Oregon Deductions From Pay laws & compensation compliance analysis

Oregon Deductions From Pay: What you need to know

Oregon law restricts an employer's right to make deductions from a worker's pay (OR Rev. Stat. Sec. 652.610). Employers may lawfully make deductions from employees' wages only if the deductions are:
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• Required by law;
• For the employee's benefit, authorized in writing by the employee, and recorded in the employer's books;
• For any other item voluntarily authorized by the employee provided that the employer is not the ultimate recipient of the money;
• Authorized by a collective bargaining agreement to which the employer is a party; or
• From the payment of wages upon the termination of employment if the deduction is for the repayment of a loan from the employer to the employee made for the benefit of the employee, for which the employee voluntarily signed a loan agreement, and the loan is recorded in the employer's records.
An employer may deduct the amount that it paid for an employee's share of insurance costs while the employee was on family leave from the employee's pay when he or she returns to work. No more than 10 percent of the employee's gross wages may be deducted from any one paycheck for this purpose (OR Admin. Rules Sec. 839-001-0250).
All deductions that an employer makes for the purpose of providing medical care are considered trust funds. They must be kept in a separate account and paid promptly to the medical care contractor. They may not legally be mingled with the employer's funds (OR Rev. Stat. Sec. 652.710).
An assignment of wages is an agreement between an employee and one of his or her creditors, under which the employee voluntarily gives the creditor ...

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