If you were injured at work in Oregon and returned to a lower-paying job while still recovering, you may be entitled to temporary partial disability (TPD) benefits — and the rules governing how those benefits are calculated changed significantly on January 1, 2026. Oregon House Bill 2802 updated two key administrative rules — OAR 436-060-0025 and OAR 436-060-0030 — resolving longstanding confusion about which post-injury wages count against your TPD compensation. This guide breaks down exactly what changed, how the new Oregon HB 2802 temporary partial disability wage calculation works, and what it means for your paycheck.
What Is Temporary Partial Disability in Oregon?
Temporary partial disability benefits compensate workers who are injured on the job and return to work in a limited capacity at reduced earnings while still recovering. Under Oregon Labor Code Section 656.206, TPD benefits equal two-thirds of the difference between your pre-injury average weekly wage and your post-injury earnings — commonly called the “wage differential.” The purpose is straightforward: if your injury forces you into lighter-duty work that pays less, the workers’ compensation system partially replaces that lost income during your recovery period.
Before HB 2802 took effect, Oregon’s rules used imprecise language that created real problems for injured workers with multiple jobs or unusual work arrangements. The phrase “wages from any kind of work” was interpreted inconsistently by insurers, leaving some workers shortchanged on benefits they legally deserved. The Oregon Workers’ Compensation Division (WCD) published final implementation guidance in February 2026 to clarify how the updated rules apply.
What Oregon HB 2802 Actually Changed
The Old Language Problem: “Any Kind of Work”
Under the prior version of OAR 436-060-0025, post-injury wages were described as earnings from “any kind of work.” In practice, some insurers interpreted this broadly to offset TPD benefits with virtually any income an injured worker received after their injury — including wages from a second job that had nothing to do with their primary employment and that they had held before the injury. This interpretation was problematic because it penalized workers for having secondary employment that was entirely unaffected by their workplace injury.
For example, if a construction worker who also waited tables on weekends suffered a back injury on the construction site, some insurers would count all restaurant wages against the TPD calculation — even though the worker held that second job before the injury occurred. The result was an artificially deflated benefit that did not accurately reflect the actual wage loss caused by the injury.
The New Rule: OAR 436-060-0025 and OAR 436-060-0030 Explained
The updated OAR 436-060-0030(1), effective January 1, 2026, now specifies that the insurer must offset TPD benefits against post-injury wages from any source, but with a critical clarification: secondary employer wages only count to the extent they exceed pre-injury secondary wages. This is the heart of the Oregon HB 2802 temporary partial disability wage calculation reform. The rule eliminates the “any kind of work” limitation and replaces it with a source-specific framework that treats primary and secondary employment income differently depending on whether those earnings actually changed because of the injury.
Meanwhile, OAR 436-060-0025 was updated to define post-injury wages in a way that aligns with this source-specific approach, ensuring that the baseline comparison is made correctly for workers with multiple income streams. Workers who continue earning the same amount at a secondary job as they did before their injury will not have those unchanged wages counted against their TPD benefits under the new framework.
Side-by-Side Examples: Old vs. New Wage Calculation
Example Scenario: Construction Worker with a Second Job
Consider a worker — call him Marcus — who works as a journeyman electrician earning $1,400 per week at his primary job. He also works weekend shifts as a restaurant server, earning $300 per week before his injury. Marcus suffers a shoulder injury at the construction site and is placed on modified duty, earning only $700 per week at his primary employer. His server job is unaffected — he still earns $300 per week on weekends.
| Calculation Element | Old Rule (Pre-2026) | New Rule (OAR 436-060-0030, 2026) |
|---|---|---|
| Pre-Injury Primary Wages | $1,400/week | $1,400/week |
| Pre-Injury Secondary Wages | $300/week | $300/week |
| Total Pre-Injury Weekly Wages | $1,700/week | $1,700/week |
| Post-Injury Primary Wages (modified duty) | $700/week | $700/week |
| Post-Injury Secondary Wages (unchanged) | $300/week (counted in full) | $0 (no increase, not counted) |
| Total Post-Injury Wages for Offset | $1,000/week | $700/week |
| Wage Differential (lost earnings) | $700/week | $1,000/week |
| TPD Benefit (2/3 of differential) | $466.67/week | $666.67/week |
Under the old methodology, Marcus would have received approximately $467 per week in TPD benefits. Under the 2026 Oregon HB 2802 temporary partial disability wage calculation, he receives approximately $667 per week — a difference of $200 per week, or roughly $800 more per month during his recovery period. This example illustrates precisely why the legislative reform matters for real workers.
Example Scenario: Worker Who Gets a Higher-Paying Second Job After Injury
Now consider a different worker — Priya — who had no secondary employment before her injury. After a knee injury at her warehouse job, she takes an evening phone-based customer service job earning $250 per week while on modified duty at her primary employer. Under the updated OAR 436-060-0030, those new earnings do count as a full offset because her pre-injury secondary wages were zero, so any amount above zero represents an increase. The Oregon HB 2802 temporary partial disability wage calculation is designed to prevent windfalls, not to ignore income that genuinely reduces a worker’s economic loss.
How Insurers Must Apply the New Offset Rules
Under OAR 436-060-0030(1) as updated by HB 2802, the insurer’s obligation is clear: calculate the offset using post-injury wages from any income source, but apply the secondary wage threshold before computing the differential. In practical terms, the insurer must now gather documentation of a worker’s pre-injury earnings from all employers — not just the employer where the injury occurred. This means injured workers have a stronger reason than ever to document all pre-injury employment when filing a workers’ compensation claim.
According to the Bureau of Labor Statistics Occupational Injury and Illness data, Oregon workers in construction, manufacturing, and transportation account for a disproportionate share of workplace injury claims — many of whom hold supplemental employment. The new rules directly benefit this population. Workers in these industries should request written confirmation from their insurer of exactly which wages are being used in the TPD offset calculation.
TPD Benefit Calculator: Estimate Your Benefits Under Both Methods
How to Use This Framework to Estimate Your Own Benefit
You can estimate your TPD benefit using the following step-by-step process under the 2026 rules. This is an educational framework — your actual benefit amount will depend on your specific claim details and insurer’s calculations.
- Step 1 — Establish pre-injury wages: Add your average weekly wages from your primary employer and any secondary employers for the 52 weeks before your injury. Document each source separately.
- Step 2 — Establish post-injury wages from primary employer: Record your actual weekly earnings on modified duty or at a new lower-paying primary job.
- Step 3 — Calculate secondary wage change: Subtract your pre-injury secondary wages from your post-injury secondary wages. If the result is zero or negative, secondary wages do not reduce your TPD benefit. If positive, add that excess to your post-injury total.
- Step 4 — Compute the wage differential: Subtract your adjusted post-injury total (Step 2 + excess from Step 3) from your pre-injury total (Step 1).
- Step 5 — Apply the two-thirds formula: Multiply the wage differential by 0.6667. The result is your estimated weekly TPD benefit.
For workers dealing with more complex injury situations — including traumatic brain injuries from workplace accidents — you may also want to use a brain injury calculator to understand the broader economic impact of your injury beyond TPD wage replacement alone.
Quick Reference: TPD Calculation Under Oregon HB 2802 (2026)
| Your Situation | Secondary Wage Impact on TPD Offset | Result |
|---|---|---|
| Secondary wages unchanged after injury | Not counted in offset | Higher TPD benefit |
| Secondary wages increased after injury | Excess above pre-injury amount is counted | Partial offset applied |
| No pre-injury secondary employment; new second job taken | Full secondary wages counted in offset | Full offset applied to secondary earnings |
| Secondary wages decreased after injury | Reduction not counted — no negative offset | No adjustment; benefit reflects primary wage loss |
What Workers Should Do Right Now
If your TPD benefits were calculated at any point after January 1, 2026, and you held secondary employment before your injury, you should review the insurer’s offset calculation carefully. The Oregon HB 2802 temporary partial disability wage calculation changes apply to all open claims subject to the updated OAR 436-060-0025 and OAR 436-060-0030 — not just new claims filed after the effective date. Workers who believe their benefits were calculated using the old methodology may have grounds to request recalculation through the Oregon Workers’ Compensation Division.
The WCD’s February 2026 final guidance document provides the controlling interpretation of how the new rules interact with pre-existing claims. You can review the Oregon administrative rules framework through the Oregon Secretary of State’s Administrative Rules database, which maintains the current text of OAR 436-060-0025 and OAR 436-060-0030 as amended.
Workers dealing with general economic damages calculations outside of Oregon’s specific TPD framework may also find it useful to explore a personal injury settlement calculator to understand how wage loss factors into broader injury compensation across different claim types.
Common Errors Insurers Make Under the New Rules
Since the Oregon HB 2802 temporary partial disability wage calculation rules are new in 2026, some insurers are still making calculation errors. The most common mistakes include: applying the old “any kind of work” total-wage offset to secondary employers without adjusting for pre-injury secondary earnings; failing to separately document primary and secondary pre-injury wages in the claim file; and incorrectly treating gig economy income, freelance work, or irregular secondary income without establishing a clear pre-injury baseline. If you notice your insurer has lumped all post-injury earnings together without distinguishing income sources, that is a red flag worth investigating.
Oregon’s workers’ compensation system processes thousands of TPD claims annually. According to Nolo’s overview of Oregon workers’ compensation, Oregon uses a wage replacement structure that is more administratively detailed than many other states — which means errors are both more common and more consequential for affected workers. Documenting the insurer’s stated calculation methodology in writing is an important protective step.
Frequently Asked Questions About Oregon HB 2802 TPD Changes
Does the Oregon HB 2802 temporary partial disability wage calculation change apply to injuries that happened before January 1, 2026?
The updated OAR 436-060-0025 and OAR 436-060-0030 took effect January 1, 2026, and apply to TPD benefit calculations made on or after that date. For workers with injuries that occurred before 2026 but whose claims remain open and active in 2026, the new wage calculation methodology generally applies to ongoing TPD benefit determinations. Workers should review their insurer’s current offset calculation to confirm the updated rules are being used.
My secondary employer wages stayed exactly the same after my injury. Will they still reduce my TPD benefit?
No. Under the 2026 rules established by OAR 436-060-0030(1), secondary employer wages only count as an offset to the extent they exceed your pre-injury secondary wages. If your secondary earnings are identical to what you earned before the injury, the difference is zero, and those wages do not reduce your TPD benefit calculation. This is one of the most significant practical improvements introduced by Oregon HB 2802.
What documentation do I need to establish my pre-injury secondary wages?
You should gather pay stubs, tax records (such as W-2s or 1099s from prior years), bank statements showing direct deposits, or a written statement from your secondary employer confirming your pre-injury hours and pay rate. The insurer needs a reliable pre-injury baseline for secondary earnings to properly apply the offset threshold under OAR 436-060-0025. The more documentation you can provide, the less room there is for the insurer to overestimate your post-injury wage change.
What happens if I start a new secondary job after my injury that I didn’t have before?
If you had no secondary employment before your injury and take a new second job during your recovery, the wages from that new job count in full as a post-injury wage offset under the updated Oregon HB 2802 temporary partial disability wage calculation rules. Because your pre-injury secondary wages were zero, any amount you earn at a new secondary employer represents an increase above that baseline — and that full increase is counted when calculating the wage differential that determines your TPD benefit.
How do I dispute an insurer’s TPD calculation if I think it’s wrong under the 2026 rules?
You can request a written explanation of the insurer’s wage calculation from the claims adjuster, including which wages were used as the post-injury offset. If the insurer’s calculation does not appear to match OAR 436-060-0030 as updated by HB 2802, you can file a dispute through the Oregon Workers’ Compensation Division’s Hearings Division. The WCD’s February 2026 final guidance document is the controlling interpretive authority for how the updated rules apply, and you can reference it directly in your dispute documentation.
This article is for educational purposes only and does not constitute legal advice; consult a licensed Oregon workers’ compensation attorney for guidance specific to your claim.
David Prescott is a Workers Rights and Injury Specialist with extensive knowledge of personal injury law and settlement values across the United States. With years of experience analyzing workplace injury claims only cases, David helps injury victims understand their legal rights and the potential value of their claims. David is not an attorney and the information provided is for educational purposes only.