The 1913 Oregon Legislative Assembly gave Oregon its first workers' compensation law, which became effective July 1, 1914. This law set up a State Industrial Accident Commission (SIAC), consisting of three trustees, to oversee the Industrial Accident Fund. Employers in hazardous occupations had to decide whether to be part of the fund. Contributors to the fund could not be sued; suits were brought against the commission. Noncontributors, on the other hand, had no common-law defenses, and the Employer Liability Act made them vulnerable to unlimited damages for worker injuries or illnesses. Employers in nonhazardous occupations also could contribute to the fund and get the benefits.

In 1965, the Legislature overhauled the law. Most employers came under the Workmen's Compensation Law with this change, effective Jan. 1, 1966. Two years later, all employers came under this law if they employed subject workers. Employers could buy the commission's insurance, self-insure, or insure with private companies. The SIAC was renamed Workmens' Compensation Board, and its insurance function was given to the State Compensation Department, the forerunner of the State Accident Insurance Fund (SAIF) and SAIF Corp.

The federal Occupational Safety and Health Act of 1970 gave rise to the Oregon Safe Employment Act in 1973. Its purpose was to ensure safe and healthful working conditions for every working man and woman in Oregon, to preserve our human resources, and to reduce the substantial burden - in terms of lost production, wage loss, medical expenses, disability compensation payment, and human suffering - created by occupational injury and disease.

The 1977 Legislature reshuffled workers' compensation administration and created a Workers' Compensation Department headed by a director appointed by the governor. The Workers' Compensation Board, continuing under gubernatorial appointment, supervised a Hearings Division that settled contested cases under both workers' compensation law and the Oregon Safe Employment Act.

The 1987 Legislature made substantial changes to workers' compensation law. Chapter 884, Oregon Law 1987, heavily amended and enhanced current law, and the Workers' Compensation Department became a division of the new Department of Insurance & Finance.

In 1990, based on recommendations of the Labor/Management Task Force appointed by the governor, the Legislature made substantial changes to the law in a one-day special session. The legislature enacted SB 1197 that was a comprehensive reform to the Workers' Compensation Law. Major components of the reforms included an increased focus on workplace safety, changes to the definition of compensability, and creating managed care.

The 1993 Legislative session made only minor changes to the Oregon workers' compensation system. These included HB 2282, which addressed the regulation of employee leasing companies, and HB 2285, which dealt with Oregon's 24-Hour Health Plan, a pilot project that combined group health coverage with the medical portion of workers' compensation. HB 3069 amended the public records law to restrict access to claims history information in certain circumstances when the information could be used to discriminate against injured workers.

In 1995, more significant changes to the workers' compensation system came with SB 369. The bill was designed, in part, to restate and clarify many of the 1990 reforms that had been reversed or overturned through case law. The bill addressed other provisions, and the Department of Insurance & Finance was reorganized and renamed the Department of Consumer & Business Services.

In 1997, HB 2971 revised ORS 656.262, affecting the issuance of notices of acceptance and the processing of new compensable conditions.

In 1999, the Legislature passed HB 2830, which required Oregon OSHA to revise its method for scheduling workplace inspections and notify certain employers of an increased likelihood of inspection.

The 1999 legislative session saw relatively minor changes to the Oregon workers' compensation system. However, SB 460 repealed most sunsets placed in the law by SB 369 in 1995. One exception to the sunset repeal was the exclusive-remedy provision. With limited exception, workers' compensation is the sole remedy for covered workers with injuries and illnesses that arise out of and in the course of their employment. The Legislature directed the Workers' Compensation Division to commission a study on the effects of and the costs and savings to the Oregon workers' compensation system of major-contributing cause and combined-condition provisions.

The 2001 legislative session saw the passage of another complex and comprehensive workers' compensation bill, SB 485. The law changes included those agreed upon by labor and management to correct imbalances or problems with the workers' compensation system. Issues addressed included: tort claims against an injured worker's employer; definition of pre-existing conditions and their applicability to arthritis or arthritic conditions; increased permanent partial disability rates; contributory negligence as an employer defense; reduced time during which claims may be denied or accepted; increased temporary disability benefits; supplemental disability for multiple-job workers; Workers' Compensation Board own-motion claim-reopening process and reimbursement from Workers' Benefit Fund for claim re-openings in own motion. The Management-Labor Advisory Committee was also directed to recommend an exclusive, no-fault, expeditious alternative process and remedy to the court system that addressed major-contributing-cause denials.

In 2003, the legislature made a major change to how to determine permanent partial disability (PPD) benefits. The PPD benefits changed to rate injuries to body parts in relation to the "whole person." Workers with permanent disability received an "impairment benefit" equal to the percentage of impairment multiplied by 100 times the state average weekly wage. Workers unable to return to regular work also received a work disability benefit based on the percentage of impairment, modified by age, education, and adaptability factors, multiplied by 150 times the worker's weekly wage at the time of injury. When computing the amount of the work disability benefit using the worker's weekly wage, the wage amount is confined to an amount 50 percent to 133 percent of the state average weekly wage.

The 2005 legislature addressed the process for insurer-requested independent medical examinations. The bill required insurers to select an independent medical examination provider from a department-developed list and set specific criteria in order to be on the list of qualified providers. Workers were allowed to appeal the reasonableness of an exam location and obtain an expedited review by the department. The law also provided sanctions against medical service providers who fail to provide diagnostic records in a timely manner and also imposed a monetary penalty against a worker who failed to attend an independent medical examination.

The legislature also changed the standard for establishing permanent total disability benefits, as well as for terminating or rescinding those benefits. The law set an earnings threshold to determine what constitutes "gainful" employment linked to the federal poverty guidelines. Workers could appeal the reversal of their permanent total disability benefits and maintain their benefits while the appeal progressed. The law also entitled workers to vocational assistance if their permanent total disability benefits are terminated.

In 2007, the legislature revisited several significant policy areas. They repealed the sunsets on the permanent partial disability benefits that were changed in 2003 and 2005. The legislature also made permanent the expanded role of nurse practitioners in the workers' compensation system by allowing them to provide compensable medical services to injured workers for up to 90 days, authorize time loss for up to 60 days, release the worker to work, and manage the worker's return to work in that time period.

The legislature also expanded the role of chiropractic physicians, podiatric physicians, naturopathic physicians, and physician assistants in the workers' compensation system. They allowed these providers to serve as attending physicians for up to 60 days or 18 visits, whichever comes first. In addition, the four provider groups were allowed to authorize time loss for up to 30 days and manage the worker's return to work during that period.

In 2009, based in part on a legislatively requested report from the Management-Labor Advisory Committee, the legislature improved the benefits provided to beneficiaries when a worker is killed on the job or dies while he or she is permanently and totally disabled from a work injury. It increased final disposition of the body and funeral expenses from 10 to 20 times the state average weekly wage and established the benefit as a set amount. It also made other technical changes to improve the benefit delivery process, clarify benefits paid when a worker dies before his or her full permanent partial disability award is paid, and created a new level of benefits for children who have no surviving parents.

In 2011, the legislature made podiatrists full attending physicians, allowing them to treat an injured worker without time or visit restrictions. The legislature made changes to how certain medical payments can be made under a disputed claim settlement.

The legislature also authorized the department to take administrative action against a person or company that is actively managing the care of workers when that person or company is not certified as a managed care organization. The department will be able to address these violations by imposing civil penalties and issuing cease-and-desist orders.