Ensuring Temporary Disability Benefits Issue Timely in Oregon
Whether an insurer timely paid temporary disability benefits in Oregon is one of the most heavily litigated issues in workers’ compensation. Late-payments create exposure for a penalty up to 25 percent of the late-paid amount, as well as an assessed attorney fee. Ensuring temporary disability benefits issue timely can save significant costs on a claim.
The initial payment of temporary disability benefits must issue no later than the 14th day after the employer’s notice or knowledge of the claim and of the worker’s disability, if the attending physician or authorized nurse practitioner has authorized temporary disability compensation. ORS 656.262(4)(a).
Subsequent temporary disability payments must be made at least every 14 days and include all benefits due for the period ending no more than seven days before the payment date. OAR 436-060-0150(4)(b). Thus, even if the payments issue every 14 days, they may be untimely if the payments do not include temporary disability benefits ending no more than seven days before the payment date. To illustrate an untimely payment, consider this:
The insurer issues the initial payment of time loss on October 10, 2023 (within 14 days of the employer’s notice/knowledge and attending physician’s temporary disability authorization), and covers temporary disability benefits from September 15, 2023 through September 29, 2024. The subsequent payment issues on October 24, 2023 (i.e., at least 14 days after the initial payment) and includes benefits from September 30, 2024 through October 16, 2023. Under the rules, the time loss payment is one day late because it does not include benefits due for the period ending no more than seven days from October 23, 2023. In order to be timely, the October 24, 2023 payment should have included temporary disability benefits through October 17, 2023.
As always, there are exceptions and caveats to the rules; however, maintaining these principles will decrease litigation related to untimely paid temporary disability benefits. If you have any questions regarding payment of temporary disability, please do not hesitate to contact me at or (503) 412-3116.
Posted by: Courtney Kreutz.
