2025 Oregon Legislative Sessions Comes to an End
The Oregon legislature adjourned as few weeks ago. While the session had some rather contentious issues to deal with as usual, there were a few workers’ compensation issues that had support through MLAC and passed through the legislature.
HB 2800 (PEOs)
- Changes the term “worker leasing company” to “professional employer organization” to reflect the use of agreements under which PEOs and client employer allocate responsibilities for all/some of the client employer’s workers.
- Takes effect on 91st day following adjournment (September 26, 2025)
HB 2802 (Lump Sum Payments)
- Clarifies an employer must pay a lump sum PPD award exceeding $6,000 if requested by the worker and the worker has waived the right to request reconsideration or if the award of PPD has become final.
- Maintains automatic lump sum payments for PPD awards $6,000 or less;
- Clarifies an employer does not have to pay a lump sum PPD request if the employer timely requested reconsideration and the reconsideration proceeding is not completed;
- WCD is tentatively scheduled for rulemaking on September 10, 2025 at 1:30pm to address these changes.
- Takes effect on January 1, 2026
HB 2799 (Attorney Costs)
- Raises the soft cap for attorney fees that can be awarded by the WCB from $1,500 to $3,500;
- Indexes the soft cap to an annual increase based on the State Average Weekly Wage, rounded to the nearest hundred-dollar.
- OTLA proposed the bill and had asked for an expansion of the types of cases in which costs can be awarded; further discussion at MLAC and WCB will be needed to address this.
- Takes effect on January 1, 2026
SB 904 (Self-Insured School District Security Deposits)
- Includes school districts among the self-insured employers that may apply for exemption from the rules requiring such employers to demonstrate financial viability and provide security to the Director of the Department of Consumer and Business Services.
- WCD is tentatively scheduled for rulemaking on August 27, 2025 at 2:30pm to address these changes
- Takes effect on January 1, 2026
SB 5511 (DCBS Budget)
- Funds DCBS with a $828.4 million budget, a 5.7% increase from 2023-2025
- Importantly includes investments in the DCBS Modernization Program
If you have any questions on how these changes could impact your claims or you want to be involved with the upcoming rulemaking process on these changes, please feel free to contact me at (503) 595-2130 or .
Posted by Kevin Anderson.
