April 13, 2023 11:05 a.m.

On Wednesday, Oregon House Democrats passed the Wage Theft Protection Act of Oregon.

A release from the House Majority Office said House Bill 2057 holds construction contractors liable for unpaid wages made by fraudulent subcontractors.

The release said wage theft occurs when an employer fails to pay an employee wages that they are legally owed. Advocates of the legislation said these forms of theft hurt working families’ wallets and add unnecessary burdens to social safety nets, reduce tax revenues and have a harmful impact on local communities.

Representative Paul Holvey, a Eugene Democrat, said “Defrauding workers of what they are rightfully entitled to can be devastating”. Holey said, “When workers don’t receive compensation, that could be the difference between making this month’s rent or being able to cover childcare costs. Working Oregonians deserve better”.

Democrats said current law does not offer adequate and timely pathways for construction workers to reclaim stolen wages.

Holvey said, “Going through the Oregon Bureau of Labor and Industries is slow, cumbersome, and oftentimes doesn’t result in full payment of compensation to the worker”.

Under the Wage Theft Protection Act of Oregon, subcontractors will be required to provide certain payroll records and other information to the contractor upon request. Contractors will also be allowed to withhold payment from bad acting subcontractors if the subcontractor fails to comply with the requirement or fails to pay wages owed.

The Wage Theft Protection Act of Oregon passed 31-24 and now heads to the Senate.