2015 ORS 657.310¹
Recovery or deduction of benefits paid because of misrepresentation by recipient
  • penalty

(1) If the Director of the Employment Department decides that an individual received any benefits under this chapter to which the individual is not entitled because the individual, regardless of the individual’s knowledge or intent, made or caused to be made a false statement or misrepresentation of a material fact, or failed to disclose a material fact, the individual is liable:

(a) To repay the amount of the benefits to the director for the Unemployment Compensation Trust Fund; or

(b) To have the amount of the benefits deducted from any future benefits otherwise payable to the individual under this chapter.

(2) In addition to the liability described in subsection (1) of this section, an individual who has been disqualified for benefits under ORS 657.215 (Disqualification for misrepresentation) is liable for a penalty imposed at a rate prescribed by the director of at least 15, but not greater than 30, percent of the amount of benefits the individual received to which the individual was not entitled.

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

(a) That the individual, by reason of the false statement, misrepresentation or nondisclosure, is liable to repay the amount to the Unemployment Compensation Trust Fund;

(b) The nature of the false statement, misrepresentation or nondisclosure; and

(c) The week or weeks for which the benefits were paid.

(4)(a) Any amount subject to recovery and any penalty due under this section may be collected by the director in a civil action against the individual brought in the name of the director.

(b) Judgment rendered shall bear interest at the rate provided in subsection (5) of this section.

(5) 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 individual, at the rate of one percent per month or fraction of a month, beginning on the first day of the month following 60 days after the finality of the administrative decision establishing the overpayment.

(6)(a) Deductions from unemployment insurance benefits pursuant to subsection (1)(b) 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.

(7)(a) The following amounts collected under this section shall be paid into the Unemployment Compensation Trust Fund:

(A) Amounts in repayment of benefits; and

(B) The portion of penalties imposed under subsection (2) of this section that is 15 percent of the amount of benefits received.

(b) The following amounts collected under this section shall be paid into the Employment Department Special Fraud Control Fund in accordance with the provisions of ORS 657.400 (Employment Department Special Fraud Control Fund):

(A) Interest other than interest described in paragraph (c) of this subsection; and

(B) The portion of penalties imposed under subsection (2) of this section that remains after subtraction of the portion of penalties described in paragraph (a)(B) of this subsection.

(c) Interest payable on any portion of benefits that were funded by the federal government shall be paid to the United States Department of Labor.

(8) The director shall adopt rules establishing standards and procedures for the repayment of benefits and payment of penalties and interest under this section. [Amended by 1963 c.14 §1; 1997 c.372 §1; 2005 c.182 §3; 2007 c.87 §2; 2013 c.703 §1]

Notes of Decisions

Where weekly claim forms provided by Employ­ment Division asked claimant to report income-producing work done during reporting period, claimant did not make ma­te­ri­al misrepresenta­tion in not reporting assisting wife on farm, because he received no remunera­tion. Shaffer v. Employ­ment Division, 33 Or App 537, 577 P2d 85 (1978)

There was substantial evidence to support finding that peti­tioner was not unemployed during weeks in ques­tion and, under this sec­tion, he was re­quired to repay benefits received even though he claimed compensa­tion received was for his son's benefit. Cook v. Employ­ment Div., 47 Or App 437, 614 P2d 1193 (1980), Sup Ct review denied

Restitu­tion is crim­i­nal sanc­tion and not intended to be equivalent of civil award and, although defendant satisfied restitu­tion ordered as part of sen­tence on con­vic­­tion for theft involving unlawful obtain­ment of unemploy­ment benefits, that determina­tion did not collaterally estop plaintiff, administrator of Employ­ment Division, from bringing civil ac­tion for recovery of unlawfully obtained benefits because issue resolved in crim­i­nal case was not same as issue to be resolved in civil case. Thorne v. Gay, 92 Or App 251, 758 P2d 380 (1988)

Decision re­gard­ing liability for overpay­ment "has become final" for purposes of allowing Employ­ment Depart­ment to seek repay­ment notwithstanding that ruling re­gard­ing existence of misrepresenta­tion is on ap­peal. Employ­ment Dept. v. Clark, 187 Or App 431, 67 P3d 991 (2003)

Chapter 657

Notes of Decisions

An individual who performs services for remunera­tion is an employee, and per­son or organiza­tion for whom services are performed is an employer under terms of Employ­ment Division Law even if remunera­tion is paid indirectly rather than directly unless employer shows that some statutory exclusion applies. Lectro Lift, Inc. v. Morgan, 14 Or App 316, 513 P2d 526 (1973)

Mere act of incorporating as professional corpora­tion does not, by itself, create employer-employee rela­tionship for purposes of this chapter. Peterson v. Employ­ment Division, 82 Or App 371, 728 P2d 95 (1986)

Determina­tion of whether claimant is qualified for benefits is made by reference to ORS 657.150 (Amount of benefits) and 657.155 (Benefit eligibility conditions), which require determina­tion of amount of work that claimant performed in "employ­ment" as defined in ORS chapter 657, which, in turn means that exclusions from "employ­ment" set out in ORS 657.040 (Employment) through 657.094 (Employment) must be considered. May Trucking Co. v. Employ­ment Dept., 251 Or App 555, 284 P3d 553 (2012)

Atty. Gen. Opinions

Determining employer of musicians' group, (1972) Vol 35, p 1306


1 Legislative Counsel Committee, CHAPTER 657—Unemployment Insurance, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors657.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 657, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano657.­html (2015) (last ac­cessed Jul. 16, 2016).
 
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.