Oregon's Construction Contractors Board is spending some of its time this fall walking contractors through two wage-theft laws, one already on the books and one that kicks in January 1. A contractor FAQ tucked into the packet for the board's October 28 meeting in Salem lays out what each one does and what the agency wants licensees doing about it (via Oregon Construction Contractors Board).
The first is Senate Bill 426, passed in 2025 and in force since January 1, 2026. It makes certain property owners and direct contractors jointly and severally liable for unpaid wages owed to unrepresented workers, including people employed by subcontractors at any tier below them. In plain terms: if a sub two levels down stiffs its crew, those workers can come after the GC or the owner for the money.
There are limits. According to the Bureau of Labor and Industries, the law carves out public agencies, certain financial institutions, owner-occupied principal residences, and properties with five or fewer units on a single tract. Workers covered by union collective bargaining agreements fall outside it, the CCB FAQ says.
BOLI's summary of the law also describes how a claim works. Workers, a third-party representative, or the Attorney General can sue within two years of when the wages were due, but they have to send written notice of nonpayment first, and no suit can go forward if the problem is fixed within 21 days. People doing work within the contract's scope are presumed to be employees unless shown otherwise. Subcontractors have to hand over specified records when asked, and an owner or direct contractor can hold back payment if they don't.
The second law, House Bill 4089 from the 2026 short session, takes effect January 1, 2027. The CCB says it widens the crime of theft of services to cover failing to fully pay workers, and the board's summer newsletter adds that this applies whether those workers are employees or independent contractors and lets district attorneys prosecute partial or nonpayment as a crime. The legislature's own catchline describes the bill as modifying theft of services to include partial payments.
HB 4089 also gets tougher on licensing shortcuts. Under the enrolled bill text, a direct contractor or subcontractor who knowingly signs a contract with a construction labor contractor who isn't properly licensed commits a Class A misdemeanor, and a repeat conviction makes it a Class C felony. Using another contractor's CCB license number without permission, or using a license number to deceive the public, moves from a Class A misdemeanor to a Class C felony. The CCB's materials put the top penalties at up to five years in prison, a $125,000 fine, or both.
One detail worth knowing: BOLI says contractors licensed by the CCB are excluded from the definition of a construction labor contractor under HB 4089. BOLI's licensing page describes a labor contractor as anyone who recruits, solicits, supplies or employs workers to do construction labor, and lists exemptions that include people holding construction contracts with property owners and bona fide staffing agencies.
The same packet has a budget note that small shops should watch. The CCB's 2027-29 agency request budget would eliminate two vacant positions to protect reserves for a new licensing system. The agency isn't proposing a fee increase now, but it flags a possible one during the 2027-29 biennium and says any change would be expected to be incremental. The last increase, adopted in 2024, was large partly because of a 14-year gap between adjustments, according to the packet. The board's next meeting is set for December 2, 2026.
Why it matters for Contractors
For a small GC, SB 426 means your subs' payroll problems can become your problem, so it's worth knowing who's actually on your jobs and whether they're paying people. The CCB's advice is straightforward: review your subcontracting practices and confirm that every sub and labor provider you use is properly licensed and compliant. Its newsletter also suggests updating contract language.
If most of your work is remodeling owner-occupied homes or small buildings of five units or fewer, the SB 426 exclusions may cover a lot of it, but read the details before assuming you're off the hook. HB 4089 is different: the license-number and unlicensed-labor-contractor penalties apply on any job starting in January. Never let anyone work under your CCB number, and check a labor provider's BOLI license before you bring a crew on. The CCB also recommends talking to a licensed attorney if you have questions about how either law hits your contracts.