ORS 658.185
Limitation on charges
- manner of calculating certain charges
- credits and refunds
(1)
As used in this section:(a)
“Permanent employment” means all employment that lasts 90 calendar days or more.(b)
“Temporary employment” means employment that is contemplated at the time of referral by an employment agency to last less than 90 calendar days regardless of the reason for termination of the employment.(2)
Intentionally left blank —Ed.(a)
If an individual is employed in temporary employment through the services of an employment agency, the charge for services paid by the individual shall not exceed one-ninetieth of the charge for permanent employment for each consecutive calendar day during the period the individual is employed or compensated as though employed.(b)
If an individual leaves employment within 90 days after the starting date of employment, the employment agency shall reduce the charge for services payable by the individual to that payable for temporary employment under paragraph (a) of this subsection and shall refund any charge paid in excess of that amount.(c)
Notwithstanding the other provisions of this section, in no instance in which the employment secured is subsequently terminated shall the charge for services by an employment agency be greater than the total gross earnings of the individual.(d)
All interest, fees or other charges paid or required to be paid to any person or organization in order to procure the funds to pay an employment agency’s charge for services shall be allowed as a credit against the charge. The provisions of this paragraph shall be stated in all contracts provided for in ORS 658.172 (Job referral requirements).(e)
A refund when due shall be made within 10 days after request therefor by the individual. If the decision of the employment agency is not to make a refund, the agency shall notify the individual in writing, within such 10-day period, as to the specific reasons or circumstances for which the refund is not made. If the agency fails to properly notify the individual or fails to tender a refund within the 10-day period, the agency shall be liable to the individual in the amount of an additional sum equal to the amount of the refund.(3)
Intentionally left blank —Ed.(a)
If an individual secures employment in which the individual is to be paid on the basis of straight commissions, or a drawing account against commissions, or either a drawing account or salary plus commissions, the charge for services payable by the individual may be predicated upon the projected total gross earnings of the individual during the first year of employment as estimated by the employer and upon the employer demonstrating to the agency reasonable grounds therefor.(b)
Upon the conclusion of the individual’s first six months and the conclusion of the individual’s second six months of employment, a computation of the individual’s actual total gross earnings may be provided by the individual to the agency, and, predicated upon appropriate proof of such earnings, an adjustment in the charge for services shall be made by which either the agency shall refund to the individual any excess charge paid by the individual or the individual shall pay to the agency any deficiency thereon.(c)
If the individual’s employment is terminated prior to the conclusion of the first 12 months of employment, the actual total gross earnings of the individual for the period of employment shall be projected to 12 months on a pro rata basis as though the individual had been employed for the entire period of 12 months, and a computation shall be made thereon. The charge for services paid or payable by the individual shall be predicated upon such computation as though the individual had been so employed. [1953 c.694 §18; 1961 c.380 §18; 1969 c.493 §97; 1973 c.678 §17; 1981 c.318 §22; 1997 c.55 §13]
Source:
Section 658.185 — Limitation on charges; manner of calculating certain charges; credits and refunds, https://www.oregonlegislature.gov/bills_laws/ors/ors658.html.
Notes of Decisions
Limitation on employment agency fees does not apply to employer-paid fees. McDuffy, Edwards and Assoc. v. Peripheral Systems, 93 Or App 226, 762 P2d 299 (1988)
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