Wage theft victims in Oregon who make $52,710 or more per year will no longer have their cases investigated by the state as of Oct. 1.
The Bureau of Labor and Industries is implementing an income threshold that it estimates will lead to the automatic dismissal of 17% of cases because the claimant makes too much money.
The agency will implement a threshold of 250% of the poverty line, according to BOLI Commissioner Christina Stephenson.
“So what that means,” Stephenson told the state Senate’s business and labor committee Monday, “Workers who make more than this would not be eligible to have their claim go through BOLI — and that is a little over $25 an hour, a little over $50,000. So you’re making $55,000? Can’t come to BOLI.”
FILE - BOLI Commissioner Christina Stephenson in an undated provided photo. She said the agency's budget is inadequate to cover the cost of investigating all the wage theft complaints coming in.
Courtesy of Christina Stephenson for Oregon
Stephenson said the income threshold is needed because there are not enough investigators to work through the backlog, let alone take on new cases.
Oregon’s workforce has expanded over the decades as the state population has grown. At the same time, the state Legislature has continued to implement protections for workers, including their ability to challenge wage concerns. Put together, those things are straining state agencies where staffing and funding levels have not kept pace with the increase in responsibilities.
Stephenson told lawmakers that claims have gone up dramatically — by more than 200% since 2020.
The income threshold news comes as BOLI is requesting a more than 35% bump in funding when state lawmakers craft the 2025-27 budget. Right now the agency has a nearly $60 million budget with about 150 full-time staff members.
Stephenson warned the committee that if the funding increase doesn’t come through, BOLI will need to lower its income threshold so it would result in a dismissal of 70% of cases.
“Oregon is known for being a state that has strong worker protections,” Stephenson said. “And the reality is that we’re struggling to actually enforce those protections. So they’re essentially meaningless.”
Editor’s Note: This story has been updated to reflect the correct percentage of the poverty line at which BOLI will start rejecting claims.