ORS 657.310
Repayment or deduction of benefits paid due to misrepresentation by recipient

director discretion
penalty for fraud
time limits on collection
civil action by director
disposition of amounts collected
rules

Text
Annotations 4

(1)

(a)

If the Director of the Employment Department decides that an individual received any benefits under this chapter to which the individual is not entitled because the individual, regardless of the individual’s knowledge or intent, made or caused to be made a false statement or misrepresentation of a material fact, or failed to disclose a material fact, the individual is liable:

(A)

To repay the amount of the benefits to the director for the Unemployment Compensation Trust Fund; or

(B)

To have the amount of the benefits deducted from any future benefits otherwise payable to the individual under this chapter.

(b)

For purposes of paragraph (a)(B) of this subsection, the director may deduct all or any part of the individual’s future weekly benefits.

(c)

Except as provided in subsection (2)(b) of this section, benefits described in paragraph (a) of this subsection may be collected for any week or weeks within five years following the week in which the decision establishing the erroneous payment became final.

(d)

Notice provided to an individual of the individual’s liability for recovery of benefits under this section must include a description of:

(A)

The basis for the director’s decision that benefits have been overpaid; and

(B)

The consequences of the overpayment, including the methods of recovery of the overpaid amount, with interest and penalties, and the possibility of waiver under ORS 657.317 (Waiver of recovery of overpaid benefits).

(2)

Intentionally left blank —Ed.

(a)

In addition to the liability described in subsection (1) of this section, an individual who has been disqualified for benefits under ORS 657.215 (Disqualification for misrepresentation) is liable for a penalty imposed at a rate prescribed by the director of at least 15, but not greater than 30, percent of the amount of benefits the individual received to which the individual was not entitled.

(b)

Notwithstanding subsection (1)(c) of this section, overpaid benefits that are subject to the penalty imposed under this subsection may be collected at any time.

(3)

A decision of the director under this section does not authorize the recovery of the amount of any benefits paid to an individual until the decision is final and the decision specifies:

(a)

That the individual, by reason of the false statement, misrepresentation or nondisclosure, is liable to repay the amount to the Unemployment Compensation Trust Fund;

(b)

The nature of the false statement, misrepresentation or nondisclosure; and

(c)

The week or weeks for which the benefits were paid.

(4)

Intentionally left blank —Ed.

(a)

The director may bring a civil action against an individual to collect any amount subject to recovery and any penalty due under this section.

(b)

Judgment rendered shall bear interest at the rate provided in subsection (5) of this section.

(5)

Interest on any amount liable to be repaid under this section shall be paid and collected at the same time repayment of benefits is made by the individual, at the rate of one percent per month or fraction of a month, beginning on the first day of the month following 60 days after the finality of the administrative decision establishing the overpayment.

(6)

Intentionally left blank —Ed.

(a)

Deductions from unemployment insurance benefits pursuant to subsection (1)(a)(B) of this section shall be applied solely to the amount of the benefits liable to be repaid under this section.

(b)

All other payments shall be applied first to court costs, then to penalties, then to interest, then to the amount liable to be repaid.

(7)

Intentionally left blank —Ed.

(a)

The following amounts collected under this section shall be paid into the Unemployment Compensation Trust Fund:

(A)

Amounts in repayment of benefits; and

(B)

The portion of penalties imposed under subsection (2) of this section that is 15 percent of the amount of benefits received.

(b)

The following amounts collected under this section shall be paid into the Employment Department Special Fraud Control Fund in accordance with the provisions of ORS 657.400 (Employment Department Special Fraud Control Fund):

(A)

Interest other than interest described in paragraph (c) of this subsection; and

(B)

The portion of penalties imposed under subsection (2) of this section that remains after subtraction of the portion of penalties described in paragraph (a)(B) of this subsection.

(c)

Interest payable on any portion of benefits that were funded by the federal government shall be paid to the United States Department of Labor.

(8)

The director shall adopt rules establishing standards and procedures for the repayment of benefits and payment of penalties and interest under this section. [Amended by 1963 c.14 §1; 1997 c.372 §1; 2005 c.182 §3; 2007 c.87 §2; 2013 c.703 §1; 2021 c.388 §1]

Note: Section 4, chapter 388, Oregon Laws 2021, provides:

Sec. 4. The amendments to ORS 657.310 (Repayment or deduction of benefits paid due to misrepresentation by recipient), 657.315 (Deduction of benefits paid in error not due to recipient fault) and 657.317 (Waiver of recovery of overpaid benefits) by sections 1 to 3 of this 2021 Act apply to benefits determined to have been overpaid before, on or after the effective date of this 2021 Act [June 23, 2021]. [2021 c.388 §4]

Source: Section 657.310 — Repayment or deduction of benefits paid due to misrepresentation by recipient; director discretion; penalty for fraud; time limits on collection; civil action by director; disposition of amounts collected; rules, https://www.oregonlegislature.gov/bills_laws/ors/ors657.html.

Notes of Decisions

Where weekly claim forms provided by Employment Division asked claimant to report income-producing work done during reporting period, claimant did not make material misrepresentation in not reporting assisting wife on farm, because he received no remuneration. Shaffer v. Employment Division, 33 Or App 537, 577 P2d 85 (1978)

There was substantial evidence to support finding that petitioner was not unemployed during weeks in question and, under this section, he was required to repay benefits received even though he claimed compensation received was for his son’s benefit. Cook v. Employment Div., 47 Or App 437, 614 P2d 1193 (1980), Sup Ct review denied

Restitution is criminal sanction and not intended to be equivalent of civil award and, although defendant satisfied restitution ordered as part of sentence on conviction for theft involving unlawful obtainment of unemployment benefits, that determination did not collaterally estop plaintiff, administrator of Employment Division, from bringing civil action for recovery of unlawfully obtained benefits because issue resolved in criminal case was not same as issue to be resolved in civil case. Thorne v. Gay, 92 Or App 251, 758 P2d 380 (1988)

Decision regarding liability for overpayment “has become final” for purposes of allowing Employment Department to seek repayment notwithstanding that ruling regarding existence of misrepresentation is on appeal. Employment Dept. v. Clark, 187 Or App 431, 67 P3d 991 (2003)

California:	Codes
Colorado:	C.R.S.
Nevada:	NRS
New York:	Laws
Oregon:	OAR, ORS
Texas:	Statutes
World:	Rome Statute, International Dictionary

ORS 657.310 Repayment or deduction of benefits paid due to misrepresentation by recipient

(1)

(a)

(A)

(B)

(b)

(c)

(d)

(A)

(B)

(2)

(a)

(b)

(3)

(a)

(b)

(c)

(4)

(a)

(b)

(5)

(6)

(a)

(b)

(7)

(a)

(A)

(B)

(b)

(A)

(B)

(c)

(8)

Notes of Decisions

ORS 657.310
Repayment or deduction of benefits paid due to misrepresentation by recipient