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News / Northwest

State program pays lost wages when companies close

The Columbian
Published: June 6, 2010, 12:00am

SALEM, Ore. (AP) — Even amid companies closing in the struggling economy, an Oregon program that pays workers wages lost from shuttered employers is not seeing an increase in demand. Officials think it’s because not many people know about the program.

The Statesman Journal reports that Oregon is one of a few states that have dedicated funds to cover unpaid wages when a company fails or doesn’t have the money for payroll.

State Labor Commissioner Brad Avakian says the state was expecting a spike in claims, but those never materialized. He says that people probably don’t know about the program.

The state provides a maximum of up to $4,000 in wages. It does not include sick leave or vacation.

The money is funded by a tax on employers. The balance in the Wage Security Fund at the moment is more than $2.3 million.

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Information from: Statesman Journal, http://www.statesmanjournal.com

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