74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1192
 
                         House Bill 2467
 
Sponsored by Representative MACPHERSON
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Permits employer to make deduction from employee's wages for
contribution to individual account for employee's benefit in plan
maintained under section 125, 401(k), 403(b), 408, 408A or 457 of
Internal Revenue Code if employee is given written notice of
contribution before initial deduction is made. Requires notice to
include description of benefit and right to cancel contribution
by instruction to employer, including procedure for giving
instruction.
 
                        A BILL FOR AN ACT
Relating to wage deductions for employee benefits; amending ORS
  652.610.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 652.610 is amended to read:
  652.610. (1) All persons, firms, partnerships, associations,
cooperative associations, corporations, municipal corporations,
the state and its political subdivisions, except the federal
government and its agencies, employing, in this state, during any
calendar month one or more persons, and   { - withholding - }
 { + deducting + } for any purpose  { - , - }  any sum of money
from the wages, salary or commission earned by an employee, shall
provide   { - such - }   { + the + } employee on regular paydays
with a statement sufficiently itemized to show the amount and
purpose of   { - such - }   { + the + } deductions made during
the respective period of service   { - which said - }   { + that
the + } payment covers.
  (2) The itemized statement shall be furnished to the employee
at the time payment of wages, salary or commission is made, and
may be attached to or be a part of the check, draft, voucher or
other instrument by which payment is made, or may be delivered
separately from   { - such - }   { + the + } instrument.
  (3)   { - No employer may - }   { + An employer may not + }
withhold, deduct or divert any portion of an employee's wages
unless:
  (a) The employer is required to do so by law;
  (b) The deductions are authorized in writing by the employee,
are for the employee's benefit, and are recorded in the
employer's books;
  (c) The employee has voluntarily signed an authorization for a
deduction for any other item, provided that the ultimate
recipient of the money   { - withheld - }   { + deducted + } is
not the employer, and that   { - such - }   { + the + } deduction
is recorded in the employer's books;
  (d) The deduction is authorized by a collective bargaining
agreement to which the employer is a party;
  (e) The deduction is authorized under ORS 18.736;   { - or - }
  (f) The deduction is made from the payment of wages upon
termination of employment and is authorized pursuant to a written
agreement between the employee and employer for the repayment of
a loan made to the employee by the employer, if all of the
following conditions are met:
  (A) The employee has voluntarily signed the agreement;
  (B) The loan was paid to the employee in cash or other medium
permitted by ORS 652.110;
  (C) The loan was made solely for the employee's benefit and was
not used, either directly or indirectly, for any purpose required
by the employer or connected with the employee's employment with
the employer;
  (D) The amount of the deduction at termination of employment
does not exceed the amount permitted to be garnished under ORS
18.385; and
  (E) The deduction is recorded in the employer's books
 { - . - }  { + ; or
  (g) The deduction is for a contribution to an individual
account for the employee's benefit in a plan maintained under
section 125, 401(k), 403(b), 408, 408A or 457 of the Internal
Revenue Code if the employee is given written notice of the
contribution before the initial deduction is made. The notice
must include a description of the benefit the contribution
provides and of the right to cancel the contribution by
instruction to the employer, including the procedure for giving
the instruction. + }
    { - (4) Nothing in this section shall be construed as
prohibiting the withholding - }
   { +  (4) This section does not:
  (a) Prohibit the deduction + } of amounts authorized in writing
by the employee to be contributed by the employee to charitable
organizations, including contributions made pursuant to ORS
243.666 and 663.110;   { - nor shall this section - }
   { +  (b) + } Prohibit deductions by check-off dues to labor
organizations or service fees  { - , where such is - }   { + when
the deductions are + } not otherwise prohibited by law; { +  or
 + }  { - nor shall this section - }
   { +  (c) + } Diminish or enlarge the right of any person to
assert and enforce a lawful setoff or counterclaim or to attach,
take, reach or apply an employee's compensation on due legal
process.
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