Oregon Department of Consumer and Business Services, Workers' Compensation Division

Rule Rule 436-060-0200
Assessment of Civil Penalties


(1) Penalties for inducing failure to report claims. The director will assess a civil penalty under ORS 656.745 (Civil penalty for inducing failure to report claims)(1) against an employer or insurer that intentionally or repeatedly induces workers to fail to report accidental injuries, causes employees to collect accidental injury claims as off-the-job injury claims, persuades workers to accept less than the compensation due or makes it necessary for workers to resort to proceedings against the employer to secure compensation due.
(a) A penalty under this section will only be assessed after all litigation on the matter has become final by operation of the law.
(b) For the purpose of this section:
(A) “Intentionally” means the employer or insurer acted with a conscious objective to engage in the conduct or cause any result described in this section; and
(B) “Repeatedly” means more than once in any 12-month period.
(2) Penalties for failure to comply with statutes, rules, and orders. The director may assess a civil penalty under ORS 656.745 (Civil penalty for inducing failure to report claims)(2) against an employer or insurer that violates ORS chapter 656, OAR chapter 436, or orders of the director regarding reports or other requirements necessary to carry out the purposes of ORS chapter 656. Except as provided in ORS 656.780 (Certification and training of claims examiners), the director may assess a civil penalty against a service company only for claims processing violations identified in the director’s annual audits of claims processing performance. The director may assess only one penalty for each separate violation by an employer, insurer, or service company identified in an annual audit.
(3) Penalties for failure to meet time frame requirements. The director may assess a civil penalty under ORS 656.745 (Civil penalty for inducing failure to report claims)(2) against an employer or insurer that does not meet the time frame requirements in OAR 436-060-0010 (Employer Responsibilities), 436-060-0011 (Insurer Reporting Requirements), 436-060-0017 (Release of Claim Documents), 436-060-0018 (Nondisabling and Disabling Claim Reclassification), 436-060-0030 (Payment of Temporary Partial Disability Compensation), 436-060-0060 (Lump Sum Payment of Permanent Partial Disability Awards), 436-060-0140 (Acceptance or Denial of a Claim), 436-060-0147 (Worker Requested Medical Examination), 436-060-0155 (Penalty to Worker for Untimely Processing) and 436-060-0180 (Designation and Responsibility of a Paying Agent). The director may assess a civil penalty under ORS 656.745 (Civil penalty for inducing failure to report claims)(2) against a service company that does not meet the time frame requirements, only for violations identified in the director’s annual audits of claims processing performance. The director may assess only one penalty for each separate violation by an employer, insurer, or service company identified in an annual audit.
(4) Penalties for use of sight draft to pay compensation. The director may assess a civil penalty under ORS 656.745 (Civil penalty for inducing failure to report claims)(2) against an insurer that willfully violates OAR 436-060-0160 (Use of Sight Draft to Pay Compensation Prohibited).
(5) Penalties for inaccurate reporting of first payment timeliness. The director may assess a civil penalty under ORS 656.745 (Civil penalty for inducing failure to report claims)(2) against an insurer that does not accurately report timeliness of first payment information to the division. The director may assess this civil penalty against the service company processing the insurer’s claims if the violations were identified in the director’s annual audits of claims processing performance. The director may assess only one penalty for each separate violation by an insurer or service company identified in an annual audit. For the purposes of this section, a violation consists of each situation in which a first payment was reported to have been made timely, but was found upon audit to have actually been late.
(6) Penalties for failure to comply with claims processing requirements. Notwithstanding section (3) of this rule, the director may assess civil penalties under ORS 656.745 (Civil penalty for inducing failure to report claims)(2) against an employer, insurer, or service company for each violation of the claims processing requirements of ORS chapter 656, OAR chapter 436, or orders of the director. For the purpose of this section, the statutory claims processing requirements include but are not limited to, ORS 656.202 (Compensation payable to subject worker in accordance with law in effect at time of injury), 656.210 (Temporary total disability), 656.212 (Temporary partial disability), 656.228 (Payments directly to beneficiary or custodian), 656.234 (Compensation not assignable nor to pass by operation of law), 656.236 (Compromise and release of claim matters except for medical benefits), 656.245 (Medical services to be provided), 656.262 (Processing of claims and payment of compensation), 656.263 (To whom notices sent under ORS 656.262, 656.265, 656.268 to 656.289, 656.295 to 656.325 and 656.382 to 656.388), 656.264 (Compensable injury, denied claim and other reports), 656.265 (Notice of accident from worker), 656.268 (Claim closure), 656.273 (Aggravation for worsened conditions), 656.307 (Determination of issues regarding responsibility for compensation payment), 656.313 (Stay of compensation pending request for hearing or review), 656.325 (Required medical examination), and 656.331 (Contact, medical examination of worker represented by attorney prohibited without written notice).
(7) Penalties for misrepresentation to obtain claims records. The director may assess a civil penalty of $1,000 against any employer or insurer that misrepresents itself in any manner to obtain workers’ compensation claims records from the director, or that uses such records in a manner contrary to these rules. In addition, the director may suspend or revoke:
(a) An employer’s or insurer’s access to workers’ compensation claims records for such time as the director may determine; or
(b) Any other person’s access to workers’ compensation claims records if the director determines they have misrepresented themselves or used records in a manner contrary to these rules.
(8) Performance audits. Insurers will be subject to periodic performance audits. Civil penalties may be issued for each area where the insurer’s performance falls below the acceptable standards set forth in the rules and orders of the director.
(9) Considerations for assessing penalties. In arriving at the amount of penalty under this rule, the director may consider, but is not limited to:
(a) The ratio of the volume of violations to the volume of claims reported;
(b) The ratio of the volume of violations to the average volume of violations for all insurers; and
(c) Prior performance in meeting the requirements outlined in this section.
(10) Penalty to worker’s attorney for failure to cooperate with insurer’s investigation. The director may assess a civil penalty not to exceed $1,000 against a worker’s attorney that is unreasonably unwilling or unavailable to participate in an insurer’s interview as required by ORS 656.262 (Processing of claims and payment of compensation)(14).
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Last accessed
Jun. 8, 2021