Oregon Employers Should Take Care with Employee Payroll Deductions
By Greg K. Hitchcock and Jenna L. Mooney
Oregon employers should be aware that when they deduct amounts from an employee's wages they have only seven days to pay the withheld amounts to the employee's intended recipient, unless the employee agrees to another deadline. This "seven-day rule," a little-noticed provision passed by the Oregon Legislature in 2007, applies to deductions for things such as charitable contributions, union dues, parking and transit, day care and certain insurance plans. The seven-day rule also applies to required deductions without another specified time for payment such as child support. The penalties are potentially severe for failing to satisfy this new requirement, which first became effective in 2008. Continue reading...
