SB 426 Property owner made responsible for unpaid wages

02/27/2025
SB 426 VOTE: NO
In Committee
Public Hearing 02/26/2025 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?

Oregon State government is in the top five biggest spending state governments in
America as measured by spending/per-capita. The last Oregon budget grew by over
20%. Where is the money going? Why are crime victims put at the bottom of the list and why are they making property owners their scape goat?

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.

SUBMIT TESTIMONEY HERE BY FEBRUARY 28

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

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