2023 Oregon Revised Statutes › Volume : 16 - Trade Practices, Labor and Employment › Chapter 657 - Unemployment Insurance › Section 657.310 - Repayment or deduction of benefits paid due to misrepresentation by recipient; director discretion; penalty for fraud; time limits on collection; civil action by director; disposition of amounts collected; rules.

(1)(a) 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.
(b) For purposes of paragraph (a)(B) of this subsection, the director may deduct all or any part of the individual’s future weekly benefits.
(c) Except as provided in subsection (2)(b) of this section, benefits described in paragraph (a) of this subsection may be collected for any week or weeks within five years following the week in which the decision establishing the erroneous payment became final.
(d) Notice provided to an individual of the individual’s liability for recovery of benefits under this section must include a description of:
(A) The basis for the director’s decision that benefits have been overpaid; and
(B) The consequences of the overpayment, including the methods of recovery of the overpaid amount, with interest and penalties, and the possibility of waiver under ORS 657.317.
(2)(a) In addition to the liability described in subsection (1) of this section, an individual who has been disqualified for benefits under ORS 657.215 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.
(b) Notwithstanding subsection (1)(c) of this section, overpaid benefits that are subject to the penalty imposed under this subsection may be collected at any time.
(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) The director may bring a civil action against an individual to collect any amount subject to recovery and any penalty due under this section.
(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)(a)(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:
(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; 2021 c.388 §1]