Chapter 656 — Chapter 656
348 sections in this chapter.
ORS 656.578 Workers’ election whether to sue third person or noncomplying employer for damages. If a worker of a noncomplying employer receives a compensable injury in the course of employment, or if a worker receives a compensable injury due to the negligence or wrong of a third person (other than those exempt from liability under ORS 656.018), entitling the worker under ORS 656.154 to seek a remedy against such third person, such worker or, if death results from the injury, the other beneficiaries shall elect whether to recover damages from such employer or third person. If a worker leaves beneficiaries who are minors, the right of election shall be exercised by their surviving parent, if any; otherwise, such election shall be exercised by the guardian. [Formerly 656.312]
0.0K chars
[Repealed or reserved.]
ORS 656.580 Payment of compensation notwithstanding cause of action for damages; lien on cause of action for compensation paid. (1) The worker or beneficiaries of the worker, as the case may be, shall be paid the benefits provided by this chapter in the same manner and to the same extent as if no right of action existed against the employer or third party, until damages are recovered from such employer or third party
0.2K chars
(2) The paying agency has a lien against the cause of action as provided by ORS 656.591 or 656.593, which lien shall be preferred to all claims except the cost of recovering such damages. [Formerly 656.314]
ORS 656.582 [Renumbered 656.384]
0.0K chars
[Repealed or reserved.]
ORS 656.583 Paying agency may compel election and prompt action. (1) The paying agency may require the worker or other beneficiaries or the legal representative of a deceased worker to exercise the right of election provided in ORS 656.578 by serving a written demand by registered or certified mail or by personal service upon such worker, beneficiaries or legal representative
0.9K chars
(2) Unless such election is made within 60 days from the receipt or service of such demand and unless, after making such election, an action against such third person is instituted within such time as is granted by the paying agency, the worker, beneficiaries or legal representat…
ORS 656.584 [Amended by 1965 c.285 §68d; renumbered 656.624]
0.0K chars
[Repealed or reserved.]
ORS 656.586 [Renumbered 656.720]
0.0K chars
[Repealed or reserved.]
ORS 656.587 Paying agency must join in any compromise. Any compromise by the worker or other beneficiaries or the legal representative of the deceased worker of any right of action against an employer or third party is void unless made with the written approval of the paying agency or, in the event of a dispute between the parties, by order of the Workers’ Compensation Board. [Formerly 656.318; 1990 c.2 §34]
0.0K chars
[Repealed or reserved.]
ORS 656.588 [Amended by 1957 c.558 §1; 1965 c.285 §42a; renumbered 656.386]
0.0K chars
[Repealed or reserved.]
ORS 656.590 [Amended by 1965 c.285 §42b; renumbered 656.388]
0.0K chars
[Repealed or reserved.]
ORS 656.591 Election not to bring action operates as assignment of cause of action; repayments to department by paying agency. (1) An election made pursuant to ORS 656.578 not to proceed against an employer or third person operates as an assignment to the paying agency of the cause of action, if any, of a worker or the beneficiaries or legal representative of a deceased worker against the employer or third person, and the paying agency may bring action against the employer or third person in the name of the worker or other beneficiaries
1.1K chars
(2) Any sum the paying agency recovers in excess of the expenses the paying agency incurred in making the recovery and the amount the paying agency expended for compensation, first aid or other medical, surgical or hospital service, together with the present value of the monthly …
ORS 656.593 Procedure when worker or beneficiary elects to bring action; release of liability and lien of paying agency in certain cases. (1) If a worker or the beneficiaries of the worker elect to recover damages from an employer or third person, the worker or beneficiaries shall give notice of the election to the paying agency by personal service or by registered or certified mail. The paying agency likewise must be given notice of the name of the court in which the action is brought, and a return showing service of the notice on the paying agency must be filed with the clerk of the court but is not a part of the record except to give notice to the defendant of the lien of the paying agency, as provided in this section. The proceeds of any damages the worker or beneficiaries recover from an employer or third person are subject to a lien of the paying agency for the paying agency’s share of the proceeds as set forth in this section. If the proceeds are paid in a series of payments, each payment must be distributed proportionately to each recipient according to the formula provided in this section, unless the parties otherwise agree. The total proceeds must be distributed as follows
7.8K chars
(a) Costs and attorney fees incurred must be paid, and the attorney fees may not exceed the advisory schedule of fees established by the Workers’ Compensation Board for such actions. (b) The worker or the beneficiaries of the worker must receive at least 33-1/3 percent of the bal…
ORS 656.595 Precedence of cause of action; compensation paid or payable not to be an issue. (1) Any action brought against a third party or employer, as provided in this chapter, shall have precedence over all other civil cases
0.4K chars
(2) In any third party action brought pursuant to this chapter, the fact that the injured worker or the beneficiaries of the injured worker are entitled to or have received benefits under this chapter shall not be pleaded or admissible in evidence. (3) A challenge of the right to…
ORS 656.596 Damage recovery as offset against compensation; recovery procedure; notice to paying agency. (1) If no workers’ compensation claim has been filed or accepted at the time a worker or the beneficiaries of a worker recover damages from a third person or noncomplying employer pursuant to ORS 656.576 to 656.596, the amount of the damages shall constitute an offset against compensation due the worker or beneficiaries of the worker for the injuries for which the recovery is made to the extent of any lien that would have been authorized by ORS 656.576 to 656.596 if a workers’ compensation claim had been filed and accepted at the time of recovery of damages
0.7K chars
(2) The offset created by subsection (1) of this section shall be recoverable from compensation payable to the worker, the worker’s beneficiaries and the worker’s attorney. No compensation payments shall be made to the worker, the worker’s beneficiaries or the worker’s attorney u…
ORS 656.597 [Formerly 656.326; repealed by 1971 c.70 §2]
0.1K chars
FUNDS; SOURCE; INVESTMENT; DISBURSEMENT (General Provisions)
ORS 656.602 Disbursement procedures. All disbursements for administrative expenses from the Industrial Accident Fund, except as provided by ORS 656.642, shall be made only upon warrants drawn by the Oregon Department of Administrative Services upon vouchers duly approved by the State Accident Insurance Fund Corporation. [Formerly 656.472; 1977 c.804 §17; 1983 c.740 §243; 1985 c.212 §9; 1987 c.373 §36]
0.0K chars
[Repealed or reserved.]
ORS 656.604 [Formerly 656.474; repealed by 1987 c.373 §85]
0.0K chars
[Repealed or reserved.]
ORS 656.605 Workers’ Benefit Fund; uses and limitations. (1) The Workers’ Benefit Fund is created in the State Treasury, separate and distinct from the General Fund. Moneys in the fund shall be invested in the same manner as other state moneys and investment earnings shall be credited to the fund. The fund shall consist of the following
3.3K chars
(a) Moneys received pursuant to ORS 656.506. (b) Moneys recovered under ORS 656.054. (c) Penalties recovered under ORS 656.735. (d) All moneys received by the Director of the Department of Consumer and Business Services pursuant to law or from any other source for purposes for wh…
ORS 656.612 Assessments for department activities; amount; collection procedure. (1) The Director of the Department of Consumer and Business Services shall impose and collect assessments from all insurers, self-insured employers and self-insured employer groups in an amount sufficient to pay the expenses of the Department of Consumer and Business Services under this chapter and ORS chapter 654 and under the Insurance Code. The assessments shall be paid in the manner and at intervals as the director may direct and when collected shall be deposited in the Consumer and Business Services Fund. The receipts in the account are continuously appropriated to the department for the purpose described in this subsection
1.5K chars
(2) The assessments shall be levied against the insurers’ direct earned premium and the direct earned premium self-insured employers and self-insured employer groups would have paid had they been insured employers. (3) The director may impose and collect an additional assessment …
ORS 656.614 Self-Insured Employer Adjustment Reserve; Self-Insured Employer Group Adjustment Reserve. (1) The Self-Insured Employer Adjustment Reserve and the Self-Insured Employer Group Adjustment Reserve shall be established within the Consumer and Business Services Fund. These reserves shall be used to pay the claims of workers of self-insured employers or of employers that are members of a self-insured employer group when the Director of the Department of Consumer and Business Services finds that the worker cannot obtain payment from the employer or self-insured employer group responsible for payment of the claim because of insolvency, default or decertification of the employer, the self-insured employer group or the excess insurer of the employer or group, and exhaustion of the excess insurance and security deposited to secure such payment
1.9K chars
(2) If at any time the director finds that the amount of moneys in the reserves is not sufficient to carry out the purposes stated in subsection (1) of this section, the director may impose and collect from self-insured employers and self-insured employer groups assessments suffi…
ORS 656.616 [Formerly 344.810; repealed by 1985 c.600 §15]
0.0K chars
[Repealed or reserved.]
ORS 656.618 [1965 c.285 §67e; 1977 c.804 §19; repealed by 1987 c.373 §85]
0.0K chars
[Repealed or reserved.]
ORS 656.620 [1965 c.285 §67f; 1977 c.804 §20; 1979 c.839 §14; repealed by 1987 c.373 §85]
0.0K chars
[Repealed or reserved.]
ORS 656.622 Reemployment Assistance Program; claim data not to be used for insurance rating; rules. (1) There is established a Reemployment Assistance Program for the benefit of employers and workers and for the purpose of
5.4K chars
(a) Giving employers and workers the benefits provided in this section. (b) Providing reimbursement of reasonable program administration costs of self-insured employers and of insurers of employers who participate in any program funded through the Reemployment Assistance Program.…
ORS 656.624 [Formerly 656.584; 1983 c.740 §244; repealed by 1987 c.250 §1]
0.0K chars
[Repealed or reserved.]
ORS 656.625 Reopened Claims Program; rules. (1) There is established a Reopened Claims Program for the purpose of reimbursing the additional amounts of compensation payable to injured workers that results from any award made by the Workers’ Compensation Board or voluntary claim reopening pursuant to ORS 656.278 after January 1, 1988
0.6K chars
(2) Notwithstanding any other provision of law, any reimbursement from the Workers’ Benefit Fund for the purposes of the Reopened Claims Program shall be in such amounts payable to an injured worker pursuant to ORS 656.278 and only to the extent that moneys are available in the f…
ORS 656.628 Workers with Disabilities Program; use of funds; conditions and limitations; rules. (1) There is established a Workers with Disabilities Program for the benefit of complying employers and their workers. The purpose of the program is to encourage the employment or reemployment of workers with disabilities
3.4K chars
(2) As used in this section, “worker with a disability” means a worker who has or is subject to any permanent physical or mental impairment, whether congenital or due to an injury or disease, including periodic impairment of consciousness or muscular control of such character tha…
ORS 656.630 Oregon Institute of Occupational Health Sciences funding; report of activities. (1) There is transferred to and continuously appropriated to the Oregon Institute of Occupational Health Sciences of the Oregon Health and Science University, the following amounts from the following sources
1.3K chars
(a) The amount of revenue equivalent to one-sixteenth of one cent of the money deductible from workers’ wages pursuant to ORS 656.506 (2). (b) An amount equal to the amount raised by paragraph (a) of this subsection from those assessments made pursuant to ORS 656.612 (2). (2) The…
ORS 656.632 Industrial Accident Fund. (1) The Industrial Accident Fund is continued. This fund shall be held by the State Treasurer and by the State Treasurer deposited in such banks as are authorized to receive deposits of general funds of the state
0.7K chars
(2) All moneys received by the State Accident Insurance Fund Corporation under this chapter, shall be paid forthwith to the State Treasurer and shall become a part of the Industrial Accident Fund. However, any assessments collected for the Director of the Department of Consumer a…
ORS 656.634 Trust fund status of Industrial Accident Fund. (1) The Industrial Accident Fund is a trust fund exclusively for the uses and purposes declared in this chapter, except that this provision shall not be deemed to amend or impair the force or effect of any law of this state specifically authorizing the investment of moneys from the fund
0.7K chars
(2) Subject to the right of the State of Oregon to direct legislatively the disposition of any surplus in excess of reserves and surplus deemed actuarially necessary according to recognized insurance principles, and necessary in addition thereto to assure continued fiscal soundne…
ORS 656.635 Reserve accounts in Industrial Accident Fund. (1) The State Accident Insurance Fund Corporation may set aside, out of interest and other income received through investment of the Industrial Accident Fund, such part of the income as the State Accident Insurance Fund Corporation considers necessary, which moneys so segregated shall remain in the fund and constitute one or more reserve accounts. Such reserve accounts shall be maintained and used by the State Accident Insurance Fund Corporation to offset gains and losses of invested capital
0.3K chars
(2) The State Accident Insurance Fund Corporation may provide for amortizing gains and losses of invested capital in such instances as the State Accident Insurance Fund Corporation determines that amortization is preferable to a reserve account provided for in subsection (1) of t…
ORS 656.636 Reserves in Industrial Accident Fund for awards for permanent disability or death. For every case where the State Accident Insurance Fund Corporation must pay an award or benefits for death or permanent total disability or permanent partial disability, the State Accident Insurance Fund Corporation forthwith shall set aside in the Industrial Accident Fund in a reserve account the amount required to equal, together with the anticipated interest increment, the present worth of the installments payable on account of that injury. The number of installments shall be computed in case of permanent total disability or death according to the ages of the beneficiaries, and according to the actuarial practices in the insurance field as recommended by the Director of the Department of Consumer and Business Services and, in the case of permanent partial disability, according to the schedule in ORS 656.214 and 656.216. [Formerly 656.456; 1971 c.768 §4; 1973 c.614 §7; 1974 c.41 §10; 1977 c.200 §1; 1977 c.804 §21; 1979 c.839 §15; 1979 c.845 §4; 1981 c.854 §45; 1983 c.391 §2; 1985 c.739 §2]
0.0K chars
[Repealed or reserved.]
ORS 656.637 [1979 c.334 §2; 1983 c.391 §3; repealed by 1985 c.739 §3]
0.0K chars
[Repealed or reserved.]
ORS 656.638 [Formerly 656.460; 1969 c.536 §4; 1971 c.768 §5; 1977 c.804 §22; repealed by 1981 c.854 §1]
0.0K chars
[Repealed or reserved.]
ORS 656.640 Creation of reserves. The State Accident Insurance Fund Corporation may set aside such other reserves within the Industrial Accident Fund as are deemed necessary. [Formerly 656.468; 1981 c.854 §46]
0.0K chars
(Other Funds)
ORS 656.642 Emergency Fund. (1) There is created a revolving fund known as the Emergency Fund, which shall be deposited and maintained with the State Treasurer in the sum of $200,000
0.6K chars
(2) The Emergency Fund shall be disbursed by checks or orders issued by the State Accident Insurance Fund Corporation and drawn upon the State Treasurer: (a) To pay compensation benefits. (b) To refund to employers amounts paid to the Industrial Accident Fund in excess of the amo…
ORS 656.644 Petty cash funds. The State Accident Insurance Fund Corporation may, at its discretion, establish and maintain petty cash funds, not exceeding a total of $20,000 for the purpose of making change, refunding fees and premiums and assessments paid in error, the advance of traveling expense to employees and claimants, and paying miscellaneous legal fees and other petty incidental expenses in the administration of the Workers’ Compensation Law. [Formerly 656.466; 1981 c.854 §47]
0.0K chars
[Repealed or reserved.]
ORS 656.646 [Formerly 656.558; repealed by 1981 c.876 §1]
0.0K chars
[Repealed or reserved.]
ORS 656.648 [1974 c.41 §12; repealed by 1981 c.854 §1 and 1981 c.876 §1]
0.0K chars
ADMINISTRATION (General Provisions)
ORS 656.702 (1) The records of the State Accident Insurance Fund Corporation are subject to ORS 192.311 to 192.478
1.2K chars
(2)(a) Notwithstanding ORS 192.355, the State Accident Insurance Fund Corporation shall make the accident experience records of the corporation available to a bona fide rating organization to assist in making workers’ compensation rates. Costs involved in making the records avail…
ORS 656.704 Actions and orders regarding matters concerning claim and matters other than matters concerning claim; authority of director and board; administrative and judicial review; rules. (1) Actions and orders of the Director of the Department of Consumer and Business Services regarding matters concerning a claim under this chapter, and administrative and judicial review of those matters, are subject to the procedural provisions of this chapter and such procedural rules as the Workers’ Compensation Board may prescribe
4.0K chars
(2)(a) A party dissatisfied with an action or order regarding a matter other than a matter concerning a claim under this chapter may request a hearing on the matter in writing to the director. The director shall refer the request for hearing to the Workers’ Compensation Board for…
ORS 656.708 Hearings Division; duties. The Hearings Division is continued within the Workers’ Compensation Board. The division has the responsibility for providing an impartial forum for deciding all cases, disputes and controversies arising under ORS 654.001 to 654.295, 654.412 to 654.423 and 654.750 to 654.780, all cases, disputes and controversies regarding matters concerning a claim under this chapter, and for conducting such other hearings and proceedings as may be prescribed by law. [1977 c.804 §25; 1979 c.839 §17; 1987 c.373 §39]
0.0K chars
[Repealed or reserved.]
ORS 656.709 Ombudsman for injured workers; ombudsman for small business; duties. (1)(a) The Director of the Department of Consumer and Business Services, with the concurrence of the Governor, shall appoint an ombudsman for injured workers. The ombudsman is under the supervision and control of the director and, with the concurrence of the Governor, the director may terminate the ombudsman
1.6K chars
(b) The ombudsman for injured workers shall: (A) Act as an advocate for injured workers by accepting, investigating and attempting to resolve complaints concerning matters related to workers’ compensation; (B) Provide information to injured workers to enable them to protect their…
ORS 656.710 [1977 c.699 §2; 1979 c.839 §18; repealed by 1981 c.535 §26]
0.0K chars
[Repealed or reserved.]
ORS 656.712 Workers’ Compensation Board; members; qualifications; chairperson; confirmation; term; vacancies. (1) The Workers’ Compensation Board, composed of five members appointed by the Governor, is created within the Department of Consumer and Business Services. Not more than three members shall belong to one political party and inasmuch as the duties to be performed by the members vitally concern the employers, the employees, as well as the whole people, of the state, persons shall be appointed as members who fairly represent the interests of all concerned. All board members shall impartially apply the law in each case and shall not represent any special interest. However, at least two members shall be selected from among persons with background and understanding as to the concerns of employers and at least two members of the board shall be selected from among persons with background and understanding as to the concerns of employees. One member shall represent the interests of the public and shall serve as the board chairperson
0.7K chars
(2) A member of the board shall be appointed for a term of four years from the date of appointment and qualification. Each member shall hold office until a successor is appointed and qualified. However, all board members serve at the pleasure of the Governor and may be removed in…
ORS 656.714 Removal of board member. (1) The Governor may at any time remove any member of the Workers’ Compensation Board for inefficiency, neglect of duty or malfeasance in office. Before such removal the Governor shall give the member a copy of the charges against the member and shall fix the time when the member can be heard in defense, which shall not be less than 10 days thereafter. Such hearing shall be open to the public
0.3K chars
(2) If the member is removed, the Governor shall file in the office of the Secretary of State a complete statement of all charges made against such member and the findings thereon, with a record of the proceedings. (3) The power of removal is absolute and there is no right of rev…
ORS 656.716 Board members not to engage in political or business activity that interferes with duties as board member; oath and bond required. (1) No member of the Workers’ Compensation Board shall hold any other office or position of profit or pursue any other business or vocation or serve on or under any committee of any political party, but shall devote the entire time to the duties of the office of the member
1.3K chars
(2) Before entering on the duties of office, each member shall take and subscribe to an oath or affirmation: (a) That the member will support the Constitutions of the United States and of this state and faithfully and honestly discharge the duties of the office. (b) That the memb…
ORS 656.718 Chairperson; quorum; panels. (1) The board chairperson shall supervise and manage the Workers’ Compensation Board and the Hearings Division. The chairperson serves at the pleasure of the Governor and may be removed in accordance with the provisions of ORS 656.714
1.2K chars
(2) A majority of the board’s members shall constitute a quorum to transact the board’s business. No vacancy shall impair the right of the remaining members to exercise all the powers of the board. (3)(a) In exercise of authority to decide individual cases, members of the board m…
ORS 656.720 Prosecution and defense of actions by Attorney General and district attorneys. Upon request of the Director of the Department of Consumer and Business Services the Attorney General or, under direction of the Attorney General, the district attorney of any county, shall institute or prosecute actions or proceedings for the enforcement of this chapter, when such actions or proceedings are within the county in which such district attorney was elected, and shall defend in like manner all suits, actions and proceedings brought against the Department of Consumer and Business Services or its employees in their official capacity. [Formerly 656.586; 1971 c.418 §18; 1977 c.804 §28]
0.0K chars
[Repealed or reserved.]
ORS 656.722 Authority to employ subordinates. The Workers’ Compensation Board chairperson may employ and terminate the employment of such assistants, experts, field personnel and clerks as may be required in the administration of ORS chapter 654 and this chapter and other duties assigned to the board or the board chairperson by statute. [Formerly 656.416; 1977 c.804 §29; 1981 c.860 §§2,6; 1987 c.373 §42; 1999 c.876 §7]
0.0K chars
[Repealed or reserved.]
ORS 656.724 Administrative Law Judges; appointment; qualifications; term; performance survey; removal procedure. (1) The Workers’ Compensation Board chairperson, after consultation with the board, shall employ Administrative Law Judges to hold such hearings as may be prescribed by law. An Administrative Law Judge must be a licensee in good standing of the Oregon State Bar, or the bar of the highest court of record in any other state or currently admitted to practice before the federal courts in the District of Columbia. Administrative Law Judges shall qualify in the same manner as members of the board under ORS 656.716 (2). The board chairperson, after consultation with the board, may appoint Administrative Law Judges to serve for a probationary period of 18 months or less prior to regular employment
3.6K chars
(2) Administrative Law Judges are in the unclassified service under ORS chapter 240, and the board shall fix their salaries in accordance with ORS 240.245. (3)(a) The board chairperson, after consultation with the board, shall establish criteria whereby each Administrative Law Ju…