HB  4089 – Expands crime of “theft of services” to include non or underpayment of wages/compensation owed to employees and independent contractors, including improper deductions.

Risk of over criminalization (blurs lines between intentional theft and accidental payroll errors or good faith disputes (meals/breaks that employees voluntarily skip). Some actions would be considered Class B Felony with large fines and imprisonment. Vague and unclear language could lead to prosecution of minor issues. Disproportionate impact on small business, agriculture, restaurants, construction.

The Amended bill changes the crime of theft of services and changes some crimes related to contractor licenses.

• Modifies the crime of theft of services to include partial payments.
• Provides that a prosecution for theft of services does not preclude other forms of relief.
• Directs the Interagency Compliance Network to develop investigative methods concerning persons who may be committing theft of services and not complying with taxation and employment laws.
• Punishes knowingly entering into a contract with an unlicensed labor contractor, if committed by a direct contractor or subcontractor, by a maximum of 364 days’ imprisonment, $6,250 fine, or both. Punishes a second or subsequent conviction by a maximum of five years’ imprisonment, $125,000 fine, or both.
• Increases the penalty for the intentional use of a contractor’s license number without authorization. Punishes by a maximum of five years’ imprisonment, $125,000 fine, or both.
• Increases the penalty for the use of a contractor’s license number with the intent to deceive the public. Punishes by a maximum of five years’ imprisonment, $125,000 fine, or both. 

This is premature and needs to let the 2025, SB 426, changes play out to determine what if further restrictions are needed. This proposal will make Oregon even more unfriendly and keep businesses from coming to Oregon.