ORS 657B.332
False statements or failure to report material fact

  • recovery of erroneous benefit payments due to misrepresentation or nondisclosure
  • notice requirements
  • penalties
  • rules

(1)

An employer may not willfully make or cause to be made false statements or willfully fail to report a material fact regarding the claim of an eligible employee or regarding an employee’s eligibility for family and medical leave insurance benefits under this chapter.

(2)

The Director of the Employment Department may assess a civil penalty in an amount not to exceed $1,000 against an employer for each occurrence that violates subsection (1) of this section.

(3)

If the director determines that a covered individual willfully made a false statement or willfully failed to report a material fact in order to obtain benefits under this chapter, the covered individual is:

(a)

Disqualified from claiming benefits for one year; and

(b)

Liable for a penalty imposed at a rate prescribed by the director of at least 15 percent, but not greater than 30 percent, of the amount of benefits the covered individual received to which the covered individual was not entitled.

(4)

Intentionally left blank —Ed.

(a)

If the director determines that a covered individual has received benefits to which the covered individual was not entitled, the director may:

(A)

Seek repayment of benefits from the covered individual in a manner prescribed by the director by rule; or

(B)

Have the amount of the benefits deducted from any future benefits otherwise payable to the covered individual under ORS 657B.100 (Allowing or denying claim).

(b)

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

(c)

Except as provided in paragraph (d) of this subsection, 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)

Notwithstanding paragraph (c) of this subsection, overpaid benefits subject to the penalty imposed under subsection (3)(b) of this section may be collected at any time.

(e)

Notice provided to a covered individual of the covered 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 657B.336 (Waiver of recovery of overpaid benefits).

(5)

If benefits are paid because of an error that is not due to provision of a false statement, nondisclosure of a material fact or misrepresentation by a covered individual, the director may waive, in whole or in part, the amount of any such payments for which recovery under subsection (4) of this section would be against equity, good conscience or administrative efficiency.

(6)

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

(a)

That the covered individual, by reason of false statement, nondisclosure or misrepresentation, is liable to repay the amount to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 (Paid Family and Medical Leave Insurance Fund);

(b)

The nature of the false statement, nondisclosure or misrepresentation;

(c)

The week or weeks for which the benefits were paid; and

(d)

That any amount subject to recovery and any penalty due under this section may be collected by the director in a civil action against the employer or covered individual brought in the name of the director.

(7)

Intentionally left blank —Ed.

(a)

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

(b)

Any judgment rendered shall bear interest at the rate provided in subsection (8) of this section.

(8)

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 covered individual, at the rate of one percent per month. In computing the interest, a fraction of a month shall be counted as a full month.

(9)

Intentionally left blank —Ed.

(a)

Deductions from paid family and medical leave insurance benefits pursuant to subsection (4) 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.

(10)

The following amounts collected under this section shall be paid into the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 (Paid Family and Medical Leave Insurance Fund):

(a)

Amounts in repayment of benefits;

(b)

Amounts collected as interest under subsection (8) of this section; and

(c)

The penalties imposed under subsection (3)(b) of this section.

(11)

The director shall adopt rules establishing standards and procedures for the repayment of benefits and payment of penalties and interest under this section.

(12)

An employer or covered individual may appeal a determination made under this section as provided in ORS 657B.410 (Appeals process, generally). [Formerly 657B.120]
Note: Section 13 (1), chapter 120, Oregon Laws 2023, provides:

Source: Section 657B.332 — False statements or failure to report material fact; recovery of erroneous benefit payments due to misrepresentation or nondisclosure; notice requirements; penalties; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors657B.­html (accessed May 26, 2025).

657B.005
Legislative findings
657B.010
Definitions
657B.015
Benefit eligibility
657B.020
Qualifying purposes for benefits
657B.023
Determining family member by reason of affinity
657B.025
Coordination of leave
657B.030
Use of other paid leave benefits in addition to paid family and medical leave insurance benefits
657B.040
Notice to employers prior to commencing leave
657B.050
Amount of benefits
657B.060
Job protection
657B.070
Denying leave
657B.080
False statements or failure to report material fact by employer
657B.090
Claim for benefits
657B.100
Allowing or denying claim
657B.110
Continuous jurisdiction of director
657B.130
Elective coverage for certain individuals
657B.150
Contributions
657B.175
Effect of place of performance of service
657B.180
Unlawful practices of employer
657B.190
Employer’s security for payment of contributions
657B.200
Employer assistance grants
657B.210
Equivalent plans, generally
657B.220
Director review of benefits provided under equivalent plan
657B.230
Application for reapproval of plan
657B.240
Withdrawal from plan
657B.250
Portability of benefits and retention of eligibility status between jobs
657B.260
Successor in interest required to continue offering approved plan to eligible employees until withdrawal of plan
657B.280
Delinquent contributions and improper benefit payments as liens on real or personal property
657B.290
Filing of lien statement or warrant
657B.300
Alternative remedies for collection of amounts liable to be repaid
657B.310
Release, compromise or satisfaction of lien
657B.320
Delinquent contributions or grant repayments
657B.330
Liability of certain officers, members, partners or employees for amounts in default
657B.332
False statements or failure to report material fact
657B.334
Ineligibility for benefits upon conviction of fraud in obtaining benefits
657B.335
Deduction of benefits paid in error not due to recipient fault
657B.336
Waiver of recovery of overpaid benefits
657B.337
Cancellation of unrecoverable benefit payments and amounts of interest or penalties due and unpaid
657B.338
Request for offset of moneys owed to debtor by Department of Revenue against certain amounts owed by debtor
657B.339
Authority of director to compromise or adjust contribution debts or overpayments
657B.340
Family and medical leave insurance program
657B.350
Third party administrator
657B.360
Determining number of employees employed by employer
657B.370
Computation and assessment of employer contributions and interest
657B.380
Advisory committee
657B.390
Employment records
657B.400
Confidentiality of information
657B.410
Appeals process, generally
657B.420
Appeals of decisions under equivalent employer plan
657B.425
Dismissal of request or application for hearing
657B.430
Paid Family and Medical Leave Insurance Fund
657B.440
Employer required to provide notice advising employees of rights and duties
657B.460
Construction of chapter
657B.470
Preemption of local laws relating to paid family and medical leave
657B.480
State agency assistance
657B.900
Criminal penalties
657B.910
Penalty when employer fails to file contribution reports or pay contributions when due
657B.920
Penalty when employer fails to file reports
657B.925
Penalties for employer violation of requirements applicable to employer-offered benefit plans

Current through early 2026

§ 657B.332. False statements or failure to report material fact's source at oregon​.gov