2017 ORS 652.125¹
Bond required when failure to make timely wage payment occurs
  • court to enjoin business of employer failing to provide bond

(1) If, upon complaint by an employee, and after investigation, it appears to the Commissioner of the Bureau of Labor and Industries that an employer is failing to pay wages within five days of a payday scheduled by the employer, the commissioner may require the employer to give a bond in such amount as the commissioner determines necessary, with sufficient surety, to assure timely payment of wages due employees for such future period as the commissioner considers appropriate. In lieu of a bond, the commissioner may accept a letter of credit from an issuer approved by the commissioner, upon such terms and conditions and for such amount as the commissioner determines necessary to assure timely payment of wages for such future period as the commissioner determines appropriate.

(2) If, within 10 days after demand for such bond, the employer fails to provide the same, the commissioner may commence court action against the employer in the circuit court of appropriate jurisdiction to compel the employer to furnish such bond or cease doing business until the employer has done so. The employer shall have the burden of proving the amount thereof to be excessive.

(3) If the court finds that there is just cause for requiring such bond and that the same is reasonably necessary or appropriate to secure the prompt payment of the wages of the employees of such employer, the court shall enjoin such employer from doing business in this state until the requirement is met, or shall make other, and may make further, orders appropriate to compel compliance with the requirement. [1989 c.651 §3]

Note: 652.125 (Bond required when failure to make timely wage payment occurs) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 652 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Notes of Decisions

Where employer was charged with crim­i­nal viola­tion of Massachusetts pay­ment of wages statute for failing to pay discharged employees for their unused vaca­tion time, employer’s policy of paying discharged employees for unused vaca­tion time was not “employee welfare benefits plan” under sec­tion 3 (1) of Employee Retire­ment Income Security Act of 1974 (ERISA) and crim­i­nal ac­tion to enforce that policy is therefore not foreclosed by sec­tion 514 (a) of ERISA. Massachusetts v. Morash, 490 U.S. 107, 109 S. Ct. 1668, 104 L.Ed 98 (1989)

It is unnecessary to imply private right of ac­tion for employee against secured creditor in pos­ses­sion under ORS 652.310 (Definitions of employer and employee) to 652.405 (Disposition of wages collected by commissioner when payment cannot be made to person entitled thereto) when to do so would render pro­vi­sions of ORS 652.110 (Method of paying employees) to 652.250 (Public employee’s wages as affected by absence to engage in search or rescue operation) superfluous. Stout v. Citicorp Industrial Credit, Inc., 102 Or App 637, 796 P2d 373 (1990), Sup Ct review denied

1 Legislative Counsel Committee, CHAPTER 652—Hours; Wages; Wage Claims; Records, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors652.­html (2017) (last ac­cessed Mar. 30, 2018).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 652, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano652.­html (2017) (last ac­cessed Mar. 30, 2018).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.