In 2025, the Oregon State Legislature passed HB 2688, which expanded Oregon’s prevailing wage rate requirements to satellite locations, where bespoke systems and components are fabricated, assembled, or constructed. This amendment to Oregon’s prevailing wage laws, now Chapter 612, went into effect on July 1, 2026, and has a huge impact on companies working on government-funded projects.
BOLI published a Notice of Proposed Rulemaking on May 1, 2026, regarding the implementation of Chapter 612, which contains the Statement of Need and Fiscal Impact of the new law. On June 12, 2026, the Bureau of Labor and Industries (“BOLI”) filed a Permanent Administrative Order implementing Chapter 612 and clarifying application of the changes to the prevailing wage rate law.
What is bespoke work?
Historically, prevailing wage rates were paid for work performed on or near the construction job site for public work contracts. With the change in the law, prevailing wage rate applies to “fabrication, assembly, preconstruction or construction that is: bespoke, performed offsite, performed specifically for, and in accordance with the specifications of, a particular project of a type listed [in this law], and performed on any [listed systems or components].” The types of systems or components that are included in that list include: mechanical systems, such as heating, ventilation, air conditioning, refrigeration and other ducting or piping system or components; plumbing systems or components; electrical systems or components of certain electrical systems regulated by state law and the Electrical and Elevator Board; boiler systems or components of boiler systems; ornamental and structural iron work; masonry and plaster systems or components; roofing, flashing and architectural panel system or components other than glazing systems and components; and
mechanical insulation.
What contracts are covered?
We are already seeing considerable debate about when and to what jobs the rules apply, depending on when the job was solicited, when subcontractors are engaged, and more factors. Generally, the law became effective July 1, 2026, so should apply to public works contracts entered into on or after that date. BOLI’s prevailing wage rate books began listing the bespoke work rules in its September 3, 2026 wage rate book, creating additional wrinkles in what rates apply and when for some contractors.
Which rules have been adopted?
OAR 839-025-0800 Satellite Locations: This adopts a rule applicable to satellite locations, an affirmative defense and implements Chapter 612.
Which rules are proposed for amendment?
OAR 839-025-0004 Definitions Generally: This is an amendment to adopt and modify definitions implementing Chapter 612 and determining the applicability of prevailing wage under ORS Chapter 279C and OAR Chapter 839. This includes definitions of “assembly, bespoke, contractor, fabrication, locality, public works, public works contract, satellite location, site of work
and subcontractor.”
OAR 839-025-0013 Notice of Public Works Form: Provides an amendment to the rule allowing public agencies to require third parties to provide notice of public works to BOLI for projects described in ORS 279C.800(6)(a) and
clarifies deadlines.
OAR 839-025-0020 Public Works Contracts and Contract Specifications — Required Conditions: This proposed rule requires public agencies to include in their public works contracts a list of work performed on systems or components described in ORS 279C.800(6)(a)(G)(iv) and includes a requirement that contractors and subcontractors provide notice of work that could reasonably be performed off site.
OAR 839-025-0025 Required Records: Makes contractors and subcontractors who perform work on public works projects to keep records of the names of all journey workers engaged in the supervision of apprentices and records that distinguish supervising journey workers from other employees.
OAR 839-025-0033 Posting Requirements: Proposes to clarify prevailing wage rate posting requirement at satellite locations.
OAR 839-025-0035 Payment of Prevailing Rate of Wage: Amends the rule to clarify application of prevailing wage to delivery drivers and to remove gendered language.
OAR 839-025-0038 Use of Multiple Wage Rate Determinations on Projects: Amends the rule to clarify application of posting requirement at satellite locations.
OAR 839-025-0200 Fees to Be Paid by Public Agency: Amends the rule to allow public agencies to require a third party to pay the public works fee to BOLI for certain projects described in ORS 279C.800(6)(a).
Contractors who have jobs subject to prevailing wage rate requirements should ensure they are familiar with the changes to the law and how it may require prevailing wage rate to be paid for bespoke work performed offsite. Further, there are additional notice and reporting protocols given this new type of prevailing wage rate work.
For questions regarding compliance with HB 2688 and offsite bespoke work prevailing wage rates, contact Barran Liebman LLP partner Nicole Elgin at
nelgin@barran.com.
