Workers’ Compensation

ORS 656.580
Payment of compensation notwithstanding cause of action for damages

  • lien on cause of action for compensation paid


The worker or beneficiaries of the worker, as the case may be, shall be paid the benefits provided by this chapter in the same manner and to the same extent as if no right of action existed against the employer or third party, until damages are recovered from such employer or third party.


The paying agency has a lien against the cause of action as provided by ORS 656.591 (Election not to bring action operates as assignment of cause of action) or 656.593 (Procedure when worker or beneficiary elects to bring action), which lien shall be preferred to all claims except the cost of recovering such damages. [Formerly 656.314]

Notes of Decisions

Recovery from third party does not terminate right to receive medical treatment benefits. SAIF v. Parker, 61 Or App 47, 656 P2d 335 (1982)

Paying agency had lien against action for attorney malpractice based on attorney’s negligent failure to recover compensation for injured worker directly from responsible third party. Toole v. EBI Companies, 314 Or 102, 838 P2d 60 (1992)


Last accessed
May 30, 2023