SB 426 Property owner made responsible for unpaid wages

02/27/2025
SB 426 VOTE: NO
EMAIL ACTION
Work Session 03/26/2025 3:00pm   HR E
Status (overview) of bill: https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB426
Committee assigned to bill: https://olis.oregonlegislature.gov/liz/2025R1/Committees/SJUD/Overview

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 and overtime wages. Requires subcontractors to provide certain payroll records and other information to the owner or the direct contractor, upon request. Permits the owner and the direct contractor to withhold payment to a subcontractor in certain circumstances.

SB 426 may say it is severally liable, but it makes the property owner as the direct contractor  liable for when contractors they hire do not properly pay their employees, even though the landowner paid in full for the project. That is not severally liable and it doesn’t make the constructing industry accountable for their laborers’ wages.

The Official Staff Measure Summary says this bill is needed because ” BOLI has a
significant backlog for wage claims” and cannot help victimized workers. “Cannot”? Isn’t protecting workers  BOLI’s priority?

Property owners are making the biggest financial decision of their life and are extremely
vulnerable. They are already a victim if their home is forced to stop construction due to
a serious unpaid wage problem that the landowner has no connection to.

-10 Amendment: property owner is limited to when the contract with more than one contactor or subcontractor, which makes them a part of the contracting team, exempts owners primary residence from suit, reduces 6 years to 2 years to file a suit

YES ON -10 AMENDMENT

EMAIL COMMITTEE

Sen.FloydProzanski@oregonlegislature.gov
Sen.KimThatcher@oregonlegislature.gov
Sen.AnthonyBroadman@oregonlegislature.gov
Sen.SaraGelserBlouin@oregonlegislature.gov
Sen.FredGirod@oregonlegislature.gov
Sen.JamesManningJr@oregonlegislature.gov
Sen.MikeMcLane@oregonlegislature.gov

EMAIL ALL LEGISLATORS

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