Portland

Oregon House Passes Bill Empowering Construction Workers to Sue for Unpaid Wages

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Published on May 30, 2025
Oregon House Passes Bill Empowering Construction Workers to Sue for Unpaid WagesSource: Unsplash / {Josh Olalde}

The fight against wage theft in Oregon has made significant strides forward with the passing of a new bill by the House, targeting the construction industry where such infractions have routinely undercut workers. Officially known as SB 426, the legislation clears the way for construction workers to sue for unpaid wages, directly targeting the entities at the top: project owners and general contractors, as stated in a press release from the Oregon House Democrats.

Representative Lisa Fragala (D-Eugene), emphasizing the heart of the bill, pointed out the need for workers to receive the pay they have earned, she draws attention to the ethical underpinnings of the issue, stating, "Every Oregonian who works an honest day’s labor deserves to receive their hard-earned wages," the results of this legislation are designed to spur owners and general contractors to take measures ensuring laborers on their watch get compensated, it's a shift from the reactive approach to a more proactive stance against wage theft.

The bill seems especially timely in an economy that is slowing down, making the payment of fair wages even more crucial for working families. The current economic turbulence comes with rising living costs and Representative Andrea Valderrama (D-Outer East Portland) highlighted the bill's role in this light, saying, "Wage theft is theft — plain and simple — and it disproportionately harms Latino, immigrant, and low-wage workers in the construction industry, already under economic strain," underlining the socio-economic relevance of the issue in a candid exposition provided by the Democrats' press release.

Before the bill, workers' option to address wage theft was to complain with the Bureau of Labor and Industries; however, the bureau currently struggles with a significant backlog, limiting its capacity to take on new cases effectively, these setbacks have only added to the desperation of many who travailed a day's work and found their pockets unjustly light. SB 426 was passed with a close vote count of 31 to 26 and gives rise to a new pathway for workers seeking justice, as the Senate is expected to concur, allowing workers to hold bad actors in the construction industry accountable while establishing a fairer playing field for responsible contractors, Rep. Lesly Muñoz (D-Woodburn) lauded the bill for addressing "a fair construction industry where workers are paid for their labor."