Oregon House Bill 4089, effective January 1, 2027, makes changes to the state’s criminal enforcement framework governing wage theft, contractor licensing, and labor contracting practices in the construction industry. Most notably, the law expands Oregon’s theft of services statute to cover conduct undertaken with the intent to avoid full or partial payment for services, closing a gap that had limited criminal exposure in some wage-related cases. The legislation also clarifies that criminal prosecution for theft of services or related offenses does not bar employees or contractors from pursuing civil remedies for unpaid wages, compensation, or statutory damages, reinforcing parallel enforcement pathways.
HB 4089 imposes new compliance obligations directly on construction industry participants. Direct contractors and subcontractors are now prohibited from knowingly entering into contracts with unlicensed construction labor contractors. For the first time, the statute creates explicit criminal penalties for contractors who engage unlicensed labor contractors, underscoring the importance of license verification and due diligence throughout the contracting chain. In addition, the bill enhances the role of Oregon’s Interagency Compliance Network by requiring it to develop and refine investigative methods related to theft of services violations, signaling increased coordination and enforcement activity among the Department of Justice, the Bureau of Labor and Industries, and the Construction Contractors Board.
The law also significantly raises the stakes for noncompliance. Contractor license fraud, including the intentional or fraudulent use of contractor license numbers, is elevated from a Class A misdemeanor to a Class C felony. Contractors who knowingly work with unlicensed construction labor contractors face a Class A misdemeanor for an initial violation, which escalates to a Class C felony for repeat offenses. Theft of services penalties now range from a Class C misdemeanor to a Class B felony, depending on the aggregate value of services stolen. In light of these changes, contractors operating in Oregon’s construction sector should reassess licensing verification processes, contracting practices, and wage payment controls to mitigate heightened criminal and civil exposure under HB 4089.