Quick Hits: Oregon Assessment Rates

Eugene, OR (WorkersCompensation.com) -- Need a handy guide to assessment rates in Oregon? Look no further.

Method

Each pay period, an employer must retain from the moneys earned by each employee an amount equal to one-half (1/2) the assessment rate multiplied by the number of hours or parts of an hour the employee worked in that pay period.

If actual hours worked are not tracked, an employer may either calculate the assessments using a flat rate, use contract information stating the number of hours an employee works, or use another reasonable method for calculating hours worked. If the flat rate method is used, the calculation must be based on 40 hours per week for employees paid weekly or biweekly, or 173.33 hours per month for employees paid monthly or semi-monthly.

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If the amount to be retained from an employee under this section includes a fraction of a cent, the employer must round up or down as follows:

(A) For amounts greater than or equal to one-half (1/2) of a cent, the employer must round up to the nearest whole cent.
(B) For amounts less than one-half (1/2) of a cent, the employer must round down to the nearest whole cent.

Workers' Comp 101: In Oregon, the Workers' Benefit Fund pays for special benefits designed to promote full employment and compensation to injured workers. Assessments collected for the Fund are computed yearly to meet its needs. Development of the assessment rate takes into consideration estimates of annual fund expenditures and revenues, annual hours worked per employee, the number of employees covered by workers' compensation insurance, and the Fund balance requirements. See, e.g., Matter of Compensation of Mulrio, 380 P.3d 270 (Or. 2016).

Determining the Rate

The assessment owed by an employer must be calculated using the method above and based on a rate of 2.0 cents per hour.

Factors considered by the director in developing the rate include, but are not limited to:

+ The estimated annual fund expenditures and revenues;
+ The fund balance requirements;
+ The estimated annual hours worked per employee;
+ The estimated number of employees covered by workers’ compensation insurance; and
+ Other records relating to fund expenditures and revenues.

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