Penalty wage for failure to pay wages on termination of employment
Source:
Section 652.150 — Penalty wage for failure to pay wages on termination of employment, https://www.oregonlegislature.gov/bills_laws/ors/ors652.html.
Notes of Decisions
Employer “willfully” fails to pay wages or compensation if employer is aware of and intends action, whether or not acting with malice or in bad faith. Sabin v. Willamette-W. Corp., 276 Or 1083, 557 P2d 1344 (1976)
Notwithstanding employe’s initial waiver of immediate payment of severance pay, employer became liable for penalty for nonpayment upon refusal of employe’s subsequent demands for immediate payment. Crofoot v. Columbia-Willamette Air Pollution Authority, 31 Or App 903, 571 P2d 1266 (1977)
Computation of wage penalty for piecework roofing employes by determining hourly wage and assuming 8-hour day to compute employe’s daily wage was proper under this section, in absence of evidence that roofers would not ordinarily work 8-hour day. Braddock v. Capfer, 284 Or 237, 586 P2d 340 (1978)
Where trial court found defendant intentionally did not pay plaintiff although it had ability to do so, defendant’s action was “willful” within meaning of this section. Schulstad v. Hudson Oil Co., 55 Or App 323, 637 P2d 1334 (1981), Sup Ct review denied
Although evidence showed that defendant had difficulty in processing payment for all plaintiff’s wages on her last day of work, it supported finding that defendant’s delay was “willful” within meaning of this section. Putnam v. Department of Justice, 58 Or App 111, 647 P2d 949 (1982)
Where plaintiffs instituted action to collect their commissions on the date the commissions were due, the due date and date of commencement of the action were the same and no penalty was assessable under this section. Reed v. Curry-Kropp-Cates, Inc., 61 Or App 520, 658 P2d 531 (1983)
Corporate officer and shareholder who is also corporate employe may recover penalty wages under this section. Wyss v. Inskeep, 73 Or App 661, 699 P2d 1161 (1985), Sup Ct review denied
Term “willfully” as it appears in this section means that employer knew what it was doing, intended to do it, and was free agent; showing of good faith does not preclude finding of willful failure to pay. Kling v. Exxon, 74 Or App 399, 703 P2d 1021 (1985)
Plaintiff was entitled to civil penalty under this section where defendant’s nonpayment of wages was willful and intentional, regardless of whether refusal to pay was based on misunderstanding. Wells v. Carson, 78 Or App 536, 717 P2d 640 (1986)
State is “employer” within meaning of this section. Pope v. Judicial Dept., 79 Or App 732, 721 P2d 462 (1986)
Where employer, after discharge of employe, failed to pay all wages owing as required by ORS 652.140, because employe retained certain of employer’s equipment, failure was “willful” and employe was entitled to penalty wages under this section. Emery v. Portland Typewriter & Office Machine, 86 Or App 635, 740 P2d 218 (1987)
Where parties to contract were domiciled and contracted in Oregon, contractor was licensed in Oregon and only relevant event that took place outside state was performance of labor, Oregon statute governing contracts between forestry contractors and workers is applicable to action for unpaid wages. Perez v. Coast to Coast Reforestation Corp., 100 Or App 115, 785 P2d 365 (1990)
Voluntary overpayment at time of termination does not act as credit against penalty for unpaid wages unless overpayment reflects intent to satisfy wage-claim obligations. Stanich v. Precision Body and Paint, Inc., 151 Or App 446, 950 P2d 328 (1997)
Failure to pay wages may be done “willfully,” notwithstanding subjective good-faith belief that wages are not due. Vento v. Versatile Logic Systems Corp., 167 Or App 272, 3 P3d 176 (2000)
Untimely payment of wages to terminated employee does not automatically also constitute failure to pay minimum wage. Hurger v. Hyatt Lake Resort, Inc., 170 Or App 320, 13 P3d 123 (2000), Sup Ct review denied
Penalty for failure to pay wages continues to accrue on nonwork days. Richardson v. Sunset Science Park Credit Union, 268 F3d 654 (9th Cir. 2001)
Where employer failed to pay overtime wages, subsequent termination of employment did not provide basis for additional claim based on nonpayment of same wages at termination. Mathis v. Housing Authority of Umatilla County, 242 F. Supp. 2d 777 (D. Or. 2002)
Award of penalty under this section and award of liquidated damages under federal Fair Labor Standards Act does not provide double recovery, although amount of prejudgment interest is subject to reduction for liquidated damages. Mathis v. Housing Authority of Umatilla County, 242 F. Supp. 2d 777 (D. Or. 2002)
Where same action is violation of Oregon law and federal Fair Labor Standards Act, claimant may recover penalty under this section or federal Act, whichever is greater. Mathis v. Housing Authority of Umatilla County, 242 F. Supp. 2d 777 (D. Or. 2002)
Penalty for failure to pay wages and compensation of “employee whose employment ceases” applies for all amounts earned and unpaid, not just amount owed for final pay period. Salinas v. One Stop Detail, 194 Or App 457, 95 P3d 745 (2004), Sup Ct review denied
Employer “willfully” fails to pay wages only if employer has, or reasonably should have, full knowledge of payment obligation, but consciously and voluntarily decides not to fulfill obligation. Wilson v. Smurfit Newsprint Corp., 197 Or App 648, 107 P3d 61 (2005), Sup Ct review denied
Where employer makes unlawful deduction in violation of ORS 652.610 and fails to remedy unlawful deduction within statutory deadline for payment of wages under ORS 652.140, employer is subject to paying both penalty under ORS 652.615 for unlawful deduction and under this section for untimely payment of wages. Wilson v. Smurfit Newsprint Corp., 197 Or App 648, 107 P3d 61 (2005), Sup Ct review denied
Interest at rate set in ORS 82.010 begins accruing on penalty wages 30 days after willful nonpayment occurs. Wilson v. Smurfit Newsprint Corp., 197 Or App 648, 107 P3d 61 (2005), Sup Ct review denied
Penalty wage claim for work on public contract is not claim for labor that may be recovered from surety bond. North Marion School District #15 v. Acstar Insurance Co., 205 Or App 484, 136 P3d 42 (2006), aff’d 343 Or 305, 169 P3d 1224 (2007)
Employer who does not timely pay employee’s earned wages becomes liable for single penalty, and magnitude of penalty depends on duration of employer’s failure to pay. Russell v. U.S. Bank National Association, 246 Or App 74, 265 P3d 1 (2011)
“Wages” does not include post-judgment interest. Young v. State of Oregon, 246 Or App 115, 265 P3d 32 (2011), Sup Ct review denied
Defendant employer’s failure to pay wages as result of rounding of employees’ hours worked was not “willful” because applicable law was unclear to extent that employer did not reasonably have sufficient level of awareness of its obligation to pay wages. Eisele v. Home Depot U.S.A., Inc., 643 F. Supp. 3d 1166 (D. Or. 2022)
Up to date