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Oregon Revised Statutes

Or. Rev. Stat. § 656.596 (2026)

Damage recovery as offset against compensation; recovery procedure; notice to paying agency

✓ current as of May 2026
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      656.596 Damage recovery as offset against compensation; recovery procedure; notice to paying agency. (1) If no workers’ compensation claim has been filed or accepted at the time a worker or the beneficiaries of a worker recover damages from a third person or noncomplying employer pursuant to ORS 656.576 to 656.596, the amount of the damages shall constitute an offset against compensation due the worker or beneficiaries of the worker for the injuries for which the recovery is made to the extent of any lien that would have been authorized by ORS 656.576 to 656.596 if a workers’ compensation claim had been filed and accepted at the time of recovery of damages.

      (2) The offset created by subsection (1) of this section shall be recoverable from compensation payable to the worker, the worker’s beneficiaries and the worker’s attorney. No compensation payments shall be made to the worker, the worker’s beneficiaries or the worker’s attorney until the offset has been fully recovered.

      (3) The worker or the beneficiaries of the worker shall notify the paying agency or potential paying agency of the amount of any damages recovered from a third person or noncomplying employer at the time of recovery or when the worker or the beneficiaries of a worker file a workers’ compensation claim that is subject to ORS 656.576 to 656.596. [1993 c.644 §2; 1995 c.332 §48]

 

      656.597 [Formerly 656.326; repealed by 1971 c.70 §2]

 

FUNDS; SOURCE; INVESTMENT; DISBURSEMENT

 

(General Provisions)

Notes of Decisions
Cited in 3 cases (1 in the last 5 years), 1999–2022 · leading case: Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999).
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Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999). · cites it 2× “576 to ORS 656.596 govern the interaction between the workers' compensation system and recovery against third parties and noncomplying employers.”
Liberty Nw. Ins. v. Oregon Ins. Guarantee Ass'n, 136 P.3d 49 (Or. Ct. App. 2006). “576 and ORS 656.596. At the time of the accident, Clifton and Knutson were insured for liability by Reliance Insurance Company (Reliance).”
Sedgwick CMS, Inc. v. Dover, 507 P.3d 793 (Or. Ct. App. 2022). · cites it 2× “576 through ORS 656.596. If a compensable injury is asserted to be due to the negligence or wrong of a third person, entitling the worker to seek a remedy against the third person under ORS 656.”
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