Published: November 3, 2023

Update: December 17th, 2025

 Your Workday settlement check is on the way

After years of workers organizing, bargaining, and fighting —the Workday lawsuit settlement is now being paid out. Many of you have questions, so here are some important details:

  • Checks were mailed December 8, so if yours hasn’t arrived yet, it should soon.
  • Most checks are for $198.52. Some checks will be more or less depending on if you submitted a claim for hardship or out-of-pocket expenses.
  • Make sure to cash your checks on time! *Any amounts not claimed by Members (within 90 days of disbursement) will revert to 50% to Legal Aid Services of Oregon and 50% to the following organizations in equal amounts: Jobs with Justice, Kids’ Chance Oregon, Northwest Workers’ Justice Project, Oregon Center for Public Policy, Oregon Futures Lab Fund, and Voz Workers’ Rights Education Project.*

If you have additional questions please check here:

FAQ: https://oregonworkdaysettlement.com/ 
Questions or no check? Call the settlement administrator: (800) 436-8897

Update: August 8th, 2025

Workday Lawsuit is Settled, Submit Your Claims Now

It’s official, the settlement with the State of Oregon regarding the Workday payroll lawsuit has been finalized. SEIU Local 503 and Oregon AFSCME have both approved the settlement and it will now proceed. SEIU member leader and Department of Justice sublocal president Renae Bracken has created two template letters you can use to move forward with receiving or declining your claim. The deadline to submit your claims is August 25th.  This is a big step in holding the State of Oregon accountable. Additionally, the bargaining team won contract language in the TA that limits the State from recouping overpayments that are over 364 days old and provides access to repayment plans for all workers no matter how an overpayment was created. This will help prevent future harm for workers. The settlement templates are below: 

 

Update: March 25, 2025

Workday Update

This is a joint statement from Oregon AFSCME and SEIU 503.

For the last two years, there has been an active lawsuit against the State of Oregon over massive payroll errors that occurred during its rollout of the Workday payroll system. This lawsuit has finally reached settlement.

Because this is a class action lawsuit representing all state workers, SEIU 503 and Oregon AFSCME do not determine the outcome; we are working closely with lawyers every step of the way and are sharing what we know thus far about the settlement.

The State of Oregon settled a class action lawsuit over wage errors caused by the Workday Payroll system. The settlement applies to anyone employed by the state on or after December 1, 2022. A settlement fund of fifteen million dollars ($15,000,000) will be distributed on or after August 1, 2025 as follows:

  • Up to $500 for anyone who claims “out-of-pocket” costs caused by Workday wage errors (bank fees, missed payment fees, credit card or loan interest) AND
  • Up to $2,500 for anyone who claims “significant hardship” caused by Workday wage errors (loss of housing, loss of vehicle, life-altering event). The process to make a claim is still being determined.
  • Direct payments of at least $100 minimum for all non-exempt (non-salaried) employees
  • Direct payments of at least $12.50 minimum for all non-exempt employees terminated on or after December 1, 2022.
  • Direct payments could be greater than the minimum amount. It’ll depend on what’s left in the settlement fund after out-of-pocket and hardship claims are paid.  All current non-exempt employees, as well as non-exempt employees terminated on or after December 1, 2022 will receive direct payments in equal amounts.  .
  • Direct payments up to $200 are not subject to payroll withholdings, but direct payments over $200 are. Payments for out-of-pocket or hardship costs may be subject to withholdings.
  • System-based overpayments shall be waived (this does not include overpayments as a result of human error).
  • You may opt out of this settlement. If you don’t opt out, you waive: (1) any claims against the state relating to Workday wage errors occurring prior to August 1, 2025; and (2) future claims for similar wage errors occurring on or before July 1, 2027.
  • This settlement is contingent upon court approval, legislative funding, and labor organization agreements regarding Workday-related grievances.
  • You will receive a “class notice” via US mail. It will specify a deadline by which out-of-pocket and hardship claims must be made via sworn declaration.

We know this settlement is not nearly enough. While it is a significant step toward holding the state accountable for implementing a payroll system that was clearly not ready, it does not fully compensate for the hardships workers have endured. This settlement sends a clear message: the state’s reckless implementation of critical programs—especially payroll—comes at a cost.



And you deserve more.



We will continue to fight for workers to have a voice at the table when new programs are introduced that can have a negative impact on workers if not done correctly, ensuring this kind of failure never recurs. Additionally, we are actively negotiating settlements for grievances filed during the payroll transition. This process marks the next step toward a comprehensive resolution.



Your bargaining teams will continue the bargaining process around payroll issues over the coming months. Keep an eye out for payroll/Workday surveys as we bargain with the state.

Additionally, we introduced a bill this legislative cycle to shorten the lookback period for overpayments and will keep you updated on its progress.

In Solidarity,

Oregon AFSCME and SEIU 503

Update: October 23rd, 2024

10/17/24 – Click here to read our latest update about the Workday grievances and lawsuit!Now, we’re asking you to share your story on this form, so the state can fully understand how Workday has affected state workers.If you have issues with Workday and need assistance, please take these steps: 

  1. Reach out to your agency’s payroll office and get in the queue for support. Be sure to highlight any errors to them, as they are the people who can help make necessary corrections and answer your questions best.
  2. Talk to a steward or SEIU’s Contract Enforcement Team (CET). Many workday issues are known, and a Steward or member of the CET can help determine the best next steps, including filing a grievance. You can contact the CET at 1-844-503-SEIU (7348) or contact@seiu503.org. 
  3. Fill out this survey. Workers who have issues with their payroll should take the steps in this survey. If you haven’t reached the CET, note that on the survey and someone will be in touch with you.
  4. If you were monetarily harmed by late or delayed payment due to a payroll error, you can request to be reimbursed by your agency by submitting a Penalty fee reimbursement request form. (Read the instructions here)
  5. If your credit has been impacted, use this template to write a No-Fault Letter to send to your creditor.

Tax Resources:

We expect that the state made a number of errors when withholding taxes throughout this year and that could have an impact on your tax return when you file. Because of this, we are encouraging workers to file their taxes early so that there is as much time as possible to address issues and prepare. We also want to highlight a number of resources that are available for workers and Union members:
  1. Access reduced cost legal insurance through ARAG: ARAG has a nationwide network of attorneys that can support members on a number of topics including taxes. Members can add ARAG legal insurance for a reduced price. This is only available to members of the Union that have enrolled in ARAG during open enrollment.
  2. Canopy, Employee Assistance Program: The collective Bargaining Agreement requires the State provides an employee assistance program (EAP). Canopy, the State’s EAP, offers tools including interactive tax calculators and financial planning, which State employees have access to for free.
  3. Tax calculators have been made available to estimate the correct amount of taxes that should be withheld so that you can confirm that your W-2 is accurate.(Oregon State taxes calculator and IRS calculator)
  4. Tax Filing Support: Free and low-cost tax preparation help is available to qualifying workers. The department of revenue has a webpage with resources.

Additional Tax Resources:

Workday Grievances Update: 
Our Union filed 6 statewide grievances around the issues created by the Workday transition. In March of last year, the State acknowledged they violated the CBA and since then have implemented a number of changes to the Workday system, though have not fixed all the issues. They also have implemented these steps to better support workers:
  • Agreed to reimburse workers for any late or overdraft fees accrued because of Workday payroll issues.  
  • Agreed to reimburse workers up to $100 that seek services from a tax professional through 2023
  • Agreed to audit the Workday payroll system
  • Agreed not to discipline workers on payroll time entry mistakes during the transition (through September of 2023).  
  • Agreed to make “no fault” letters available for workers to share if their credit was impacted by the Workday transition.  
  • Agreed to implement additional training for staff and management, though we are worried this is still not sufficient.”
We agreed those were great next steps, but that they needed to do more. Currently we are working with DAS and DOJ to get our Arbitration hearing set up (currently DOJ is trying to schedule individual hearings for each grievance rather than one hearing). We also continue to push the state to settle these grievances and believe that is the best next step to address the issue. Here is what we have proposed to the state in settlement discussions.
 
The best way you can support this this work to make this settlement happen is by sharing your story.
Lawsuit update: As is common for legal procedures, the lawsuit is progressing, albeit slowly. Our lawyers are working hard to address all Workday transition issues raised but need significant data from the State before proceeding. Depositions are scheduled, and the state is providing some of the data needed to move the case along. Our attorneys are filing motions as needed to get the state to comply with requests for additional information.