ORS 656.745: Civil penalty for inducing failure to report claims; limits on penalty amounts; failure to pay assessments; failure to comply with statutes, rules or orders; amount; procedure.
Edition: 2025 EditionEffective: 2026-01-01Last verified: 2026-09-07
(1)(a) The Director of the Department of Consumer and Business Services shall assess a civil penalty against an employer or insurer that intentionally or repeatedly induces claimants for compensation to fail to report accidental injuries, causes employees to collect accidental injury claims as off-the-job injury claims, persuades claimants to accept less than the compensation due or makes it necessary for claimants to resort to proceedings against the employer to secure compensation due. (b) The director may not assess under this subsection more than $2,000 for each violation or more than $40,000 in the aggregate for violations during a calendar year. Each violation, or each day during which a violation continues, constitutes a separate violation. (2)(a) The director may assess a civil penalty against an employer, self-insured employer, insurer, managed care organization or service company that: (A) Fails to pay assessments or other payments due to the director under this chapter and is in default; or (B) Fails to comply with statutes, rules or orders of the director regarding reports or other requirements necessary to carry out the purposes of this chapter. (b) The director may not assess under this subsection a civil penalty against a self-insured employer, insurer or service company that exceeds $4,000 for each violation or $180,000 in the aggregate for violations during a calendar year. Each violation, or each day during which a violation continues, constitutes a separate violation. (c) The director may not assess under this subsection a civil penalty against an employer, except a self-insured employer, or managed care organization that exceeds $2,000 for each violation or $40,000 in the aggregate for violations during a calendar year. Each violation, or each day during which a violation continues, constitutes a separate violation. (3) Except as specified in ORS 656.780, the director may assess a penalty under subsection (2) of this section against a service company only for claims processing performance deficiencies revealed in annual audits associated with claims processing performance. The director may assess only one penalty for each separate violation by an employer, insurer or service company for deficiencies revealed in annual audits associated with claims processing performance. (4) ORS 656.735 (4) to (6) and 656.740 also apply to orders and penalties assessed under this section. [1975 c.556 §38; 1979 c.839 §31; 1987 c.233 §2; 1987 c.884 §46; 2003 c.170 §13; 2005 c.221 §3; 2007 c.270 §9; 2015 c.194 §1; 2019 c.7 §1]
Administrative rules citing this section
- OAR 436-030-0020: Temporary rule language in effect until 10/04/2026. Requirements for Claim Closure — implements
- OAR 436-030-0175: Fees and Penalties within the Reconsideration Proceeding — implements
- OAR 436-050-0500: Assessment of Civil Penalties — implements
- OAR 436-060-0010: Temporary rule language in effect until 10/04/2026. Employer Responsibilities — implements
- OAR 436-060-0010: Temporary rule language in effect until 10/04/2026. Employer Responsibilities — authority
- OAR 436-060-0015: Required Notice and Information — implements
- OAR 436-060-0015: Required Notice and Information — authority
- OAR 436-060-0017: Release of Claim Documents — implements
- OAR 436-060-0017: Release of Claim Documents — authority
- OAR 436-060-0018: Nondisabling and Disabling Claim Reclassification — implements
- OAR 436-060-0018: Nondisabling and Disabling Claim Reclassification — authority
- OAR 436-060-0180: Designation and Responsibility of a Paying Agent — implements
- OAR 436-060-0180: Designation and Responsibility of a Paying Agent — authority
- OAR 436-060-0200: Assessment of Civil Penalties — implements
- OAR 436-070-0050: Assessment of Civil Penalties — implements
- OAR 436-075-0008: Administrative Review — implements
- OAR 436-075-0100: Assessment of Civil Penalties — authority
- OAR 436-085-0060: Assessment of Civil Penalties — implements
- OAR 436-140-0120: Sanctions and Civil Penalties; Rule Violations — implements
- OAR 603-082-0010: Purpose — implements
- OAR 603-082-0020: Definitions — implements
This rule cites
- ORS 656.780 — resolved
- ORS 656.735 — resolved
Cited by
- ORS 656.434: Certification effective until canceled or revoked; revocation of certificate.
- ORS 656.443: Procedure upon default by employer or self-insured employer group; rules.
- OAR 436-001-0030: Role of the Workers’ Compensation Division
- OAR 436-001-0600: Multilingual Help Page
- OAR 436-008-0040: Assessment of Civil Penalties
- OAR 436-009-0008: Request for Review before the Director
- OAR 436-010-0008: Request for Review before the Director
- OAR 436-010-0340: Sanctions and Civil Penalties
- OAR 436-015-0008: Request for Review before the Director
- OAR 436-015-0080: Suspension; Revocation
- OAR 436-015-0120: Sanctions and Civil Penalties
- OAR 436-030-0580: Penalties and Sanctions
- OAR 436-040-0090: Assessment of Civil Penalties
- OAR 436-045-0008: Administrative Review
- OAR 436-050-0190: Using Self-Insured Employers' Security Deposit/Self-Insured Employer Adjustment Reserve/Self-Insured Employer Group Adjustment Reserve/Director-Ordered Assessments of Private Employer Members of Self-Insured Employer Groups
- OAR 436-050-0200: Self-Insured Certification Cancellation; Revocation
- OAR 436-050-0340: Group Self-Insurance Revocation
- OAR 436-050-0500: Assessment of Civil Penalties
- OAR 436-055-0110: Assessment of Civil Penalties
- OAR 436-060-0200: Assessment of Civil Penalties
- OAR 436-070-0008: Administrative Review
- OAR 436-070-0050: Assessment of Civil Penalties
- OAR 436-075-0008: Administrative Review
- OAR 436-075-0100: Assessment of Civil Penalties
- OAR 436-085-0060: Assessment of Civil Penalties
- OAR 436-105-0560: Sanctions
- OAR 436-120-0008: Administrative Review and Hearings
- OAR 436-120-0900: Audits, Penalties and Sanctions
- OAR 436-140-0120: Sanctions and Civil Penalties; Rule Violations
- OAR 436-150-0008: Administrative Review
- OAR 436-150-0040: Accounting and Repayment of Payment of Benefits
- OAR 436-160-0415: Oregon ASC X12 837 Medical Bill Data Reporting Requirements
- OAR 436-160-0445: Assessment of Civil Penalties
- OAR 436-162-0400: Monitoring and Auditing Insurers
- OAR 436-162-0440: Assessment of Civil Penalties
Official source: https://www.oregonlegislature.gov/bills_laws/ors/ors656.html