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Subcommittee backs bill letting public employers recoup recent wage overpayments
Summary
The subcommittee adopted amendments to Senate Bill 968 on June 4 to allow public employers to recover wage overpayments made in the prior 364 days, require written notice and an itemized explanation before deductions, and add a small LFO staffing appropriation; the measure was moved to the full committee with a due‑pass recommendation.
On June 4 the Joint Committee on Ways and Means Subcommittee on Transportation and Economic Development adopted the a‑7 amendment and voted to move Senate Bill 968 to the full Ways and Means Committee with a due‑pass recommendation.
LFO described the policy: SB 968 allows public employers to recover wage overpayments made to public employees if the overpayment occurred within the last 364 days. Employers must provide at least 10 calendar days’ written notice before initiating deductions. The notice must include an itemized explanation of the overpayment, the proposed deduction schedule, and a statement that any remaining balance may be withheld from the employee’s final paycheck upon separation. The bill also repeals ORS 292.063, which previously applied only to state agencies.
Fiscal and administrative details
- The Bureau of Labor and Industries, according to LFO, projects an additional 54 wage claims per year from the measure. - LFO estimated a fiscal impact of $114,461 general fund and one position (0.5 FTE). The dash‑a7 amendment adds $114,461 general fund appropriation to the Bureau of Labor and Industries’ budget for the 2025‑27 biennium; LFO recommended adoption of the amendment.
Committee discussion and vote
- Representative Carlos asked for clarification: “So just to be clear, a yes vote allows them to go back and take wages that were overpayment?” The chair answered in the affirmative: “Yes. Okay. And this just sets the stage or the the process.”
- The a‑7 amendment was adopted and the measure was approved by the subcommittee and moved to the full committee with a due‑pass recommendation; recorded votes included multiple ayes and several excused members.
What remains
- The bill establishes a process and a limited appropriation for the Bureau of Labor and Industries; implementation will require employer compliance with the notice and itemization requirements and may generate additional claims projected by BOLI.
Ending note
SB 968 was advanced to the Ways and Means full committee with the adopted amendment; the committee attached a small appropriation to BOLI’s budget to implement the new duties described in the bill.
