State of Oregon $15M Workday Payroll Class Action Settlement

State of Oregon

Nonexempt employees who worked for the state of Oregon at any time from Dec. 1, 2022, to June 23, 2025, may qualify to claim up to $3,112.50 from a class action settlement.

Oregon agreed to pay $15,000,000 to resolve a class action lawsuit alleging violations of Oregon wage laws following the implementation of the Workday payroll system. The plaintiffs claimed the new system caused payroll errors for thousands of state employees.

Who are the class members?

Class members qualify for the settlement if the state of Oregon employed them as a nonexempt employee at any point between Dec. 1, 2022, and June 23, 2025. This includes both current and former employees.

Class membership is determined using state employment records. Those who received a notice about the settlement have been identified as a potential class member.

How much is the Oregon employee payout?

The amount each class member can receive depends on their employment status and whether they experienced specific losses due to payroll system issues. The settlement fund will be distributed as follows:

Every nonexempt employee (current or former) will receive a minimum payment of $100.
Nonexempt employees who have been terminated will receive a minimum payment of $12.50.
Class members can also submit claims for additional compensation if they experienced:

Out-of-pocket expenses caused by payroll errors (up to $500)
Significant hardship, such as loss of housing, loss of a vehicle or other major life events directly resulting from payroll problems (up to $2,500)

Anyone who submits a claim will also be entitled to recover the minimum payments. Therefore, a class member may receive $3,112.50 if they are entitled to all payments under the settlement.

How to claim a class action rebate

Eligible class members can receive compensation in two ways:

Do nothing: Nonexempt employees will automatically receive the minimum payment if the settlement is approved by the court. No action is required to receive this payment.
Submit a claim for additional compensation: Nonexempt employees who experienced out-of-pocket losses or significant hardship must submit a claim to receive additional payment.

Class members file a claim online or mail a written claim to the settlement administrator. All claims must be submitted or postmarked no later than Aug. 25, 2025.

Settlement administrator's mailing address: Frasco v State of Oregon Settlement Administrator, c/o Rust Consulting Inc. - 8964, PO Box 2396, Faribault, MN 55021-9096

Written claims must include:

The class member's name
The class member's signature
The class member's address
The amount the class member is claiming
The reason for the claim
Whether the class member is claiming out-of-pocket expenses, significant hardship or both
A statement that the class member wishes to submit a claim in the matter of Frasco et al. v. State of Oregon, Case No. 23CV04452

What proof or documentation is needed to submit a claim?

To file an online claim, class members must provide the claimant ID number located under the bar code on the settlement notice they received. Those who did not receive a notice should call 800-436-8897.
For out-of-pocket expenses, class members must provide receipts, bank statements or other proof of the expenses incurred.
For significant hardship, class members must provide documentation, such as eviction notices, repossession documents or other records showing payroll issues caused the hardship.

Payout options

Payments will be distributed by paper check.

Checks that are not deposited or cashed within 60 days will be redistributed 50% to Legal Aid Services of Oregon and 50% to the following organizations:

Jobs with Justice
Kids’ Chance Oregon
Northwest Workers’ Justice Project
Oregon Center for Public Policy
Oregon Futures Lab Fund
Voz Workers’ Rights Education Project.

$15 million Workday settlement fund breakdown

The $15,000,000 settlement fund covers:

Settlement administration costs: To be determined
Attorneys' fees: $3,750,000
Attorneys' expenses: To be determined
Service awards to class representatives: $7,500 each ($60,000 total)
Payments to eligible class members: Remainder of the fund

Important dates

Claim deadline: Aug. 25, 2025
Opt-out deadline: Aug. 25, 2025
Fairness hearing: Oct. 3, 2025

When is the Frasco et al. v. State of Oregon payout date?

Payments to class members will be made after the court grants final approval of the settlement and any appeals are resolved.

Why was this class action settlement reached?

The class action lawsuit alleged the state of Oregon violated wage laws after implementing the Workday payroll system. The plaintiffs claimed the system’s rollout led to underpayments, overpayments and other wage issues.

The state denies any wrongdoing but agreed to settle to resolve the claims, avoid further litigation and provide relief to affected employees. As part of the settlement, Oregon will also issue a statement of apology and waive certain overpayments.