Still on the subject of uncollected debt and fines, an Oregonian story this week details how the Oregon Labor Bureau failed to collect nearly $5 million in wage theft claims since 2015. Wage theft erupts when employers can’t or won’t pay up. Some employers move assets or change business names to dodge their obligations. Others move out of state, go bankrupt, or simply refuse to pay.
Oregon has struggled to hold employers accountable when they fail to pay workers. Of the nearly $12 million that the agency ordered employers to pay in back wages and penalties over the last eight years, more than 40% was never recovered.
As the state agency responsible for enforcing the state’s civil rights and wage-and-hour laws, the Bureau of Labor and Industries receives about 3,300 complaints a year – about 1,700 civil rights cases and 1,600 wage claims.
In the case of an insolvent business, the bureau taps into the Wage Security Fund, a state-funded pot of money used to pay workers up to $4,000 each, and then seeks reimbursement – often to no avail. About $3 million per biennium is available, funded by a state employment tax on employers.
State law requires agencies to send unpaid accounts to the Oregon Department of Revenue within 90 days. The Department reaches out to debtors to be sure they are aware of what’s owed. If immediate payment isn’t possible, officials will consider a payment plan. Failing that, the department can garnish wages or a bank account or place a lien on assets, depending on the size of the debt and the debtor’s ability to pay.
To increase the chances of payment, BOLI often will file a complaint against a business and its owner so they are jointly and individually liable. Doing so also prevents a company from closing its doors, renaming itself, and resuming the same or similar business.
In spite of these tools, the problem persists and is growing. |