Senate Bill 426

Digest: The Act makes laws about unpaid wages for workers who work on construction projects. (Flesch Readability Score: 65.7). Makes an owner and a direct contractor jointly and severally liable in a civil action for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractors at any tier. Provides the statute of limitations for actions regarding recovery for unpaid wages. <b>Specifies that the joint and several liability provisions for unpaid wages do not apply to construction work relating to real property that is used as the owner's principal residence or real property with five or fewer residential or commercial units on a single tract.</b> Clarifies that the Attorney General may accept the assignment of claims and bring civil actions in the name of the State of Oregon on such claims. Permits the Attorney General to adopt rules regarding the assignment of claims. Requires notice to be sent by certified mail that informs the owner and the direct contractor of the alleged violation and specifies the time period within which the owner and the direct contractor may correct the alleged violation. Creates a rebuttable presumption that, in any action for unpaid wages, the person performing labor on a construction project is an employee. Provides that the party claiming otherwise may rebut the presumption by establishing that the person qualifies as an independent contractor. Provides that an owner may bring an action against a direct contractor to recover damages for amounts paid by the owner. Requires subcontractors to provide certain payroll records and other information to the owner or the direct contractor, upon request. Provides that subcontractors shall provide certain payroll records to an authorized third party representative in certain circumstances. Permits the owner and the direct contractor to withhold payment to a subcontractor in certain circumstances. Clarifies that the owner or direct contractor may withhold payment in an amount and to the extent that the owner or direct contractor paid, on behalf of the subcontractor, wages owed to the subcontractor's employees.

In the Senate

• Floyd Prozanski

  Sponsor

• James Manning Jr.

  Chief co-sponsor

In the House of Representatives

• Lisa Fragala

  Sponsor

• Andrea Valderrama

  Chief co-sponsor

• Senate, third reading18–11

  Passed · Apr 9 · 1 present

• House of Representatives, third reading22–35

  May 28 · 2 present

• Labor and Workplace Standards22–35

  May 28 · 2 present

• Rules22–35

  May 28 · 2 present

• House of Representatives, third reading31–26

  Passed · May 28 · 2 present

• Senate, concurrence17–12

  Agreed to the other chamber's changes · May 29 · 1 present

• Senate committee amendmentAdopted

  Adopted Apr 2

• House of Representatives committee amendmentAdopted

  Adopted May 23

• House of Representatives committee amendmentAdopted

  Adopted May 23

l9n doesn't hold this bill's text yet.

In the Senate Jan 13 – Apr 9

1. Jan 13Introduced
2. Jan 17Sent to Judiciary
3. Feb 26Heard in Judiciary
4. Mar 26Heard in Judiciary
5. Apr 2Judiciary recommended it as amended
6. Apr 3Read a second time
7. Apr 9Passed the Senate, 18 to 11

In the House of Representatives Apr 10 – May 28

1. Apr 10Arrived in the House of Representatives
2. Apr 15Sent to Labor and Workplace Standards
3. May 7Heard in Labor and Workplace Standards
4. May 19Heard in Labor and Workplace Standards
5. May 23Labor and Workplace Standards recommended it as amended
6. Labor and Workplace Standards recommended it as amended
7. May 27Read a second time
8. May 28Read a third time
9. Passed the House of Representatives, 31 to 26

Back in the Senate May 29 – May 30

1. May 29The Senate agreed to the House of Representatives's amendments and passed it again, 17 to 12
2. May 30Signed in the Senate

To the Governor Jun 2 – Jun 20

1. Jun 2Signed in the House of Representatives
2. Jun 9Signed by the Governor
3. Jun 20Became chapter 287 of Oregon Laws 2025
4. In force from January 1, 2026