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

Rule Rule 436-180-0160
Suspension or Revocation of License


(1) General. The director may suspend or revoke a worker leasing license for reasons including, but not limited to:
(a) Failure to comply with the provisions of ORS chapters 654, 656, 659, 659A, 731 or 737; or these rules;
(b) Denial, suspension, or revocation of a license, registration, or certification, or other disciplinary action by any governmental agency or entity involving worker leasing activities;
(c) Nonpayment of taxes, fees, assessments, civil penalties, or any other moneys due the State of Oregon or another jurisdiction;
(d) Filing for bankruptcy, being declared bankrupt, or being the subject of other proceedings related to default on or delinquency of payment of financial obligations;
(e) Insolvency, if the worker leasing company’s liabilities exceed its assets or the worker leasing company cannot meet its financial obligations;
(f) A conviction, guilty plea, or plea of no contest, within the last 10 years, for any felony or misdemeanor involving dishonesty or misrepresentation, including but not limited to fraud, theft, burglary, embezzlement, deception, perjury, forgery, counterfeiting, bribery, extortion, money laundering; or violations involving securities, investments, or insurance violations on the part of the applicant or any controlling person; or
(g) The worker leasing company or controlling person is permanently or temporarily enjoined by a court from engaging in or continuing any conduct or practice involving any aspect of the worker leasing business.
(2) Show-cause hearing. Except as described under section (3) of this rule, the director will not suspend or revoke a worker leasing license until the worker leasing company has been given notice and the opportunity to be heard through a show-cause hearing with the director.
(a) During the show-cause hearing, the worker leasing company will be provided an opportunity to:
(A) Present evidence regarding any proposed orders by the director to suspend or revoke the worker leasing company’s license; and
(B) Give reason why the worker leasing company should be permitted to continue performing services as a worker leasing company.
(b) A show-cause hearing may be held at any time the director finds that a worker leasing company has failed to comply with the requirements of ORS chapter 656, these rules, or the orders of the director.
(3) Emergency order of suspension or revocation. Notwithstanding section (2) of this rule, the director may immediately:
(a) Suspend a license by issuing an “emergency suspension order” if:
(A) The worker leasing company fails to maintain coverage; or
(B) The director finds there is a serious danger to public health or safety; or
(b) Revoke a license upon discovery of a misrepresentation in the information submitted in the worker leasing application.
(4) Suspension of license. If the director suspends a worker leasing license:
(a) The worker leasing company and any controlling person may not lease workers to clients for a specified period of time, up to two years;
(b) The suspension may apply to any new worker leasing company created through the sale, transfer, or conveyance of ownership or of the worker leasing company’s assets to another person; and
(c) When the suspension expires, the worker leasing company or controlling person may petition the director to resume its worker leasing company activities, or apply to renew its worker leasing license under OAR 436-180-0140 (Qualifications, Applications, and Renewals for License as a Worker Leasing Company).
(5) Revocation of license. If the director revokes a worker leasing license:
(a) The worker leasing company, and any controlling person may not lease workers to clients for at least five years;
(b) The revocation may apply to any new worker leasing company created through the sale, transfer, or conveyance of ownership or of the worker leasing company’s assets to another person; and
(c) After a revocation has been in effect for five years or longer, the worker leasing company or controlling person may reapply for license under OAR 436-180-0140 (Qualifications, Applications, and Renewals for License as a Worker Leasing Company).
(6) Appeal of suspension or revocation. A proposed and final order of suspension or revocation issued under this rule may be appealed under OAR 436-180-0008 (Requests for Hearings or Administrative Review) and OAR 436-001.
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Last accessed
Jun. 8, 2021