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Oregon workers' compensation insurance: Your guide to requirements and getting a policy
If you’re an Oregon employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
In Oregon, nearly all employers with one or more employees,whether full-time or part-time, must have workers’ compensation insurance. If your business only contracts with independent contractors, you’re not required to carry coverage. However, if you choose to do so, you must ensure those contractors legally qualify as such under Oregon law.
Active business partners involved in key decisions
Casual labor (under $1,091.84 in any 30-day period as of July 1, 2024)
Corporate officers with 10% or more stock ownership
Most members of LLCs
Out-of-state employees temporarily working in Oregon
To determine your obligation:
Are you considered an employer under Oregon law?
Is the worker entitled to workers’ compensation coverage—or exempt?
Workers’ compensation provides medical and financial support for employees injured or sickened due to job-related duties. Coverage specifics are governed by the Oregon Workers’ Compensation Division (WCD). Generally, it includes:
Wage replacement (a percentage of the employee’s average weekly wage)
Medical expenses (care, prescriptions, transportation, etc.)
Temporary or permanent disability benefits
Vocational rehabilitation to return the worker to employment
Death benefits for dependents and funeral costs
Oregon employers can purchase workers’ comp from any insurer authorized by the state. According to the WCD, over 300 insurers are approved to issue these policies.
Apply via an insurance agent
Work directly with some insurers (no agent required)
Access policies through business organizations or associations
If you’re denied by one or more insurers, you can apply through the Oregon Assigned Risk Insurance Plan, administered by the NCCI. After submitting a special application, NCCI assigns you to an authorized insurer.
Alternatively, employers may self-insure, taking on full financial responsibility. This option requires approval from Oregon’s Department of Consumer and Business Services.
If you fail to carry workers’ comp when required, Oregon’s WCD enforces the law through a series of escalating penalties.
WCD issues a noncompliance order, outlining the violation period and applicable fine.
For a first offense, the penalty is double the premium amount due (minimum of $1,000).
Continued noncompliance results in $250/day fines with no maximum cap.
After three or more violations, the WCD may seek a court injunction.
Ignoring the injunction can lead to contempt of court, fines, and possible jail time.
If you lack required coverage and an employee is injured:
A certified claims agent must handle the case
You are responsible for full claims costs and administrative fees
Total expenses can reach hundreds of thousands of dollars
You cannot discharge this debt via bankruptcy
Owners (including corporate officers or LLC members) may be personally liable
Employees may also sue the business, increasing your risk exposure
In the event of a work-related incident, employers and employees have key responsibilities:
Employees must:
Report the injury/illness ASAP
File a workers’ comp claim (within 1 year)
Choose their own healthcare provider
Employers must:
Provide Form 801 to the employee
Notify the insurer within 5 days of the incident
Submit Form 801, along with any concerns or notes
Ensure the insurer accepts or denies the claim within 60 days
The insurer must notify the WCD of the decision within 14 days
Employers may also request a hearing if they dispute the claim.
For reference, employees and employers can visit the WCD website to better understand their rights and obligations.
Maintaining a valid workers’ compensation policy protects both your team and your business. Employees can recover with peace of mind, knowing they’ll receive partial wage replacement and medical coverage. At the same time, employers avoid legal penalties, hefty fines, and lawsuits.
If your Oregon business needs help getting compliant, Beyond is here to walk you through the entire process.
