Oregon House Bill HB2254

Oregon 2025 Regular Session

• Introduced: 1/13/25
• Refer: 1/17/25

Caption

Relating to wages.

Summary

HB 2254 creates a new wage-enforcement framework for construction projects in Oregon. It makes an owner and the direct contractor jointly and severally liable in civil actions for unpaid wages, including fringe benefits, penalty wages, interest, damages, attorney fees, and costs owed to unrepresented employees of the direct contractor and subcontractors at any tier. The bill defines key terms such as owner, direct contractor, subcontractor, construction contract, and unrepresented employee, and it excludes public agencies and workers already covered by certain collective bargaining agreements with binding grievance and wage-recovery procedures. The bill also authorizes an unrepresented employee, an authorized third-party representative, or the Attorney General to sue to recover unpaid wages and overtime wages, subject to a six-year limitations period. Before suing an owner or direct contractor, the claimant must provide notice describing the alleged violation, but that notice does not limit liability or prevent later amendment of the complaint. The bill invalidates any agreement that waives, releases, or indemnifies an owner or direct contractor for the liability created by the measure, while preserving existing collective bargaining rights and allowing owners or direct contractors to seek recovery from subcontractors for amounts they pay on account of unpaid wages.

Impact

HB 2254 would add new provisions to ORS chapter 652 and affect construction-industry wage enforcement statewide. It expands potential liability beyond the immediate employer by exposing owners and direct contractors to civil responsibility for unpaid wages owed by subcontractors at any tier, and it creates a longer, six-year window for claims involving unpaid wages and overtime. The bill also requires subcontractors to provide certified payroll and related project and compliance information on request, and it permits owners and direct contractors to withhold payment in limited circumstances if records are not provided or if they have paid wages on the subcontractor’s behalf.

Sentiment

Based on the bill text and the absence of committee testimony or recorded votes, the measure appears designed to strengthen worker wage protections and improve accountability on construction projects. The overall framing is pro-worker and enforcement-oriented, with a focus on ensuring payment of earned wages and fringe benefits. No formal opposition or support is documented in the provided materials, so the public sentiment cannot be measured from hearings or votes; however, the structure of the bill suggests it would likely be viewed favorably by labor advocates and more cautiously by owners, developers, and contractors concerned about expanded liability and compliance burdens.

Contention

The main points of contention are likely to be the bill’s expansion of joint and several liability to owners and direct contractors for wage violations by subcontractors, including lower-tier subcontractors, and the requirement that subcontractors disclose payroll and workforce information. Owners and direct contractors may object to being held responsible for wage violations they did not directly cause, while labor organizations and worker advocates are likely to support the added enforcement tools. Another likely dispute is the bill’s invalidation of waiver, release, and indemnity agreements for this liability, which limits private risk-allocation arrangements in construction contracts. The carve-out for employees covered by certain collective bargaining agreements may also be relevant to stakeholders negotiating whether the bill should apply broadly or only to nonunion or otherwise unrepresented workers.