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HB 2802

Relating to lump sum payments of permanent partial disability awards.

2025 Regular Session

Oregon law HB 2802 restructures permanent partial disability lump sum payment options for workers' compensation, effective January 1, 2026.

Chapter 25, (2025 Laws): Effective date January 1, 2026.
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Bill Summary · HB 2802

Legislative bill overview

HB 2802 modifies how Oregon handles lump sum payments for permanent partial disability (PPD) awards under workers' compensation. The bill, now law, takes effect January 1, 2026, and adjusts the terms, amounts, or conditions under which injured workers can receive single payments instead of ongoing benefit streams for permanent injuries.

Why is this important

Workers' compensation PPD awards directly affect injured workers' financial security and employers' liability costs. Changes to lump sum payment policies influence whether injured workers receive immediate cash settlements or structured payments, impacting both individual financial planning and the state's workers' compensation system's long-term obligations.

Potential points of contention

  • Worker vs. employer interests: Lump sum payments may benefit workers needing immediate funds but could disadvantage those who need lifetime income protection; employers may prefer certainty of upfront costs
  • Adequacy of settlements: Questions about whether new lump sum amounts fairly compensate workers for permanent disabilities or undervalue long-term injury impacts
  • Implementation timeline: The January 1, 2026 effective date affects claims filed before and after, potentially creating administrative complexity and differential treatment for similarly situated workers

Compiled from official sources — confirm details with the bill’s official record.

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