Key Takeaways
Impacted Employers: Oregon Employers
Effective Date: Jan. 1, 2027
Summary: Oregon has expanded the definition of theft of services and strengthened penalties for direct contractors and subcontractors who knowingly contract with construction labor contractors who are not properly licensed.
Next Steps: Oregon employers should review the changes under the law.
The Details
Oregon has enacted legislation (House Bill 4089) that expands the definition of theft of services and strengthens licensing requirements for construction contractors. House Bill 4089 is effective Jan. 1, 2027.
Wage Theft Prevention
As background, Oregon protects workers against the theft of services. House Bill 4089 clarifies that a person commits the crime of theft of services when they try to avoid full or partial payments for the services.
The law also states that a network of Oregon agencies will develop methods to collect and share information about individuals whose actions may constitute theft of services and who do not comply with taxation or employment laws.
Construction License Penalties
As background, Oregon law requires construction labor contracts to meet certain licensing requirements.
House Bill 4089 sets penalties when a direct contractor or subcontractor knowingly enters into a contract with a construction labor contractor who is required to be licensed but is not properly licensed. See the text of the law for further details.
Next Steps
Oregon employers should review the changes under the law by Jan. 1, 2027.