2021 Oregon Revised Statutes
Chapter 656 - Workers’ Compensation
Section 656.206 - Permanent total disability.


(a) "Essential functions" means the primary tasks associated with the job.
(b) "Materially improved medically" means an actual change for the better in the worker’s medical condition that is supported by objective findings.
(c) "Materially improved vocationally" means an actual change for the better in the:
(A) Worker’s vocational capability; or
(B) Likelihood that the worker can return to work in a gainful and suitable occupation.
(d) "Permanent total disability" means, notwithstanding ORS 656.225, the loss, including preexisting disability, of use or function of any portion of the body which permanently incapacitates the worker from regularly performing work at a gainful and suitable occupation.
(e) "Regularly performing work" means the ability of the worker to discharge the essential functions of the job.
(f) "Suitable occupation" means one that the worker has the ability and the training or experience to perform, or an occupation that the worker is able to perform after rehabilitation.
(g) "Wages" means wages as determined under ORS 656.210.
(2) If permanent total disability results from a worker’s injury, the worker shall receive during the period of that disability compensation benefits equal to 66-2/3 percent of wages, no more than 133 percent of the average weekly wage or no less than 33 percent of the average weekly wage.
(3) A worker has the burden of proving permanent total disability status and must establish that the worker is willing to seek regular gainful employment and that the worker has made reasonable efforts to obtain such employment.
(4) When requested by the Director of the Department of Consumer and Business Services, a worker who receives permanent total disability benefits shall file on a form provided by the director, a sworn statement of the worker’s gross annual income for the preceding year along with such other information as the director considers necessary to determine whether the worker regularly performs work at a gainful and suitable occupation.
(5) Each insurer shall reexamine periodically each permanent total disability claim for which the insurer has current payment responsibility to determine whether the worker has materially improved, either medically or vocationally, and is no longer permanently incapacitated from regularly performing work at a gainful and suitable occupation. Reexamination must be conducted every two years or at such other more frequent interval as the director may prescribe. Reexamination must include such medical examinations, vocational evaluations, reports and other records as the insurer considers necessary or the director may require.
(6)(a) If a worker receiving permanent total disability benefits is found to be materially improved and capable of regularly performing work at a gainful and suitable occupation, the insurer or self-insured employer shall issue a notice of closure pursuant to ORS 656.268. Permanent total disability benefits shall be paid through the date of the notice of closure. Notwithstanding ORS 656.268 (5), if a worker objects to a notice of closure issued under this subsection, the worker shall request a hearing. If the worker requests a hearing on the notice of closure before the Hearings Division of the Workers’ Compensation Board within 30 days of the date of the notice of closure, the insurer or self-insured employer shall continue payment of permanent total disability benefits until an order of the Hearings Division or a subsequent order affirms the notice of closure or until another order that terminates the worker’s benefits becomes final. If the worker requests a hearing on the notice of closure more than 30 days from the date of the notice of closure but before the 60-day period for requesting a hearing expires, the insurer or self-insured employer shall resume paying permanent total disability benefits from the date the hearing is requested and shall continue payment of benefits until an order of the Hearings Division or a subsequent order affirms the notice of closure or until another order that terminates the worker’s benefits becomes final. If the notice of closure is upheld by the Hearings Division, the insurer or self-insured employer must be reimbursed from the Workers’ Benefit Fund for the amount of permanent total disability benefits paid after the date of the notice of closure issued under this subsection.
(b) An insurer or self-insured employer must establish that the condition of a worker who is receiving permanent total disability benefits has materially improved by a preponderance of the evidence presented at hearing.
(c) Medical examinations or vocational evaluations used to support the issuance of a notice of closure under this subsection must include at least one report in which the author personally observed the worker.
(d) Notwithstanding section 54 (3), chapter 2, Oregon Laws 1990, the Hearings Division of the Workers’ Compensation Board may request the director to order a medical arbiter examination of an injured worker who has requested a hearing under this subsection.
(7) A worker who has had permanent total disability benefits terminated under this section by an order that has become final is eligible for vocational assistance pursuant to ORS 656.340. Notwithstanding ORS 656.268 (10), if a worker has enrolled in and is actively engaged in a training program, when vocational assistance provided under this section ends or the worker ceases to be enrolled and actively engaged in the training program, the insurer or the self-insured employer shall determine the extent of disability pursuant to ORS 656.214.
(8) A worker receiving permanent total disability benefits is required, if requested by the director, the insurer or the self-insured employer, to submit to a vocational evaluation at a time reasonably convenient to the worker as may be provided by the rules of the director. No more than three evaluations may be requested except after notification to and authorization by the director. If the worker refuses to submit to or obstructs a vocational evaluation, the rights of the worker to compensation must be suspended with the consent of the director until the evaluation has taken place, and no compensation is payable for the period during which the worker refused to submit to or obstructed the evaluation. The insurer or self-insured employer shall pay the costs of the evaluation and related services that are reasonably necessary to allow the worker to attend the evaluation requested under this subsection. As used in this subsection, "related services" includes, but is not limited to, wages, child care, travel, meals and lodging.
(9) Notwithstanding any other provisions of this chapter, if a worker receiving permanent total disability incurs a new compensable injury, the worker’s entitlement to compensation for the new injury shall be limited to medical benefits pursuant to ORS 656.245 and permanent partial disability benefits for impairment, as determined in the manner set forth in ORS 656.214 (2).
(10) When a worker eligible for benefits under this section returns to work, if the combined total of the worker’s post-injury wages plus permanent total disability benefit exceeds the worker’s wage at the time of injury, the worker’s permanent total disability benefit must be reduced by the amount the worker’s wages plus statutory permanent total disability benefit exceeds the worker’s wage at injury.
(11) For purposes of this section:
(a) A gainful occupation for workers with a date of injury prior to January 1, 2006, who were:
(A) Employed continuously for 52 weeks prior to the injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the worker’s average weekly wages from all employment for the 52 weeks prior to the date of injury.
(B) Not employed continuously for the 52 weeks prior to the date of injury, but who were employed for at least four weeks prior to the date of injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the worker’s average weekly wage from all employment for the 52 weeks prior to the date of injury based on weeks of actual employment, excluding any extended periods of unemployment.
(C) Employed for less than four weeks prior to the date of injury with no other employment during the 52 weeks prior to the date of injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the average weekly wages intended by the parties at the time of initial hire.
(b) A gainful occupation for workers with a date of injury on or after January 1, 2006, who were:
(A) Employed continuously for 52 weeks prior to the injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the worker’s average weekly wages from all employment for the 52 weeks prior to the date of injury adjusted by the percentage of change in the applicable federal poverty guidelines for a family of three from the date of injury to the date of evaluation of the extent of the worker’s disability.
(B) Not employed continuously for the 52 weeks prior to the date of injury, but who were employed for at least four weeks prior to the date of injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the worker’s average weekly wage from all employment for the 52 weeks prior to the date of injury based on weeks of actual employment, excluding any extended periods of unemployment and as adjusted by the percentage of change in the applicable federal poverty guidelines for a family of three from the date of injury to the date of evaluation of the extent of the worker’s disability.
(C) Employed for less than four weeks prior to the date of injury with no other employment during the 52 weeks prior to the date of injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the average weekly wages intended by the parties at the time of initial hire adjusted by the percentage of change in the applicable federal poverty guidelines for a family of three from the date of injury to the date of evaluation of the extent of the worker’s disability. [Amended by 1953 c.670 §4; 1955 c.553 §1; 1957 c.452 §1; 1959 c.517 §1; 1965 c.285 §22a; 1969 c.500 §2; 1973 c.614 §2; 1974 c.41 §5; 1975 c.506 §1; 1977 c.430 §1; 1981 c.874 §12; 1983 c.816 §3; 1995 c.332 §14; 1999 c.313 §13; 1999 c.927 §3; 2003 c.657 §§5,6; 2005 c.461 §§1,2; 2007 c.274 §3; 2011 c.99 §2; 2017 c.70 §1]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 16 - Trade Practices, Labor and Employment

Chapter 656 - Workers’ Compensation

Section 656.005 - Definitions.

Section 656.012 - Findings and policy.

Section 656.017 - Employer required to pay compensation and perform other duties; state not authorized to be direct responsibility employer.

Section 656.018 - Effect of providing coverage; exclusive remedy.

Section 656.019 - Civil negligence action for claim denied on basis of failure to meet major contributing cause standard; statute of limitations.

Section 656.020 - Damage actions by workers against noncomplying employers; defenses outlawed.

Section 656.021 - Coverage exception for laborers under contracts with construction and landscape contractor licensees.

Section 656.025 - Individuals engaged in commuter ridesharing not subject workers; conditions.

Section 656.027 - Who are subject workers.

Section 656.029 - Obligation of person awarding contract to provide coverage for workers under contract; exceptions; effect of failure to provide coverage.

Section 656.031 - Coverage for municipal volunteer personnel.

Section 656.033 - Coverage for participants in work experience or school directed professional training programs.

Section 656.039 - Election of coverage for workers not subject to law; procedure; cancellation; election of coverage for home care workers and personal support workers.

Section 656.041 - City or county may elect to provide coverage for adults in custody.

Section 656.044 - State Accident Insurance Fund Corporation may insure liability under Longshoremen’s and Harbor Workers’ Compensation Act; procedure; cancellation.

Section 656.046 - Coverage of persons in college work experience and professional education programs.

Section 656.052 - Prohibition against employment without coverage; proposed order declaring noncomplying employer; effect of failure to comply.

Section 656.054 - Claim of injured worker of noncomplying employer; procedure for disputing acceptance of claim; recovery of costs from noncomplying employer; restrictions.

Section 656.056 - Subject employers must post notice of manner of compliance.

Section 656.070 - Definitions for ORS 656.027, 656.070 and 656.075.

Section 656.075 - Exemption from coverage for newspaper carriers; casualty insurance and other requirements.

Section 656.126 - Coverage while temporarily in or out of state; judicial notice of other state’s laws; agreements between states relating to conflicts of jurisdiction; limitation on compensation for claims in this state and other jurisdictions.

Section 656.128 - Sole proprietors, limited liability company members, partners, independent contractors may elect coverage by insurer; cancellation.

Section 656.132 - Coverage of minors.

Section 656.135 - Coverage of deaf school work experience trainees.

Section 656.138 - Coverage of apprentices, trainees participating in related instruction classes.

Section 656.140 - Coverage of persons operating equipment for hire.

Section 656.156 - Intentional injuries.

Section 656.160 - Effect of incarceration on receipt of compensation.

Section 656.170 - Validity of provisions of certain collective bargaining agreements; alternative dispute resolution systems; exclusive medical service provider lists; authority of director.

Section 656.172 - Applicability of and criteria for establishing program under ORS 656.170.

Section 656.174 - Rules.

Section 656.202 - Compensation payable to subject worker in accordance with law in effect at time of injury; exceptions; notice regarding payment.

Section 656.204 - Death.

Section 656.206 - Permanent total disability.

Section 656.209 - Offsetting permanent total disability benefits against Social Security benefits.

Section 656.210 - Temporary total disability; payment during medical treatment; election; rules.

Section 656.212 - Temporary partial disability.

Section 656.214 - Permanent partial disability.

Section 656.216 - Permanent partial disability; method of payment; effect of prior receipt of temporary disability payments.

Section 656.218 - Continuance of permanent partial disability payments to survivors; effect of death prior to final claim disposition.

Section 656.225 - Compensability of certain preexisting conditions.

Section 656.228 - Payments directly to beneficiary or custodian.

Section 656.230 - Lump sum award payments.

Section 656.232 - Payments to aliens residing outside of United States.

Section 656.234 - Compensation not assignable nor to pass by operation of law; certain benefits subject to support obligations.

Section 656.236 - Compromise and release of claim matters except for medical benefits; approval by Administrative Law Judge or board; approval by director for certain reserve reimbursements; restriction on charging costs to workers; restriction on jo...

Section 656.245 - Medical services to be provided; services by providers not members of managed care organizations; authorizing temporary disability compensation and making finding of impairment for disability rating purposes by certain providers; re...

Section 656.247 - Payment for medical services prior to claim acceptance or denial; review of disputed services; duty of health benefit plan to pay for certain medical services in denied claim.

Section 656.248 - Medical service fee schedules; basis of fees; application to service provided by managed care organization; resolution of fee disputes; rules.

Section 656.252 - Medical report regulation; rules; duties of attending physician or nurse practitioner; disclosure of information; notice of changing attending physician or nurse practitioner; copies of medical service billings to be furnished to wo...

Section 656.254 - Medical report forms; penalties and other sanctions; procedure for declaring health care practitioner ineligible for workers’ compensation reimbursement.

Section 656.260 - Certification procedure for managed health care provider; peer review, quality assurance, service utilization and contract review; confidentiality of certain information; immunity from liability; rules; medical service dispute resol...

Section 656.262 - Processing of claims and payment of compensation; payment by employer; acceptance and denial of claim; penalties and attorney fees; cooperation by worker and attorney in claim investigation; rules.

Section 656.264 - Compensable injury, denied claim and other reports.

Section 656.265 - Notice of accident from worker.

Section 656.266 - Burden of proving compensability and nature and extent of disability.

Section 656.267 - Claims for new and omitted medical conditions.

Section 656.268 - Claim closure; termination of temporary total disability benefits; reconsideration of closure; medical arbiter to make findings of impairment for reconsideration; credit or offset for fraudulently obtained or overpaid benefits; rule...

Section 656.273 - Aggravation for worsened conditions; procedure; limitations; additional compensation.

Section 656.277 - Request for reclassification of nondisabling claim; nondisabling claim procedure; attorney fees.

Section 656.278 - Board has continuing authority to alter earlier action on claim; limitations.

Section 656.283 - Hearing rights and procedure; rules; impeachment evidence; use of standards for evaluation of disability.

Section 656.287 - Use of vocational reports in determining loss of earning capacity at hearing; rules.

Section 656.289 - Orders of Administrative Law Judge; review; disposition of claim when compensability disputed; approval of director required for reimbursement of certain expenditures.

Section 656.291 - Expedited Claim Service; jurisdiction; procedure; representation; rules.

Section 656.295 - Board review of Administrative Law Judge orders; application of standards for evaluation of disability.

Section 656.298 - Judicial review of board orders; settlement during pendency of petition for review.

Section 656.307 - Determination of issues regarding responsibility for compensation payment; mediation or arbitration procedure; rules.

Section 656.308 - Responsibility for payment of claims; effect of new injury; denial of responsibility; procedure for joining employers and insurers; attorney fees; limitation on filing claims subject to settlement agreement.

Section 656.310 - Presumption concerning notice of injury and self-inflicted injuries; reports as evidence.

Section 656.313 - Stay of compensation pending request for hearing or review; procedure for denial of claim for medical services; reimbursement.

Section 656.319 - Time within which hearing must be requested.

Section 656.325 - Required medical examination; worker-requested examination; qualified physicians; claimant’s duty to reduce disability; suspension or reduction of benefits; cessation or reduction of temporary total disability benefits; rules; penal...

Section 656.327 - Review of medical treatment of worker; findings; review; costs.

Section 656.328 - List of authorized providers and standards of professional conduct for providers of independent medical examinations; exclusion; complaints; rules.

Section 656.331 - Contact, medical examination of worker represented by attorney prohibited without written notice; rules.

Section 656.340 - Vocational assistance procedure; eligibility criteria; service providers; resolution of vocational assistance disputes; rules.

Section 656.360 - Confidentiality of worker medical and vocational claim records.

Section 656.362 - Liability for disclosure of worker medical and vocational claim records.

Section 656.382 - Penalties and attorney fees payable by insurer or employer in processing claim.

Section 656.383 - Attorney fees in cases prior to decision or after request for hearing.

Section 656.385 - Attorney fees in cases regarding certain medical service or vocational rehabilitation matters; rules; limitation; penalties.

Section 656.386 - Recovery of attorney fees, expenses and costs in appeal on denied claim; attorney fees in other cases.

Section 656.388 - Approval of attorney fees required; lien for fees; fee schedule; adjustment; report of legal service costs.

Section 656.390 - Frivolous appeals, hearing requests or motions; expenses and attorney fee.

Section 656.403 - Obligations of self-insured employer.

Section 656.407 - Qualifications of insured employers.

Section 656.419 - Workers’ compensation insurance contracts.

Section 656.423 - Cancellation of coverage by employer; notice required.

Section 656.427 - Termination of workers’ compensation insurance contract or surety bond liability by insurer.

Section 656.430 - Certification of self-insured employer; employer groups; insurance policy requirements; revocation of certification; rules.

Section 656.434 - Certification effective until canceled or revoked; revocation of certificate.

Section 656.440 - Notice of certificate revocation; appeal; effective date.

Section 656.441 - Advancement of funds from Workers’ Benefit Fund for compensation due workers insured by certain decertified self-insured employer groups.

Section 656.443 - Procedure upon default by employer or self-insured employer group; rules.

Section 656.445 - Advancement of funds from Workers’ Benefit Fund for compensation due workers insured by insurer in default; limitations; rules.

Section 656.447 - Sanctions against insurer for failure to comply with contracts, orders or rules.

Section 656.455 - Self-insured employers to process claims and make records available at authorized locations; disposal of records; expenses for out-of-state audits; rules.

Section 656.504 - Rates, charges, fees and reports by employers insured by State Accident Insurance Fund Corporation.

Section 656.505 - Estimate of payroll when employer fails to file payroll report; demand for and recovery of premiums and assessments.

Section 656.506 - Assessments for programs; setting assessment amount; determination by director of benefit level.

Section 656.508 - Authority to fix premium rates for employers.

Section 656.526 - Distribution of dividends from surplus in Industrial Accident Fund.

Section 656.536 - Premium charges for coverage of reforestation cooperative workers based on prevailing wage; manner of determining prevailing wage.

Section 656.552 - Deposit of cash, bond or letter of credit to secure payment of employer’s premiums.

Section 656.554 - Injunction against employer failing to comply with deposit requirements.

Section 656.560 - Default in payment of premiums, fees, assessments or deposit; remedies.

Section 656.562 - Moneys due Industrial Accident Fund as preferred claims; moneys due department as taxes due state.

Section 656.564 - Lien for amounts due from employer on real property, improvements and equipment on or with which labor is performed by workers of employer.

Section 656.566 - Lien on property of employer for amounts due.

Section 656.580 - Payment of compensation notwithstanding cause of action for damages; lien on cause of action for compensation paid.

Section 656.583 - Paying agency may compel election and prompt action.

Section 656.591 - Election not to bring action operates as assignment of cause of action; repayments to department by paying agency.

Section 656.593 - Procedure when worker or beneficiary elects to bring action; release of liability and lien of paying agency in certain cases.

Section 656.595 - Precedence of cause of action; compensation paid or payable not to be an issue.

Section 656.596 - Damage recovery as offset against compensation; recovery procedure; notice to paying agency.

Section 656.605 - Workers’ Benefit Fund; uses and limitations.

Section 656.612 - Assessments for department activities; amount; collection procedure.

Section 656.614 - Self-Insured Employer Adjustment Reserve; Self-Insured Employer Group Adjustment Reserve.

Section 656.622 - Reemployment Assistance Program; claim data not to be used for insurance rating; rules.

Section 656.625 - Reopened Claims Program; rules.

Section 656.628 - Workers with Disabilities Program; use of funds; conditions and limitations; rules.

Section 656.630 - Oregon Institute of Occupational Health Sciences funding; report of activities.

Section 656.632 - Industrial Accident Fund.

Section 656.634 - Trust fund status of Industrial Accident Fund.

Section 656.635 - Reserve accounts in Industrial Accident Fund.

Section 656.642 - Emergency Fund.

Section 656.702 - Disclosure of records of corporation, department and insurers.

Section 656.704 - Actions and orders regarding matters concerning claim and matters other than matters concerning claim; authority of director and board; administrative and judicial review; rules.

Section 656.709 - Ombudsman for injured workers; ombudsman for small business; duties.

Section 656.712 - Workers’ Compensation Board; members; qualifications; chairperson; confirmation; term; vacancies.

Section 656.714 - Removal of board member.

Section 656.716 - Board members not to engage in political or business activity that interferes with duties as board member; oath and bond required.

Section 656.718 - Chairperson; quorum; panels.

Section 656.724 - Administrative Law Judges; appointment; qualifications; term; performance survey; removal procedure.

Section 656.725 - Duties and status of Administrative Law Judges.

Section 656.726 - Duties and powers to carry out workers’ compensation and occupational safety laws; rules.

Section 656.727 - Rules for administration of benefit offset.

Section 656.730 - Assigned risk plan.

Section 656.735 - Civil penalty for noncomplying employers; amount; liability of partners and of corporate and limited liability company officers; effect of final order; penalty as preferred claim; disposition of moneys collected.

Section 656.740 - Review of proposed order declaring noncomplying employer or nonsubjectivity determination; review of proposed assessment or civil penalty; insurer as party; hearing.

Section 656.745 - Civil penalty for inducing failure to report claims; limits on penalty amounts; failure to pay assessments; failure to comply with statutes, rules or orders; amount; procedure.

Section 656.751 - State Accident Insurance Fund Corporation created; board; members’ qualifications; terms; compensation; expenses; function; report.

Section 656.752 - State Accident Insurance Fund Corporation; purpose and functions.

Section 656.753 - State Accident Insurance Fund Corporation exempt from certain financial administration laws; contracts with state agencies for services.

Section 656.754 - Manager; appointment; functions.

Section 656.758 - Inspection of books, records and payrolls; statement of employment data; civil penalty for misrepresentation; failure to submit books for inspection and refusal to keep correct payroll.

Section 656.772 - Annual audit of State Accident Insurance Fund Corporation by Secretary of State; scope of review; report of audit.

Section 656.774 - Annual report by State Accident Insurance Fund Corporation to Secretary of State; contents.

Section 656.780 - Certification and training of claims examiners; records of certification and training of examiners; department inspection of records; penalties; rules.

Section 656.790 - Workers’ Compensation Management-Labor Advisory Committee; membership; duties; expenses.

Section 656.795 - Informational materials for nurse practitioners.

Section 656.797 - Certification by nurse practitioner of review of required materials.

Section 656.798 - Duty of insurer, self-insured employer and self-insured employer group to provide information to director.

Section 656.799 - Informational materials for other health care professionals; certification of review of materials.

Section 656.802 - Occupational disease; mental disorder; presumptions as to stress disorders; proof.

Section 656.807 - Time for filing of claims for occupational disease; procedure.

Section 656.850 - License; compliance with workers’ compensation and safety laws.

Section 656.855 - Licensing system for worker leasing companies; rules; fees; dedication of moneys received.

Section 656.990 - Penalties.