(1) An employer may not willfully make or cause to be made false statements or willfully fail to report a material fact regarding the claim of an eligible employee or regarding an employee’s eligibility for family and medical leave insurance benefits under this chapter.

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(2) The Director of the Employment Department may assess a civil penalty in an amount not to exceed $1,000 against an employer for each occurrence that violates subsection (1) of this section.

(3) If the director determines that a covered individual willfully made a false statement or willfully failed to report a material fact in order to obtain benefits under this chapter, the covered individual is:

(a) Disqualified from claiming benefits for one year; and

(b) Liable for a penalty imposed at a rate prescribed by the director of at least 15 percent, but not greater than 30 percent, of the amount of benefits the covered individual received to which the covered individual was not entitled.

(4)(a) If the director determines that a covered individual has received benefits to which the covered individual was not entitled, the director may:

(A) Seek repayment of benefits from the covered individual in a manner prescribed by the director by rule; or

(B) Have the amount of the benefits deducted from any future benefits otherwise payable to the covered individual under ORS § 657B.100.

(b) For purposes of paragraph (a)(B) of this subsection, the director may deduct all or any part of the covered individual’s future weekly benefits.

(c) Except as provided in paragraph (d) of this subsection, benefits described in paragraph (a) of this subsection may be collected for any week or weeks within five years following the week in which the decision establishing the erroneous payment became final.

(d) Notwithstanding paragraph (c) of this subsection, overpaid benefits subject to the penalty imposed under subsection (3)(b) of this section may be collected at any time.

(e) Notice provided to a covered individual of the covered individual’s liability for recovery of benefits under this section must include a description of:

(A) The basis for the director’s decision that benefits have been overpaid; and

(B) The consequences of the overpayment, including the methods of recovery of the overpaid amount, with interest and penalties, and the possibility of waiver under ORS § 657B.336.

(5) If benefits are paid because of an error that is not due to provision of a false statement, nondisclosure of a material fact or misrepresentation by a covered individual, the director may waive, in whole or in part, the amount of any such payments for which recovery under subsection (4) of this section would be against equity, good conscience or administrative efficiency.

(6) A decision of the director under this section does not authorize the recovery of the amount of any benefits paid to a covered individual until the decision is final and the decision specifies:

(a) That the covered individual, by reason of false statement, nondisclosure or misrepresentation, is liable to repay the amount to the Paid Family and Medical Leave Insurance Fund established under ORS § 657B.430;

(b) The nature of the false statement, nondisclosure or misrepresentation;

(c) The week or weeks for which the benefits were paid; and

(d) That any amount subject to recovery and any penalty due under this section may be collected by the director in a civil action against the employer or covered individual brought in the name of the director.

(7)(a) The director may bring a civil action against a covered individual to collect any amount subject to recovery and any penalty due under this section.

(b) Any judgment rendered shall bear interest at the rate provided in subsection (8) of this section.

(8) Interest on any amount liable to be repaid under this section shall be paid and collected at the same time repayment of benefits is made by the covered individual, at the rate of one percent per month. In computing the interest, a fraction of a month shall be counted as a full month.

(9)(a) Deductions from paid family and medical leave insurance benefits pursuant to subsection (4) of this section shall be applied solely to the amount of the benefits liable to be repaid under this section.

(b) All other payments shall be applied first to court costs, then to penalties, then to interest, then to the amount liable to be repaid.

(10) The following amounts collected under this section shall be paid into the Paid Family and Medical Leave Insurance Fund established under ORS § 657B.430:

(a) Amounts in repayment of benefits;

(b) Amounts collected as interest under subsection (8) of this section; and

(c) The penalties imposed under subsection (3)(b) of this section.

(11) The director shall adopt rules establishing standards and procedures for the repayment of benefits and payment of penalties and interest under this section.

(12) An employer or covered individual may appeal a determination made under this section as provided in ORS § 657B.410. [Formerly 657B.120]

Section 13 (1), chapter 120, Oregon Laws 2023, provides:

(1) Sections 2 to 5, chapter 120, Oregon Laws 2023 [657B.334, 657B.335, 657B.336 and 657B.337], and the amendments to ORS § 657B.120 [renumbered 657B.332] by section 9, chapter 120, Oregon Laws 2023, apply to benefits paid on or after September 3, 2023. [2023 c.120 § 13(1); 2023 c.292 § 16b(1)]