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Oregon Considering Bill To Protect Workers From Delinquent Subcontractors

Bill would make general contractor liable for unpaid wages / benefits owed to a worker by a delinquent subcontractor under very specific circumstances

February 27, 2018
Protection from wage and benefit theft is the intent of Representative Julie Fahey's bill making its way through Oregon's state house.

Protection from wage and benefit theft is the intent of Representative Julie Fahey's bill making its way through Oregon's state house.

Oregon's state legislature passed House Bill 4154B on Monday which, if signed into law, would require a general contractor to pay for unpaid wages or benefits for workers who were employed by the general's subcontractors.

The bill would require a contractor to pay a worker's claim if:

  • The claim has been filed with BOLI for wages, overtime pay, or benefits
  • The claim has been investigated and found to be valid
  • BOLI has determined the wages or benefits are not collectable from the subcontractor
  • The general contractor has not already fully paid the subcontractor any amounts owed under the contract for the project in question

This means the general contractor would be allowed to withhold payment to the subcontractor in an amount equal to the amount owed to the subcontractor's employee.

The bill now heads to the Oregon Senate. If passed, the bill will apply to contractors who enter into contract with subcontractor on or after January 1, 2019.

image: Wikipedia Commons

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