The Portland Metro Chamber, along with a coalition of business and industry partners, strongly opposes Senate Bill 426A. While the bill claims to address wage theft in the construction industry, its approach shifts financial liability onto property owners and upper-tier contractors, regardless of their knowledge or involvement. This misguided legislation threatens to destabilize Oregon’s construction industry, increase risk for small businesses, and discourage inclusive hiring practices.
Why This Matters to Your Business
SB 426A creates unnecessary legal exposure for homeowners, developers, and general contractors by making them liable for wage violations committed by subcontractors. Even when payments are made in full and there is no knowledge of wrongdoing, property owners could still be held responsible, undermining trust and fairness in contractual agreements.
This would be particularly damaging for:
- Small businesses that own commercial or rental properties;
- Emerging and minority contractors who could be passed over due to perceived risk;
- Independent contractors whose classification could become a liability for others;
- Homeowners who could unknowingly face wage claims on personal or secondary properties.
A Better Approach
The Chamber and its partners are calling on lawmakers to refocus efforts on true enforcement mechanisms, not liability transfers. Oregon has the tools to go after wage theft, but they must be properly funded and enforced:
- Fully fund BOLI (HB 5015): The Bureau of Labor and Industries handles wage claims and enforces labor laws. Ensuring full funding will improve response times, enhance protections for vulnerable workers, and allow investigators to pursue violators efficiently.
- Regulate labor brokers (SB 1200 / HB 3957): Many wage theft cases originate with unregulated labor brokers who operate between contractors and workers. Targeted broker regulation would address the root cause of wage theft without harming responsible businesses.
Our Position
The Portland Metro Chamber stands firmly against wage theft. However, SB 426A punishes the wrong parties, shifting the risk to those who follow the rules and fail to hold the actual offenders accountable. We believe the legislature should pursue comprehensive solutions that protect workers and strengthen the integrity of the construction industry without imposing new risks on small businesses and homeowners.
Learn more about SB 426A.
We urge our members to stay engaged as this conversation continues. The Chamber remains committed to advocating for thoughtful, fair policy solutions that foster economic opportunity, protect workers, and support Oregon’s business community.