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Work session on workers' compensation wage replacement carried over as MLAC continues review
Summary
Senate Bill 705, which would increase temporary total disability wage replacement from 66 2/3 percent to a higher percentage for some workers, was carried over while stakeholders and the Monetary and Legislative Advisory Committee (MLAC) continue analysis; an 80 percent compromise was discussed.
Senate Bill 705, a measure to change workers' compensation temporary total disability wage replacement, was opened in work session March 25 but carried over to allow MLAC further review.
Staff described the original bill as proposing that a worker on temporary total disability receive 100% of their average weekly wage from the prior 52 weeks if that average was less than or equal to the state's average weekly wage. Committee members and stakeholders discussed a compromise dash 2 amendment that would replace the original text with a tiered structure: 80% of wages that are equal to or less than the average weekly wage, and 66 2/3% for wages above the average weekly wage up to 133% of the average weekly wage (with a floor of $50 a week when applicable). The amendment would apply to claims filed on or after Jan. 1, 2026.
A representative from Oregon AFSCME described MLAC meetings that were delayed and that MLAC planned further discussion; she said MLAC would meet Thursday at 10 a.m. to continue deliberations. Committee members emphasized the policy trade‑off between increasing wage replacement for injured workers and the fund's capacity to absorb higher benefit levels. One senator characterized the monthly outflow from judgments and settlements as sizable and said the committee must balance worker needs with fund solvency.
Chair Taylor carried the work session over to the following night; committee staff and stakeholders expect MLAC to continue considering an 80% proposal as a compromise. No vote occurred on March 25.
