Bill Text: OR SB573 | 2013 | Regular Session | Introduced
Bill Title: Relating to establishing a lien on employer property based on an unpaid wage claim.
Spectrum: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB573 Detail]
Download: Oregon-2013-SB573-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 705
Senate Bill 573
Sponsored by COMMITTEE ON JUDICIARY
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Establishes right of employee for civil action based on unpaid
wages. Authorizes creation of lien on employer's real and
personal property for unpaid wages under certain circumstances.
Establishes priority of lien for amounts of unpaid wages up to
specified amount. Creates exception.
A BILL FOR AN ACT
Relating to establishing a lien on employer property based on an
unpaid wage claim.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2013 Act is added to and made
a part of ORS 652.310 to 652.414. + }
SECTION 2. { + (1)(a) An employee has a right of civil action
for a claim for unpaid wages against the employer in the full
amount of the employee's unpaid wages due as provided under ORS
652.110, 652.120, 652.130, 652.140, 652.145, 652.150, 652.160,
652.170, 652.190, 652.200, 652.220, 652.230, 652.240, 652.250,
652.260 and 653.055.
(b) An employee who has a claim against the employer under this
subsection or the assignee of an employee who has filed a wage
claim under this subsection has a lien upon all property of the
employer, real and personal, located in this state for the amount
of the unpaid wages to which the employee is entitled.
(2)(a) A lien under subsection (1) of this section upon real
property takes effect on the date on which the employee or the
assignee of the employee:
(A) Files a notice of claim of lien with the county clerk of
the county in which the real property is located;
(B) Pays any required filing fees; and
(C) Serves a copy of the notice filed under this subsection on
the employer by certified mail with return receipt requested.
(b) The county clerk shall enter notice of the lien in the
County Clerk Lien Record.
(3)(a) A lien under subsection (1) of this section upon
personal property takes effect on the date on which the employee
or the assignee of the employee:
(A) Files a notice of claim of lien with the Secretary of
State;
(B) Pays any required filing fees; and
(C) Serves a copy of the notice filed under this subsection on
the employer by certified mail with return receipt requested.
(b) The Secretary of State shall include notice of the lien
that is filed under this subsection in the index maintained by
the secretary for filing financing statements pursuant to ORS
chapter 79.
(4) A notice of claim of lien must be a written statement that:
(a) Is filed under subsection (2) or (3) of this section within
two years after the date on which wages for the final pay period
were due; and
(b) Specifies:
(A) The nature of the claim;
(B) The amount claimed;
(C) All property, real and personal, upon which the claim is
made, in a manner sufficient for identification; and
(D) That the person filing the notice has a claim of lien on
the property.
(5) A lien established under subsection (1) of this section has
priority over the rights of any purchaser of property of the
employer, including any bona fide purchaser under 11 U.S.C. 545
(2), and over all other debts, judgments, decrees, liens or
mortgages against the employer, except:
(a) A lien established by a commercial lending institution as
provided in subsection (6) of this section, regardless of whether
those debts, judgments, decrees, liens or mortgages originated
before or after the lien established under subsection (1) of this
section takes effect; or
(b) A lien held by a public body for unpaid taxes.
(6)(a) A lien established under subsection (1) of this section
does not take priority over a lien of a commercial lending
institution against the employer that was originated before the
lien established under subsection (1) of this section takes
effect.
(b) Notwithstanding paragraph (a) of this subsection, a lien
established under subsection (1) of this section has priority for
the first $3,000 of the lien amount over a lien of a commercial
lending institution that was originated before the lien
established under subsection (1) of this section takes effect.
(7) A lien established under subsection (1) of this section
expires if the employee or the assignee of the employee does not
bring an action to enforce the lien within 120 days after the
claim is filed.
(8) An employee may bring an action against an employer under
subsection (1) of this section without first filing a claim for
unpaid wages with the Bureau of Labor and Industries under ORS
652.310 to 652.414.
(9)(a) The employer against whose property a lien is made under
subsection (1) of this section, or an interested person, may file
with the recording officer of the county in which the claim of
lien on real property is filed, or of the county in which the
services for unpaid wages that are claimed were performed, a bond
executed by a corporation authorized to issue surety bonds in
this state, to the effect that the principal or principals on the
bond shall pay the amount of the claim and all costs and attorney
fees awarded against the property on account of the lien. The
bond must be in an amount that is not less than $1,000 or 150
percent of the amount claimed under the lien, whichever is
greater.
(b) In lieu of the surety bond provided for in paragraph (a) of
this subsection, the employer against whose property a lien is
made under subsection (1) of this section, or an interested
person, may deposit with the treasurer of the county in which the
claim of lien is filed an amount equal to $1,000 or 150 percent
of the amount claimed under the lien, whichever is greater.
(c) A person entitled to file a bond under paragraph (a) of
this subsection or to deposit an amount under paragraph (b) of
this subsection may deliver to the lien claimant a written
notice:
(A) Of the filing of the bond or of the deposit; and
(B) That includes a demand that the lien be released or
foreclosed, and that states that if the lien is not released or
foreclosed, the person may recover the amount of $500 or the
actual costs the person incurred in complying with this
subsection, whichever is greater.
(d) The written notice and demand required under paragraph (c)
of this subsection must be delivered to the lien claimant by
certified mail with return receipt requested. A lien claimant who
fails to release or foreclose a lien is liable to the person who
filed the bond or made the deposit for the greater of $500 or the
actual costs the person incurred in complying with this
subsection if:
(A) The person making the demand has complied with the
requirements of this subsection;
(B) The lien has not been released or foreclosed within 20 days
after the written notice and demand is delivered; and
(C) The lien claimant does not bring an action to release or
foreclose the lien within the time specified in subsection (7) of
this section.
(e) If a lien claimant is served with a written notice and
demand under paragraph (c) of this subsection and is a prevailing
party in the action to release or foreclose the lien, then in
addition to other costs and attorney fees to which the lien
claimant is entitled, the court shall allow the lien claimant
$500 or the actual costs incurred in addressing the demand,
whichever is greater.
(f) If the lien claimant establishes the validity of the lien
claim in an action to enforce the lien, the lien claimant is
entitled to judgment against the sureties upon the bond or
against the money deposited. + }
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