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SB968 • 2025

Provides conditions and procedures under which a public employer may deduct amounts of erroneous overpayments from a public employee's wages.

Provides conditions and procedures under which a public employer may deduct amounts of erroneous overpayments from a public employee's wages.

Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Senator Taylor, Senator Jama,, Manning Jr,, Meek,, Neron Misslin,, Woods
Last action
2025-08-08
Official status
Chapter Number Assigned
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Provides conditions and procedures under which a public employer may deduct amounts of erroneous overpayments from a public employee's wages.

Digest: The Act would make new laws for deductions from public employees' wages to recoup amounts that were paid in error.

What This Bill Does

  • Digest: The Act would make new laws for deductions from public employees' wages to recoup amounts that were paid in error.
  • (Flesch Readability Score: 63.8).
  • Provides conditions and procedures under which a public employer may deduct amounts of erroneous overpayments from a public employee's wages.
  • Relating to: Relating to deductions from employee wages.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-08-08 Senate

    Chapter 602, 2025 Laws.

  2. 2025-08-08 Senate

    Effective date, January 1, 2026.

  3. 2025-07-24 Senate

    Governor signed.

  4. 2025-06-26 House

    Speaker signed.

  5. 2025-06-25 Senate

    President signed.

  6. 2025-06-24 House

    Third reading. Carried by Grayber. Passed. Ayes, 34; Nays, 14--Boice, Boshart Davis, Drazan, Edwards, Elmer, Helfrich, Levy B, Lewis, McIntire, Osborne, Reschke, Scharf, Skarlatos, Wright; Excused, 6--Cate, Diehl, Harbick, Nguyen H, Wallan, Yunker; Excused for Business of the House, 6--Chotzen, Evans, Helm, Owens, Smith G, Walters.

  7. 2025-06-23 House

    Rules suspended. Carried over to June 24, 2025 Calendar.

  8. 2025-06-20 House

    Rules suspended. Carried over to June 23, 2025 Calendar.

  9. 2025-06-19 House

    Second reading.

  10. 2025-06-18 Senate

    Third reading. Carried by Taylor. Passed. Ayes, 21; Nays, 8--Girod, Linthicum, Nash, Robinson, Smith DB, Starr, Thatcher, Weber; Excused, 1--Gorsek.

  11. 2025-06-18 Senate

    Vote explanation(s) filed by Robinson.

  12. 2025-06-18 House

    First reading. Referred to Speaker's desk.

  13. 2025-06-18 House

    Referred to Ways and Means.

  14. 2025-06-18 House

    Recommendation: Do pass.

  15. 2025-06-17 Senate

    Second reading.

  16. 2025-06-16 Senate

    Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

  17. 2025-06-13 Senate

    Work Session held.

  18. 2025-06-04 Senate

    Work Session held.

  19. 2025-06-04 Senate

    Returned to Full Committee.

  20. 2025-05-29 Senate

    Assigned to Subcommittee On Transportation and Economic Development.

  21. 2025-04-17 Senate

    Recommendation: Do pass with amendments and be referred to Ways and Means. (Printed A-Eng.)

  22. 2025-04-17 Senate

    Referred to Ways and Means by order of the President.

  23. 2025-04-08 Senate

    Work Session held.

  24. 2025-03-25 Senate

    Work Session held.

  25. 2025-03-13 Senate

    Public Hearing held.

  26. 2025-01-30 Senate

    Introduction and first reading. Referred to President's desk.

  27. 2025-01-30 Senate

    Referred to Labor and Business.

Official Summary Text

Digest: The Act would make new laws for deductions from public employees' wages to recoup amounts that were paid in error. (Flesch Readability Score: 63.8).
Provides conditions and procedures under which a public employer may deduct amounts of erroneous overpayments from a public employee's wages.
Relating to: Relating to deductions from employee wages.
Current location: Chapter Number Assigned

Current Bill Text

Read the full stored bill text 
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
Senate Bill 968
Sponsored by Senator TAYLOR; Senators JAMA, MANNING JR, MEEK, NERON, WOODS
CHAPTER .................................................
AN ACT
Relating to deductions from employee wages; creating new provisions; and repealing ORS 292.063.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
(1) As used in this section, “public employee” and “public employer” have
the meanings given those terms under ORS 243.650.
(2) When a public employee receives an erroneous overpayment of wages in an amount
greater than the employee’s entitlement, the public employer may deduct the amount of the
overpayment from wages earned by the public employee provided that:
(a) The deduction is for an overpayment that occurred during the 364-day period imme-
diately preceding the date on which the public employer provides to the public employee the
written statements described under paragraph (b) of this subsection; and
(b) The public employer provides the following to the public employee at least 10 calendar
days before making the deduction:
(A) A written statement itemizing the overpayment amount and purpose of each de-
duction;
(B) A written statement that provides that in no event may the total amount of a de-
duction exceed five percent of the public employee’s gross pay each pay period, unless the
public employee otherwise requests and specifies that a greater percentage or amount be
deducted;and
(C) A written statement informing the public employee that, if the public employee is
terminated or otherwise separates from employment, the public employer can recoup the
balance owed from the public employee’s final paycheck.
SECTION 2.
ORS 292.063 is repealed.
SECTION 3. Notwithstanding any other provision of law, the General Fund appropriation
made to the Bureau of Labor and Industries by section 1, chapter , Oregon Laws 2025
(Enrolled House Bill 5015), for the biennium beginning July 1, 2025, is increased by $114,461
for paycheck overpayment wage claims made by public employees.
Enrolled Senate Bill 968 (SB 968-B) Page 1
Passed by Senate June 18, 2025
..................................................................................
Obadiah Rutledge, Secretary of Senate
..................................................................................
Rob Wagner, President of Senate
Passed by House June 24, 2025
..................................................................................
Julie Fahey, Speaker of House
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled Senate Bill 968 (SB 968-B) Page 2