The Oregon Employment Department is proposing changes to its Oregon Administrative Rules. They have filed a Notice of Proposed Rulemaking with the Secretary of State to amend OARs 471-030-0017 and 471-030-0053, and promulgate 471-030-0320. They say that these rule changes are necessary to extend the provisions of SB 172 from the 2021 Legislative Session.

SB 172 had an operative date of June 23, 2021. It allowed recipients to deduct all or part of unemployment insurance benefit overpayments against future weekly benefits within five years following final decision for overpayments that were the claimant's fault, but not because of willful misrepresentation by the claimant.

471-030-0017 defines when wages are reportable to the Oregon Employment Department for unemployment insurance. This proposed rule will change reporting requirements for individuals receiving back pay while claiming unemployment insurance benefits. Before SB 172, a worker could not report wages from previous weeks. SB 172 allows a claimant to report retroactive pay when it is paid to them, unless it is awarded after a shutdown due to a lapse in federal funding. In that case, the payment must be allocated equally to the weeks of the shutdown.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

The Employment Department also proposing a new administrative rule, 471-030-0320. This rule addresses the percentage of future weekly benefits that may be offset according to Oregon Revised Statute 657.215, 657.310, and 657.315. It clarifies that when a decision is issued under ORS 657.306, the five-year time limit called for in SB 172 begins immediately following the week that the decision establishing an overpayment became final. The percentage of future weekly benefits offset will be determined based on whether the overpayment recovery would go against "equity and good conscience" as defined by the Internal Revenue Service.

Lastly, they are proposing AOR 471-030-0053 be permanently amended to make it consistent with the amended ORS 657.317. Currently, a waiver is defined as a temporary, renewable hardship deferral. Under SB 172, a waiver removes all responsibility for repayment for eligible individuals.

These proposed changes may have a fiscal and economic impact to employers, including reimbursing employers and those who pay into the Oregon Unemployment Insurance Trust Fund. This may include small businesses, state agencies, and units of local government.


--Ritch Hanneman

Post Date: 2022-10-05 09:41:43

Last Update: 2022-10-05 10:54:29