Yesterday, the House passed a bill aimed at reducing wage theft in Oregon’s construction industry. Under SB 426, construction workers will now be able to more effectively recover wages they are owed from project owners or general contractors.
“This bill tackles the root cause of wage theft in the construction industry and strengthens protections for the hard-working people who help build our state’s communities. Every Oregonian who works an honest day’s labor deserves to receive their hard-earned wages,” said Representative Lisa Fragala (D-Eugene).
The new legislation allows construction workers to file a lawsuit to recover the wages they are owed for their work. By strengthening these worker protections, the bill also encourages better vetting of subcontractors and proactive prevention of wage theft. Owners and general contractors will be incentivized to ensure that workers on their projects get paid.
“In the middle of a slowing economy, when working families are already struggling with the rising cost of food, housing, and healthcare, the last thing they should worry about is getting cheated out of their wages,” said Representative Andrea Valderrama (D-Outer East Portland). “Wage theft is theft — plain and simple — and it disproportionately harms Latino, immigrant, and low-wage workers in the construction industry, already under economic strain. In a year when Oregon is facing job losses, manufacturing layoffs, and economic uncertainty driven by federal instability, we must lead with policies that protect the people who are building our state, addressing our housing and homelessness crises.”
Currently, workers who experience wage theft can file a complaint with the Bureau of Labor and Industries, but the bureau has a significant backlog of claims and is limiting the investigations it undertakes. Senate Bill 426 provides workers a new course of action to recover wages and hold bad actors accountable. It does not apply to homeowners constructing or remodeling their primary residence.
“When workers are not paid, it means they cannot pay their rent, feed their families, and pay their medical bills,” said Rep. Lesly Muñoz (D-Woodburn). “Today, we take a powerful step forward to address wage theft which has hurt our working families for too long. This bill creates a fair construction industry where workers are paid for their labor and an industry where responsible contractors are not undercut by bad actors.”
SB 426 passed the Oregon House with a vote of 31 to 26. The bill now returns to the Senate for concurrence.
