Oregon Workers Compensation

Oregon workers compensation insurance plays a key role in helping businesses handle work-related injuries and illnesses and supporting employees through recovery. To help stay compliant and have their employees’ claims managed with confidence, employers need to understand OR workers compensation laws, including coverage requirements, employee benefit details, and reporting obligations. Employers can find important information here.

Understanding workers compensation in Oregon

Richly saturated green hues, rugged peaks, and deep blue waters mingled with urban charm characterize the state of Oregon, where many employees call home. Employers near these beautiful vistas understand good coffee and well-crafted beer are staples to keep tourists and Oregon residents happy. Most employers also know being there for employees, should an accident happen, will help keep their workforce strong.

The employees who produce goods and services for others will need support if a workplace injury occurs. Travelers offers a means for employers to support employees through workers compensation insurance.

Who is required to carry workers compensation insurance in Oregon?

If an employer has more than one employee, they are required by law to obtain workers compensation coverage.

Oregon requirements to consider

The cost of not providing workers comp coverage in Oregon can be steep. Penalties can increase with each violation notification and the number of days in non-compliance.
Uninsured employers are responsible for paying all claims costs associated with employee work-related injuries, plus administration fees.

Who can receive workers compensation benefits in Oregon?

Injured employees are generally eligible to receive workers compensation benefits. Some individuals are automatically included in or excluded from workers compensation in Oregon.

Corporations:
- Officers are generally included in workers comp coverage.
- Officers who are directors of the corporation and who do not have substantial ownership but own at least 10% interest, are included in coverage, and may elect to be excluded from coverage.
- Officers who are directors of the corporation and who have substantial ownership interest in the corporation regardless of the work performed are excluded from coverage, and may elect to be included in coverage.
- Officers who are directors of the corporation actively licensed as a landscaping contracting business or construction contracting business, and who have a substantial ownership interest in the corporation are excluded from coverage.
  - If all officers are members of the same family and are parents, spouses, sisters, brothers, daughters or sons, daughters-in-law, sons-in-law, or grandchildren, all officers may elect to be excluded from coverage.
    - For all other corporations actively licensed as a landscaping contracting business or construction contracting business, the maximum number of officers that may elect to be excluded from coverage shall be whichever is the greater of: two officers; or one officer for each 10 corporate employees.
- If the corporation is involved in the commercial harvest of timber and all officers of the corporation are members of the same family and are parents, spouses, sisters, brothers, daughters or sons, daughters-in-law or sons-in law or grandchildren, all officers may elect to be excluded from coverage.
  - For all other corporations involving timber, the maximum number of officers that may elect to be excluded from coverage shall be whichever is the greater of: two officers; one officer for each 10 corporate employees.
Partnerships:
- Construction Partners:
  - Construction partners (including landscaping contractors) who do not have a substantial ownership interest in the partnership are included in coverage.
  - Partners who are actively licensed as a landscaping contracting business or construction contracting business who have a substantial ownership interest in the partnership are excluded from coverage and may elect to be included in coverage.
    - If all partners are members of the same family and are parents, spouses, sisters, brothers, daughters or sons, daughters-in-law, sons-in-law, or grandchildren, all partners may elect to be excluded from coverage.
      - For all other partnerships, the maximum number of partners that may elect to be excluded from coverage shall be whichever is the greater of: two partners; one partner for each 10 partnership employees.
- Non-Construction Partners: Non-construction partners are excluded from coverage and may elect to be included in coverage.
Sole Proprietorships: Sole proprietors are excluded from coverage and may elect to be included in coverage. Sole proprietors actively licensed as a landscaping contracting business or construction contracting business are included in coverage and may elect to be excluded from coverage.
Limited Liability Companies (LLCs):
- Construction LLC:
  - Members, including members who are managers of the LLC with more than one member, are included in coverage and may not elect to be excluded if they are engaged in work performed in direct connection with the construction, alteration, repair, improvement, moving or demolition of an improvement on real property or appurtenance thereto.
  - Members of companies that are actively licensed as a landscaping contracting business or construction contracting business who have a substantial ownership interest in the company are excluded from coverage.
    - If all members are members of the same family and are parents, spouses, sisters, brothers, daughters or sons, daughters-in-law or sons-in law or grandchildren, all members may elect to be excluded from coverage.
      - For all other LLCs, the maximum number of members that may elect to be excluded from coverage shall be whichever is the greater of: two members; one member for each 10 company employees.
- Non-Construction LLC: Members, including members who are managers of the LLC, are excluded from coverage and may elect to be included in coverage.

Overview of workers compensation requirements in Oregon

Understanding Oregon workers compensation is essential for employers. Being aware of state requirements helps employers comply with the law and support employees. This is an overview of the fundamentals of employer responsibilities and the benefits employees may receive under OR workers compensation law.

Oregon workers compensation employer responsibilities overview

Compensable injuries

Generally, injuries arising out of and in the course of employment, regardless of whose fault it is, have potential for workers compensation benefits. This includes occupational diseases and cumulative trauma injuries. The employee has the burden to show that the alleged work event was, at least, a material cause of the claimant’s need for treatment or disability. Expert medical evidence may be required.

Occupational diseases and cumulative trauma injuries are conditions that develop over time in the workplace.

The employee must show that the employment was, at least, the major (more than 50%) cause of the condition.
Claims must be supported by medical evidence linking the condition to work.

Posting notices

All employers in Oregon required to provide workers compensation coverage must display a “Notice of Compliance” poster in a central gathering area, such as a breakroom. Each poster includes workers compensation information to help workers, and employers provide current insurance information to health care providers at the time of injury to speed up the claims process.

Employers automatically receive a “Notice of Compliance” poster when they first get coverage or change coverage providers.
Once the posting notice is received, it remains valid if the policy remains active.
Additional copies of valid posters can be made and posted.
If the policyholder, employer name, or insurer changes, a new poster will automatically be sent.
A change in policy number only, which is common practice at annual renewal, does not require a new posting notice.

For more information on ordering the compliance poster, visit the website for the Oregon Workers’ Compensation Division.

Providing medical treatment

Employers must ensure that injured employees receive appropriate medical care for work-related injuries and illnesses.

Covered treatment may include doctor visits, hospital care, surgery, prescription medications, diagnostic testing, and ancillary care such as massage, chiropractic, and physical therapy. Injured employees are also eligible for reimbursement of travel-related expenses incurred while obtaining medical treatment as well as time paid for missed work due to medical appointments.
Employees have the right to choose their healthcare provider.
Employers cannot direct care but must inform injured employees of their rights.

Providing lost wages (indemnity)

Employers can be responsible for lost wages, including decrease in pay due to modified job responsibilities. The employee benefits section gives a more in-depth explanation of the types of wage benefits employers may be responsible for.

Prompt reporting and forms

Employers should encourage employees to promptly notify them of any accident or injury. Once aware of a work-related injury, the employer should make sure the injured employee understands they can seek medical treatment if needed. The employer should notify their insurer right away of any work accident or injury so that their insurer can timely report to the Workers’ Compensation Division.

Employers or their insurer may need to report claim information throughout the claim process, such as:

When notified of a work-related injury or illness, employers must provide a Form 801, "Report of Job Injury or Illness,” to the injured employee to initiate the claim. After the employee completes their section, the employer must complete their portion of the 801 form and send it to their workers compensation insurance carrier within 5 days.
Employers must provide the injured employee Form 3283, “A Guide for Workers Recently Hurt on the Job,” which explains their rights and what to expect during the claims process.

Prompt reporting is essential to ensure timely processing of the claim and delivery of benefits to the injured employee.

Record keeping

Employers should maintain thorough documentation, including details about what happened, when, where, and witnesses involved. Accurate record keeping and prompt reporting to their workers compensation insurer can play a key role in a timely and complete investigation and handling of the claim.

The employer should continue to maintain and provide necessary information to their insurer throughout the claim process as it is vital for efficient claim handling and compliance with the workers compensation law.

Penalties

Employers and insurers are subject to civil penalties for non-compliance with workers compensation laws.

Oregon workers compensation employee benefits overview

Calculating Average Weekly Wage (AWW) in OR

Most times, an employee’s Average Weekly Wage (AWW) is calculated based on the employee’s earnings from the 52 weeks prior to the injury and is subject to statutory maximum rates.

Employers must provide accurate wage information to their insurer as soon as possible to help determine the correct benefit amount.
The employer’s failure to timely provide wage records to their insurer can result in penalties.

Temporary Total Disability (TTD) benefits

Temporary Total Disability (TTD) benefits apply when an injured employee cannot work during recovery.

Oregon requires a 3-day waiting period before benefits start, but if the disability exceeds 14 consecutive days or includes an overnight hospital stay, benefits are retroactive to day one.
Benefits equal 66 2/3% of the injured employee’s Average Weekly Wage (AWW), which is generally based upon the 52 weeks prior to the injury, subject to state maximum limits.

Temporary Partial Disability (TPD) benefits

Temporary Partial Disability (TPD) benefits are provided when an injured employee returns to work with reduced hours or duties, leading to lower earnings. TPD is due to the employee when their post-injury wages are less than their Average Weekly Wage (AWW).

The benefit amount is 66 2/3% of the difference between their pre-injury AWW and post-injury earnings, subject to state maximum limits.

Permanent Partial Disability (PPD) benefits

Permanent Partial Disability (PPD) benefits are awarded when an injured employee has a permanent impairment.

Benefits are based on the degree of impairment and the injured employee’s Average Weekly Wage (AWW) at the time of injury, subject to state limits. There are two types:
- Impairment-Only Benefits are awarded when the injured employee returns to or is released for regular work, calculated using the impairment rating and the State Average Weekly Wage (SAWW).
- Work Disability (WD) Benefits may apply when the injured employee cannot return to their regular job due to a permanent work restriction. Benefits are based on factors listed in the statute including the impairment rating, age, education, and difference between pre-injury capacity and post-injury capacity. These benefits are calculated at 150 times the AWW and subject to state maximum limit.
A medical evaluation determines medical stationary date and status and impairment percentage per regulation. The employee’s attending physician is the sole provider who can determine PPD and WD amounts at the time of claim closure. After the PPD is determined and a Notice of Closure has issued by the insurer, employee or employer can challenge the PPD or other parts of the Notice of Closure and the employee may be evaluated by an independent medical arbiter. NOTE: The medical arbiter can have no impact on WD; only PPD.

Permanent Total Disability (PTD) benefits

Permanent Total Disability (PTD) benefits are provided for injured employees permanently unable to work due to the work-related condition.

These lifetime benefits continue for the duration of the disability, with no capped number of weeks.
PTD benefits are calculated at 66 2/3% of the injured employee’s AWW, subject to state maximum limits.

Fatality benefits

If a work-related injury or illness causes an employee’s death, Oregon provides monthly benefits to eligible dependents.

The surviving spouse or domestic partner receives 66 2/3% of the State Average Weekly Wage (SAWW), multiplied by 4.35.
Each eligible child under the age of 19, or up to age 26 (if enrolled in secondary education, obtaining a GED, or attending a program of higher education), is eligible to receive 25% of the SAWW, also multiplied by 4.35.
Total monthly benefits paid to all eligible children are capped at 4.35 times 133 1/3% of the SAWW, but payments to the surviving spouse or to children without a surviving parent do not count toward this limit.
Funeral expenses are covered up to 20 times the SAWW.

Vocational rehabilitation

Insurance carriers provide vocational assistance to help injured workers return to suitable employment after a work injury. It is the employer/insurer’s responsibility to refer the employee for vocational rehabilitation eligibility determination within 5 days of having knowledge that the employee likely is eligible for vocational assistance or when the employee is medically stationary and has not returned to, or been released to, regular work or has not returned to otherwise suitable employment.

Medical benefits

Injured employees are entitled to all necessary medical services related to their accepted workers compensation claim, including doctor visits, hospital care, medications, and rehabilitation services.

Injured employees may be reimbursed for travel and other related expenses associated with their treatment.
Employees are not responsible for any copayments or deductibles.

Legislative updates

Regulations, laws and potential changes that can shift your course

As the nation’s largest writer of workers compensation insurance, Travelers is committed to understanding new and evolving legislation, regulations and trends at the state level. Our employees serve on regional and national associations, boards and committees to advocate on behalf of our customers and the industry. We educate stakeholders on the impact legislation can have on businesses. By taking an active role in the legislative process, we participate in the important dialog around worker safety and advocate for best practices industry-wide so all can benefit from our workers compensation expertise.

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Why choose Travelers

Care for the employee, confidence for the employer

Employees are at the heart of every business. That's why Travelers is here to help employers keep them safe and support them when accidents happen. Our experienced teams guide both employers and their injured employees through recovery, from getting the right care to returning to work as soon as medically appropriate. In fact, 70% of injured employees return to work within 30 days.

Travelers approach

Information for Oregon businesses

Resources

Travelers workers compensation hub

Travelers workers compensation claim process

TravPay®/Pay-as-you-go billing

Premium Audit

Risk Management Information Services (RMIS)

Travelers Risk Control

Government links

Oregon Workers’ Compensation Division (WCD)

Oregon WCD employer information

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Sources
https://wcd.oregon.gov/Pages/index.aspx

Oregon Workers Compensation

Who is required to carry workers compensation insurance in Oregon?

Oregon requirements to consider

Who can receive workers compensation benefits in Oregon?

Construction

Technology & life sciences

Manufacturing

Compensable injuries

Posting notices

Providing medical treatment

Providing lost wages (indemnity)

Prompt reporting and forms

Record keeping

Penalties

Calculating Average Weekly Wage (AWW) in OR

Temporary Total Disability (TTD) benefits

Temporary Partial Disability (TPD) benefits

Permanent Partial Disability (PPD) benefits

Permanent Total Disability (PTD) benefits

Fatality benefits

Vocational rehabilitation

Medical benefits

Workplace Safety Resources

How to Unlock the Strategic Value of Benchmarking in Workers Compensation

Workplace Safety Resources

How Presumption Laws Are Changing Workers Compensation

Workplace Safety Resources

How Does Workers Compensation Apply to Employees Versus Contractors

Workplace Safety Resources

Workers Compensation Coverage for Business Leaders

Resources

Government links

Employee Wellness Resources

The Opioid Crisis and Workplace Injury

Manufacturing Resources

4 Factors to Consider When Choosing a Workers Compensation Carrier

Workplace Safety Resources

How New Employee Onboarding Can Promote Safety