Oregon Employment Department outlines new repayment rules for strike-related overpayments

During a recent meeting of the Oregon House Committee on Labor and Workplace Standards, significant discussions centered around the implications of unemployment insurance (UI) benefits for workers involved in strikes. The committee addressed the need for workers to repay UI benefits received during strike periods, emphasizing the Oregon Employment Department's (OED) collection methods for overpaid benefits.

The OED clarified that voluntary repayment is preferred and can be arranged through one-time payments or repayment plans tailored to individual circumstances. However, if workers do not voluntarily repay, the department may resort to various collection methods, including garnishing wages, intercepting tax refunds, and referring cases to third-party collection agencies.

A key point raised was the categorization of overpayments. Typically, overpayments are classified into three categories: those not attributable to the claimant, those with some claimant involvement but not fraud, and those involving fraud. The current discussions suggest that overpayments related to back pay from strikes would allow for more aggressive collection methods than previously permitted.

The committee also examined the potential financial impact of strikes on the UI trust fund. Historical data was analyzed to estimate the effects of strike activity on the fund, with projections indicating a potential loss of approximately $2.6 million for tax-paying employers and $2.1 million for reimbursing employers over the 2025-2027 biennium. A more recent analysis suggested even higher potential losses, estimating around $5.3 million for tax-paying employers and $5.9 million for reimbursing employers, though these figures are not expected to significantly affect the trust fund's adequacy ratio or tax schedules.

The discussions highlighted the complexities of managing UI benefits during strike actions and the financial implications for both workers and employers. As the committee continues to navigate these issues, the focus remains on ensuring fair practices while maintaining the integrity of the UI trust fund.