False statements or failure to report material fact; erroneous payments; recovery or deduction of benefits paid because of misrepresentation or nondisclosure; penalties; rules.

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(2) The Director of the Employment Department may assess a civil penalty in an amount not to exceed $1,000 against an employer for each occurrence that violates subsection (1) of this section.

(3) If the director determines that a covered individual willfully made a false statement or willfully failed to report a material fact in order to obtain benefits under this chapter, the covered individual is:

(a) Disqualified from claiming benefits for one year; and

(b) Liable for a penalty imposed at a rate prescribed by the director of at least 15 percent, but not greater than 30 percent, of the amount of benefits the individual received to which the individual was not entitled.

(4) If the director determines that a covered individual has received benefits to which the individual was not entitled, the director may:

(a) Seek repayment of benefits from the covered individual in a manner prescribed by the director by rule; and

(b) Have the amount of the benefits deducted from any future benefits otherwise payable to the individual under ORS 657B.100.

(5) If benefits are paid because of an error that is not due to provision of a false statement, nondisclosure of a material fact or misrepresentation by a covered individual, the director may waive, in whole or in part, the amount of any such payments for which recovery under subsection (4) of this section would be against equity, good conscience or administrative efficiency.

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

(a) That the covered individual, by reason of false statement, nondisclosure or misrepresentation, is liable to repay the amount to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430;

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

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

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

(7) The director shall adopt rules establishing standards and procedures for the repayment of benefits and payment of penalties and interest under this section.

(8) An employer or covered individual may appeal a determination made under this section as provided in ORS 657B.410. [2019 c.700 §15]

Note: 657B.120 becomes operative September 3, 2023. See section 63, chapter 700, Oregon Laws 2019, as amended by section 1, chapter 30, Oregon Laws 2021, and section 6a, chapter 639, Oregon Laws 2021.


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