And while you are considering taking this guy to court (small claims or otherwise), be sure to reference the following Oregon statute:
"652.610 Itemized statement of amounts and purposes of deductions required.
(3) No employer may withhold, deduct or divert any portion of an employee’s wages unless:
(a) The employer is required to do so by law;
(b) The deductions are authorized in writing by the employee, are for the employee’s benefit, and are recorded in the employer’s books;
(c) The employee has voluntarily signed an authorization for a deduction for any other item, provided that the ultimate recipient of the money withheld is not the employer, and that such deduction is recorded in the employer’s books;
(d) The deduction is authorized by a collective bargaining agreement to which the employer is a party;
(e) The deduction is authorized under ORS 18.736; or
(f) The deduction is made from the payment of wages upon termination of employment and is authorized pursuant to a written agreement between the employee and employer for the repayment of a loan made to the employee by the employer, if all of the following conditions are met:
(A) The employee has voluntarily signed the agreement;
(B) The loan was paid to the employee in cash or other medium permitted by ORS 652.110;
(C) The loan was made solely for the employee’s benefit and was not used, either directly or indirectly, for any purpose required by the employer or connected with the employee’s employment with the employer;
(D) The amount of the deduction at termination of employment does not exceed the amount permitted to be garnished under ORS 18.385; and
(E) The deduction is recorded in the employer’s books."
Source:
http://www.leg.state.or.us/ors/652.html