Requiring bond of employer
(1) If upon investigation by the Commissioner of the Bureau of Labor and Industries, after taking assignments of any wage claims under ORS 652.330 (Powers and duties of commissioner in enforcing wage claims), it appears to the commissioner that the employer is representing to employees that the employer is able to pay wages for their services and that the employees are not being paid for their services, the commissioner may require the employer to give a bond in such sum as the commissioner deems reasonable and adequate in the circumstances, with sufficient surety, conditioned that the employer will for a definite future period not exceeding six months conduct business and pay employees in accordance with the laws of Oregon.
(2) If within 10 days after demand for such bond the employer fails to provide the same, the commissioner may commence a suit 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 and the employer’s compliance with ORS 652.310 (Definitions of employer and employee) to 652.414 (Procedure for payment from fund), 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. [Amended by 1975 c.488 §5; 1991 c.331 §95; 1997 c.631 §515; 1999 c.69 §2]
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