SB 426 Oregon Senate · 2025 Regular Session

Relating to wages.

Summary

Makes an owner and a direct contractor jointly and severally liable in a civil action for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractors at any tier. Provides the statute of limitations for actions regarding recovery for unpaid wages. Specifies that the joint and several liability provisions for unpaid wages do not apply to construction work relating to real property that is used as the owner's principal residence or real property with five or fewer residential or commercial units on a single tract. Clarifies that the Attorney General may accept the assignment of claims and bring civil actions in the name of the State of Oregon on such claims. Permits the Attorney General to adopt rules regarding the assignment of claims. Requires notice to be sent by certified mail that informs the owner and the direct contractor of the alleged violation and specifies the time period within which the owner and the direct contractor may correct the alleged violation. Creates a rebuttable presumption that, in any action for unpaid wages, the person performing labor on a construction project is an employee. Provides that the party claiming otherwise may rebut the presumption by establishing that the person qualifies as an independent contractor. Provides that an owner may bring an action against a direct contractor to recover damages for amounts paid by the owner. Requires subcontractors to provide certain payroll records and other information to the owner or the direct contractor, upon request. Provides that subcontractors shall provide certain payroll records to an authorized third party representative in certain circumstances. Permits the owner and the direct contractor to withhold payment to a subcontractor in certain circumstances. Clarifies that the owner or direct contractor may withhold payment in an amount and to the extent that the owner or direct contractor paid, on behalf of the subcontractor, wages owed to the subcontractor's employees.

Issues: ✓ Labor & Employment

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

May 2025

Senate Passage

May 2025

House Passage

Jun 2025

Signed into Law

Jun 2025

Introduced Jan 13, 2025 Signed Jun 9, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

B-Engrossed → Enrolled · 4 edits · Jun 9, 2025

MODERATE

The bill was finalized in its Enrolled version, adding new definitions for construction contracts and owners, clarifying who is considered an owner (including exemptions for public agencies and certain financial institutions), and specifying that civil actions for unpaid wages cannot be initiated until after a 21-day correction period. The Attorney General's role in handling wage claims was also clarified with rule-making authority.

Scope change

The bill's scope was expanded to include excavation and land development work under construction contracts, and owner exemptions were added for public agencies and financial institutions that only perform preservation work.

DEFINITION

Added new definitions for 'construction contract' to include excavation and land development, 'construction trade labor organization', 'direct contractor', 'fringe benefit contributions', 'labor organization', 'owner' with detailed inclusions and exclusions, 'subcontractor', 'unrepresented employee', and clarified the 21-day correction period for alleged violations.

ENFORCEMENT

Clarified the Attorney General's authority to accept wage claims, bring civil actions, and adopt implementing rules.

REQUIREMENT

Added specific requirements that civil actions cannot be initiated until after the 21-day correction period expires and cannot be brought against an owner or direct contractor if they corrected the violation within that period.

TECHNICAL

Removed the editor's summary statement and formatting notes that were present in the B-Engrossed version.

Floor votes · House May 28, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 9, 2025

Signed into law

Governor signed.

upper

Jun 2, 2025

Lower · Passed

Speaker signed.

lower

May 30, 2025

Upper · Passed

President signed.

upper

May 29, 2025

Upper · Passed

Senate concurred in House amendments and repassed bill.

upper

May 28, 2025

Introduced

Vote explanation(s) filed by Isadore, Watanabe.

lower

May 28, 2025

Lower · Passed

Passed.

lower

May 24, 2025

Lower · Passed

Recommendation: Do pass with different amendments and be printed B-Engrossed.

lower

May 24, 2025

Lower · Passed

Recommendation: Do pass with amendments and be printed B-Engrossed.

lower

Apr 15, 2025

Committee

Referred to Labor and Workplace Standards.

lower

Apr 10, 2025

Introduced

First reading. Referred to Speaker's desk.

lower

Apr 9, 2025

Upper · Passed

Third reading. Carried by Prozanski. Passed.

upper

Apr 2, 2025

Upper · Passed

Recommendation: Do pass with amendments. (Printed A-Eng.)

upper

Jan 17, 2025

Committee

Referred to Judiciary.

upper

Jan 13, 2025

Introduced

Introduction and first reading. Referred to President's desk.

upper

4 primary · 17 co-sponsors