wages or compensation unless the employer fails to pay the full amount of the employee’s unpaid wages or compensation within 12 days after written notice of such nonpayment is sent to the employer by or on behalf of the employee. If the employee or a person on behalf of the employee fails to send the written notice, the penalty may not exceed 100 percent of the employee’s unpaid wages or compensation.

(3) Subsection (2) of this section does not apply when the employer has willfully violated ORS 652.140 or 652.145 one or more times in the year before the employee’s employment ceased.

(4) The employer may avoid liability for the penalty by showing financial inability to pay the wages or compensation at the time they accrued.

SECTION 2. ORS 652.900 is amended to read:

652.900. (1) In addition to any other penalty provided by law, the Commissioner of the Bureau of Labor and Industries may assess a civil penalty not to exceed $1,000 against any person who violates ORS 652.020, 652.140 or 652.145 or any rule adopted pursuant thereto.

(2) Civil penalties under this section shall be imposed as provided in ORS 183.090.

(3) All penalties recovered under this section shall be paid into the State Treasury and credited to the General Fund and are available for general governmental expenses.

SECTION 3. ORS 653.256 is amended to read:

653.256. (1) In addition to any other penalty provided by law, the Commissioner of the Bureau of Labor and Industries may assess a civil penalty not to exceed $1,000 against any person who willfully violates ORS 653.025, 653.030, 653.045, 653.050, 653.060 or 653.261 or any rule adopted [pursuant thereto. However, no civil penalty may be assessed for violations of rules pertaining to the payment of overtime wages] thereunder.

(2) Civil penalties authorized by this section shall be imposed in the manner provided in ORS 183.090.

(3) All sums collected as penalties [pursuant to] under this section shall be first applied toward reimbursement of costs incurred in determining the violations, conducting hearings under this section and addressing and collecting such penalties. The remainder, if any, of the sums collected as penalties [pursuant to] under this section shall be paid over by the commissioner to the Division of State Lands for the benefit of the Common School Fund of this state. The division shall issue a receipt for the money to the commissioner.

Approved by the Governor June 29, 2001

Filed in the office of Secretary of State June 29, 2001

Effective date January 1, 2002

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