70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2265
Minority Report
B-Engrossed
House Bill 2793
Ordered by the Senate May 13
Including House Amendments dated March 19 and Senate Minority
Report Amendments dated May 13
Sponsored by nonconcurring members of the Senate Committee on
Business and Consumer Affairs: Senators BEYER, METSGER
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Allows reduced minimum wage rate for employees under 18
years of age for first 60 calendar days of employment.
Establishes minimum wage for certain tipped employees. Decreases
minimum wage for certain tipped employees hired on or after
January 1, 2000. Imposes civil penalty for violation of
provisions related to tipped employees. - }
{ + Allows liquidated damages and civil penalties to be
assessed against employer who violates certain wage laws. + }
A BILL FOR AN ACT
Relating to minimum wage; creating new provisions; and amending
ORS 653.055 and 653.256.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 653.055 is amended to read:
653.055. (1) Any employer who pays an employee less than the
wages to which the employee is entitled under ORS 653.010 to
653.261 is liable to the employee affected:
(a) For the full amount of the wages, less any amount actually
paid to the employee by the employer; { - and - }
(b) For { - civil penalties - } { + penalty wages + }
provided in ORS 652.150 { - . - } { + ;
(c) For an additional amount as liquidated damages equal to
three times the amount referred to in paragraph (a) of this
subsection or $200, whichever is greater; and
(d) For 50 percent of civil penalties collected by the
Commissioner of the Bureau of Labor and Industries under ORS
653.256 (2). If the commissioner assesses civil penalties on the
basis of violations relating to more than one employee, each
employee shall receive a pro rata share, based on the amount of
the employee's unpaid wages, of the 50 percent of the civil
penalties collected. + }
(2) Any agreement between an employee and an employer to work
at less than the wage rate required by ORS 653.010 to 653.261 is
no defense to an action under subsection (1) of this section.
(3) The commissioner { - of the Bureau of Labor and
Industries - } has the same powers and duties in connection with
a wage claim based on ORS 653.010 to 653.261 as the commissioner
has under ORS 652.310 to 652.445 and in addition the commissioner
may, without the necessity of assignments of wage claims from
employees, initiate { - suits - } { + civil actions + }
against employers to enjoin future failures to pay required
minimum wages or overtime pay and to require the payment of
minimum wages and overtime pay due employees but not paid as of
the time of the filing of { - suit - } { + action + }. The
commissioner may join in a single { + administrative + }
proceeding and in one { - cause of suit - } { + action + }
any number of wage claims against the same employer. If the
commissioner does not prevail in such action, the commissioner
shall pay all costs and disbursements from the Bureau of Labor
and Industries Account.
(4) The court may award reasonable attorney fees to the
prevailing party in any action brought by an employee under this
section.
SECTION 2. ORS 653.256 is amended to read:
653.256. (1) In addition to any other penalty provided by law,
the Commissioner of the Bureau of Labor and Industries may assess
a civil penalty not to exceed $1,000 against any person who
willfully violates ORS 653.030, 653.045, 653.050, 653.060 or
653.261 or any rule adopted pursuant thereto. { - However, no
civil penalty may be assessed for violations of rules pertaining
to the payment of overtime wages. - }
{ + (2) In addition to any other penalty provided by law, the
commissioner may assess a civil penalty not to exceed $1,000
against an employer who willfully fails to pay wages required by
ORS 653.025. The commissioner may assess the civil penalty for
each day an employee is not paid the minimum wage. In determining
the amount of the civil penalty to be assessed, the commissioner
shall consider the following:
(a) The willfulness of the failure to pay the wages;
(b) The amount of unpaid wages;
(c) The duration of the violation;
(d) The employer's history of taking necessary measures to
prevent or correct a violation of ORS 653.025;
(e) The employer's cooperation during an investigation and in
paying minimum wages due after a violation of ORS 653.025 is
revealed;
(f) The size of the employer's workforce;
(g) The amount of gross wages paid to the employer's workforce
in Oregon during each calendar quarter when a violation of ORS
653.025 occurs; and
(h) The financial condition of the employer when the
commissioner proposes to assess a civil penalty. + }
{ - (2) - } { + (3) + } Civil penalties authorized by this
section shall be imposed in the manner provided in ORS 183.090.
{ - (3) - } { + (4) + } { + Except as provided in
subsection (5) of this section, + } all sums collected as
{ + civil + } penalties { - pursuant to - } { + under + }
this section shall be { - first applied toward reimbursement of
costs incurred in determining the violations, conducting hearings
under this section and addressing and collecting such penalties.
The remainder, if any, of the sums collected as penalties
pursuant to this section shall be paid over by the commissioner
to the Division of State Lands for the benefit of the Common
School Fund of this state. The division shall issue a receipt for
the money to the commissioner - } { + credited to the Bureau of
Labor and Industries Account and shall be used for the
administration of ORS 653.010 to 653.261 + }.
{ + (5) Fifty percent of all sums collected as civil
penalties under subsection (2) of this section shall be paid to
the employee to whom the employer failed to pay the minimum wage.
If the commissioner assesses civil penalties on the basis of
violations relating to more than one employee, each employee
shall receive a pro rata share, based on the amount of the
employee's unpaid wages, of the 50 percent of the civil penalties
collected. + }
SECTION 3. { + Section 4 of this 1999 Act is added to and made
a part of ORS 653.010 to 653.261. + }
SECTION 4. { + (1) An employee claiming to be aggrieved by a
violation of ORS 653.025 may file a civil action in circuit court
for a penalty of up to $1,000 in addition to any other remedy
available under ORS 653.055 (1)(a) to (c). The court may assess a
penalty not to exceed $1,000 against an employer who willfully
fails to pay wages required by ORS 653.025. The court may assess
the penalty for each day the employee is not paid the minimum
wage. In determining the amount of the civil penalty to be
assessed, the court shall consider the following:
(a) The willfulness of the failure to pay the wages;
(b) The amount of unpaid wages;
(c) The duration of the violation;
(d) The employer's history of taking necessary measures to
prevent or correct a violation of ORS 653.025;
(e) The employer's cooperation during an investigation and in
paying minimum wages due after a violation of ORS 653.025 is
revealed;
(f) The size of the employer's workforce;
(g) The amount of gross wages paid to the employer's workforce
in Oregon during each calendar quarter when a violation of ORS
653.025 occurs; and
(h) The financial condition of the employer when the employee
files the civil action.
(2) Upon the entry of a verdict including an award of penalties
under subsection (1) of this section, the Bureau of Labor and
Industries shall become a judgment creditor as to the penalties
portion of the award to which the Bureau of Labor and Industries
Account is entitled under paragraph (b) of this subsection and
the penalties portion of the award shall be allocated as follows:
(a) Fifty percent shall be paid to the prevailing party. If the
court awards penalties on the basis of violations relating to
more than one employee, each employee shall receive a pro rata
share, based on the amount of the employee's unpaid wages, of the
50 percent of the penalties awarded.
(b) Fifty percent shall be paid to the Bureau of Labor and
Industries Account and shall be used by the Bureau of Labor and
Industries for the administration of ORS 653.010 to 653.261.
(3) This section shall not be construed to limit or alter in
any way the authority or power of the Commissioner of the Bureau
of Labor and Industries or to limit or alter in any way any of
the rights of an individual complainant or wage claimant until
and unless the complainant or wage claimant starts a civil
action. The filing of a civil action in circuit court under
subsection (1) of this section shall constitute both an election
of remedies as to the rights of that individual with respect to
those matters alleged in the complaint or wage claim filed with
the commissioner and a waiver with respect to the right to file a
wage claim with the commissioner under ORS 652.330.
(4) The provisions of ORS 18.535, 18.537 and 18.540 do not
apply to a civil action brought under this section. + }
SECTION 5. { + The provisions of this 1999 Act apply only to
minimum wages and overtime pay earned on or after the effective
date of this 1999 Act. + }
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