OAR 436-110-0335
Wage Subsidy General Provisions


Wage subsidy provides an employer with partial reimbursement of a worker’s gross wages for a specified period. Wage subsidy benefits are subject to the following conditions:

(1)

Wage subsidy agreement form. A completed Form 2190, “Preferred Worker Wage Subsidy Agreement,” must be submitted to the division. Signature and time frame requirements for employer at injury activated wage subsidy are in OAR 436-110-0336 (Wage Subsidy — Employer at Injury Activated)(2), and requirements for worker-activated wage subsidy are in OAR 436-110-0337 (Wage Subsidy — Worker Activated)(1).

(2)

Effective date. The effective date of the wage subsidy agreement is mutually agreed to by the director, employer, and worker if applicable.

(3)

Time limits, reimbursement rate. A wage subsidy is limited to a duration of 183 calendar days and a reimbursement rate of 50 percent for the approved period. For a worker with an exceptional disability, a wage subsidy duration is limited to 365 calendar days and a reimbursement rate of 75 percent for the approved period.

(4)

Interruption and extension of agreement. A wage subsidy agreement may be interrupted once for reasonable cause and extended to complete the agreement on a whole workday basis. Reasonable cause includes, but is not limited to, personal or family illness, death in the worker’s family, pregnancy of the worker or worker’s spouse, a compensable injury to the worker, participation in an Employer-at-Injury Program, or layoff. A layoff must be a minimum of 10 consecutive work days. A period of time during which the employer is without workers’ compensation insurance coverage is not reasonable cause and no extension will be granted.

(5)

Pay structure. A preferred worker’s pay structure must be the same as the pay structure for other workers employed in similar jobs by the employer.

(6)

Prevailing wage. Wages subject to reimbursement must be within the prevailing wage range for that occupation. The prevailing wage range is determined as follows:

(a)

Examine the wages paid by the employer for other workers doing the same job;

(b)

If no other workers are doing the same job, a labor market survey of the local labor market may be conducted; and

(c)

If the labor market survey does not support the wage rate requested, the director will determine the wage subject to reimbursement.

(7)

May not be combined with vocational training. Preferred Worker Program wage subsidies may not be combined with a wage reimbursement for a training plan under OAR 436-120, “Vocational Assistance to Injured Workers.”

(8)

Changes in employer. If the worker’s employer changes during the wage subsidy agreement period due to a sale of the business, incorporation, or merger, the agreement can be transferred to the new employer by an addendum to the agreement approved by the director as long as the worker’s job remains the same and the new employer is eligible under OAR 436-110-0310 (Eligibility and End of Eligibility for the Preferred Worker Program)(1).

(9)

Reimbursement requests.

(a)

A completed and signed Form 2968, “Preferred Worker Program Wage Subsidy Reimbursement Request,” must be submitted to the division with a legible copy of the worker’s payroll records.

(b)

Payroll records must include:

(A)

The date of payment;

(B)

The dates of work covered by the payment;

(C)

The rate or rates of pay;

(D)

Gross wages;

(E)

The regular hourly rate or rates of pay, the number of regular hours worked, and pay for those hours;

(F)

The number of overtime hours worked, if any, and pay for those hours; and

(G)

The overtime rate or rates of pay.

(c)

All requests for reimbursement must be made within one year of the wage subsidy agreement end date.

(10)

May not be used for regular work. Wage subsidy may not be used if the worker has permanent restrictions but returns to regular work.
[ED. NOTE: Forms referenced available from the agency.]

Source: Rule 436-110-0335 — Wage Subsidy General Provisions, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=436-110-0335.

Last Updated

Jun. 8, 2021

Rule 436-110-0335’s source at or​.us