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Any contractors that are doing restoration work on either small commercial buildings or residential structures that are harmed by natural disasters or man-made causes are subject to the new rules for license bonds.

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House Bill 2977 (2013 Or Laws Ch 584) created a new classification of “construction labor contractor” (to be codified in ORS 658.015 to 658.991). The definition of a Construction Labor
Contractor is someone who solicits, supplies, recruits, or employs workers to perform labor for construction projects.

The bill becomes effective on July 1, 2015.

Currently, the Wage and Hour Division of BOLI is working on administrative rules to be adopted by the end of 2014 so that they will be in place when the bill becomes effective. Excluded from the definition of “construction labor contractors” are the following:
1. “Staffing agencies” e.g. temporary employment agencies;
2. Someone who has a construction contract with the property owner;
3. An owner who hires persons to work on the owners own property;
4. Labor Unions.

During the rule making process, BOLI will consider fine tuning and clarifying definitions of the above.

Thus, contractors who have a contract for construction activities are not covered. However, if they used a non-temporary employment agency construction labor contractor to supply workers,
they had better make sure they are licensed. HB 2977 creates a cause of action against persons using an unlicensed contractor. BOLI’s website will allow you to access a list of licensed  construction labor contractors, just as you can access a list of licensed farm labor contractors now. BOLI can also be called at 971-673-0844 to confirm whether a construction labor contractor is properly licensed.

HB 2977 amends ORS 658.465 to make any person who knowingly uses the services of an unlicensed construction labor contractor personally, jointly and severally liable with the person acting as a labor contractor to the same extent and in the same manner as provided in ORS 658.453(4). This provides for actual damages or $1,000, whichever amount is greater, for each violation. A worker also has a right of action against the labor contractor and any person using an unlicensed labor contractor. In addition, BOLI may assess a civil penalty not to exceed $2,000 against any person who uses an unlicensed labor contractor without first examining the labor contractor's license and retaining a copy of it.

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