ORS 652.125
Bond required when failure to make timely wage payment occurs

  • court to enjoin business of employer failing to provide bond


If, upon complaint by an employee, and after investigation, it appears to the Commissioner of the Bureau of Labor and Industries that an employer is failing to pay wages within five days of a payday scheduled by the employer, the commissioner may require the employer to give a bond in such amount as the commissioner determines necessary, with sufficient surety, to assure timely payment of wages due employees for such future period as the commissioner considers appropriate. In lieu of a bond, the commissioner may accept a letter of credit from an issuer approved by the commissioner, upon such terms and conditions and for such amount as the commissioner determines necessary to assure timely payment of wages for such future period as the commissioner determines appropriate.


If, within 10 days after demand for such bond, the employer fails to provide the same, the commissioner may commence court action against the employer in the circuit court of appropriate jurisdiction to compel the employer to furnish such bond or cease doing business until the employer has done so. The employer shall have the burden of proving the amount thereof to be excessive.


If the court finds that there is just cause for requiring such bond and that the same is reasonably necessary or appropriate to secure the prompt payment of the wages of the employees of such employer, the court shall enjoin such employer from doing business in this state until the requirement is met, or shall make other, and may make further, orders appropriate to compel compliance with the requirement. [1989 c.651 §3]
Note: 652.125 (Bond required when failure to make timely wage payment occurs) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 652 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
§§ 652.110 to 652.405

Notes of Decisions

Where employer was charged with criminal violation of Massachusetts payment of wages statute for failing to pay discharged employees for their unused vacation time, employer's policy of paying discharged employees for unused vacation time was not "employee welfare benefits plan" under section 3 (1) of Employee Retirement Income Security Act of 1974 (ERISA) and criminal action to enforce that policy is therefore not foreclosed by section 514 (a) of ERISA. Massachusetts v. Morash, 490 U.S. 107, 109 S. Ct. 1668, 104 L.Ed 98 (1989)

It is unnecessary to imply private right of action for employee against secured creditor in possession under ORS 652.310 to 652.405 when to do so would render provisions of ORS 652.110 to 652.250 superfluous. Stout v. Citicorp Industrial Credit, Inc., 102 Or App 637, 796 P2d 373 (1990), Sup Ct review denied


Last accessed
Jun. 26, 2021