Injured Oregon workers may never know that the union movement put money in their pockets, but below-the-radar work earlier this year by AFSCME, UFCW, and the Oregon Labor Federation will increase “time-loss” benefits in Oregon’s workers compensation system. Up to now, state workers comp insurance paid just 66% of previous wages when someone was unable to work due to a workplace injury. Starting Jan. 1, 2027 it will pay 75% for workers earning up to 133% of the average weekly wage, and 65% on wages above that. That’s some wonky detail, but basically it means every injured worker will receive increased wage replacement. That will make a real difference, especially for lower-income injured workers.
The change was the subject of Senate Bill 1519. Governor Tina Kotek signed that into law March 31 and celebrated it again with a ceremonial signing on Sept. 9.
The Oregon Legislature doesn’t consider changes to the workers compensation system unless the proposal has the support of both employer and worker representatives on the Management Labor Advisory Committee (MLAC). A proposal to increase time loss benefits stalled at MLAC in 2025, but got consensus support this year.
Employer premiums for workers compensation insurance have been declining even though medical and other costs have been going up. That could reflect safer workplaces or the decline of dangerous industries. But injured workers’ reluctance to continue claims because wage replacement has been so low could also be a factor.
“You can’t go to somebody living close to the poverty line, tell them that you’re going to chop their pay for as long as they persist in their claim, and expect them to do anything other than whatever it takes to feed their family,” MLAC co-chair Scott Strickland told the Labor Press. Strickland is an attorney for Sheet Metal Workers Local 16.
“This was a good-for-workers policy that organized labor was able to take up the torch on,” Strickland said.
