Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No, unless it is collectively bargained.
Explanation:
Public employees must provide written authorization for wage deferrals, preventing automatic enrollment in voluntary retirement plans.
Relevant State Laws – Or. Rev. Stat. Ann. § 652.610, § 243.440
Oregon’s general wage withholding statute prohibits employers from withholding an employee’s wages, unless: “(a) The employer is required to do so by law; (b) The deductions are voluntarily authorized in writing by the employee, are for the employee’s benefit and are recorded in the employer’s books. . . .” Or. Rev. Stat. Ann. § 652.610
“[t]he state and an eligible state employee may enter into a written deferred compensation contract that provides that a specified portion of the compensation payable to the employee for services rendered by the employee will not be paid or otherwise made available at the time the services are rendered but instead will be paid or otherwise made available at some future date.” Or. Rev. Stat. Ann. § 243.440