Oregon Revised Statutes

Or. Rev. Stat. § 656.583 (2026)

Paying agency may compel election and prompt action

✓ current as of May 2026
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      656.583 Paying agency may compel election and prompt action. (1) The paying agency may require the worker or other beneficiaries or the legal representative of a deceased worker to exercise the right of election provided in ORS 656.578 by serving a written demand by registered or certified mail or by personal service upon such worker, beneficiaries or legal representative.

      (2) Unless such election is made within 60 days from the receipt or service of such demand and unless, after making such election, an action against such third person is instituted within such time as is granted by the paying agency, the worker, beneficiaries or legal representative is deemed to have assigned the cause of action to the paying agency. The paying agency shall allow the worker, the beneficiaries or legal representative of the worker at least 90 days from the making of such election to institute such action. In any case where an insurer of a third person is also the insurer of the employer, notice of this fact must be given in writing by the insurer to the injured worker and to the Director of the Department of Consumer and Business Services within 10 days after the occurrence of any accident which may result in the assertion of the claim against the third person by the injured worker. [Formerly 656.316; 1981 c.854 §43]

 

      656.584 [Amended by 1965 c.285 §68d; renumbered 656.624]

 

      656.586 [Renumbered 656.720]

Notes of Decisions
Cited in 7 cases (1 in the last 5 years), 1981–2022 · leading case: Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). · cites it 4× “ORS 656.583 (1985). If an injured worker elected to proceed with an action against a third party (or a noncomplying employer) for damages, the worker was required to give written notice to the workers' compensation insurer paying benefits and to file proof of service of that…”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). · cites it 2× “” ORS 656.583(1) sets forth the election procedure: “The paying agency [the self-insured employer or insurer paying benefits to the worker] may require the worker * * * to exercise the right of election provided in ORS 656.”
State v. Divers, 625 P.2d 681 (Or. Ct. App. 1981). “ORS 656.583. Because we cannot tell from the record in this case whether or not the injured worker has made an election, we remand this case to the trial court to require the defendant to make restitution in the amount of $662 for lost time benefits to the injured worker and the…”
Liberty Mut. Ins. v. Schwanenberg, 286 P.3d 905 (Or. Ct. App. 2012). · cites it 25× “” ORS 656.583 authorizes a paying agency to require a worker or the worker’s beneficiary to make the election permitted under ORS 656.”
Toole ex rel. Prof'l Liab. Fund v. EBI Companies, 815 P.2d 216 (Or. Ct. App. 1991). “PLF argues that, under the third party recovery statutes, the Board had no jurisdiction over the settlement proceeds.”
Harvey v. Lou Surcamp Logging, 785 P.2d 383 (Or. Ct. App. 1990). · cites it 2× “ORS 656.583. Liberty’s election notice, sent to claimant by certified mail in March, 1986, stated: “This letter will constitute an election notice.”
Sedgwick CMS, Inc. v. Dover, 507 P.3d 793 (Or. Ct. App. 2022). · cites it 2× “Indeed, a paying agency may compel an injured worker to make such an election, ORS 656.583(1). If the worker elects not to proceed with a third- party action, then the paying agency may pursue the action.”
— Or. Rev. Stat. § 656.583(1) — 3 cases
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). “” ORS 656.583(1) sets forth the election procedure: “The paying agency [the self-insured employer or insurer paying benefits to the worker] may require the worker * * * to exercise the right of election provided in ORS 656.”
Liberty Mut. Ins. v. Schwanenberg, 286 P.3d 905 (Or. Ct. App. 2012). “” ORS 656.583 authorizes a paying agency to require a worker or the worker’s beneficiary to make the election permitted under ORS 656.”
Sedgwick CMS, Inc. v. Dover, 507 P.3d 793 (Or. Ct. App. 2022). “Indeed, a paying agency may compel an injured worker to make such an election, ORS 656.583(1). If the worker elects not to proceed with a third- party action, then the paying agency may pursue the action.”
— Or. Rev. Stat. § 656.583(2) — 4 cases
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). “ORS 656.583 (1985). If an injured worker elected to proceed with an action against a third party (or a noncomplying employer) for damages, the worker was required to give written notice to the workers' compensation insurer paying benefits and to file proof of service of that…”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). “” ORS 656.583(1) sets forth the election procedure: “The paying agency [the self-insured employer or insurer paying benefits to the worker] may require the worker * * * to exercise the right of election provided in ORS 656.”
Liberty Mut. Ins. v. Schwanenberg, 286 P.3d 905 (Or. Ct. App. 2012). “” ORS 656.583 authorizes a paying agency to require a worker or the worker’s beneficiary to make the election permitted under ORS 656.”
Sedgwick CMS, Inc. v. Dover, 507 P.3d 793 (Or. Ct. App. 2022). “Indeed, a paying agency may compel an injured worker to make such an election, ORS 656.583(1). If the worker elects not to proceed with a third- party action, then the paying agency may pursue the action.”
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