Judge may decide whether Oregon’s process for clawing back unemployment benefits is unconstitutional

A four-story, white office building with a green lawn in front.

The Oregon Employment Department's office in Salem.Mike Rogoway/The Oregonian

An Oregon judge will hear arguments Thursday that the state has been acting unconstitutionally when trying to claw back unemployment benefits from more than 60,000 people since 2020.

A lawsuit filed last year argues that the Oregon Employment Department has a convoluted and chaotic process for notifying people when the agency believes it has paid them too much. Many faced claims that they owed the state thousands of dollars. In some cases, the state sought $10,000 or more from people who reported losing their jobs during the pandemic.

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