1. (1) As used in this section and ORS 652.198:

   1. (a) “Authorized third party representative” means a third party that is authorized by an unrepresented employee to assert the rights of the unrepresented employee.

   2. (b) “Construction contract” means an express or implied agreement:

      1. (A) For the construction, reconstruction, alteration, maintenance, moving or demolition of any building, structure or improvement.
      2. (B) Relating to the excavation of or other development of or improvement to land.
   3. (c) “Construction trade labor organization” means a bona fide labor organization that represents employees in the building and construction trades.
   4. (d) “Direct contractor” means any person, including a construction manager, joint venture or any combination thereof, the person’s successors, heirs or assigns, that enters into a construction contract with an owner.
   5. (e) “Fringe benefit contributions” means the amount of compensation that accompanies or is in addition to an employee’s regular salary or wages, including, but not limited to, payments made to profit-sharing plans, retirement or pension plans, medical insurance, severance pay or holiday, vacation or sick leave plans, but does not include the benefit payments from such plans.
   6. (f) “Labor organization” means an organization, agency or an employee representation committee or plan, in which employees participate and which exists, in whole or in part, for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment or work conditions.

   7. (g)

      1. (A) “Owner” means any person, firm, partnership, corporation, association, company, organization or other entity, or any combination thereof, with an ownership interest, whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another interest or estate less than fee that causes:

         1. (i) A building, structure or improvement, new or existing, to be constructed, reconstructed, erected, altered, remodeled, repaired, maintained, moved or demolished; or
         2. (ii) Land to be excavated or otherwise developed or improved.

      2. (B) “Owner” does not mean:

         1. (i) A public agency, as defined in ORS 279C.800; or
         2. (ii) A financial institution that acquires ownership of a property through foreclosure or a deed in lieu of foreclosure, provided that the financial institution does not undertake, contract for or direct construction work beyond activities necessary to preserve or secure the property.
   8. (h) “Subcontractor” means any person that may or may not have direct privity with a direct contractor but that is a party to an express or implied contract with a direct contractor or with a direct contractor’s subcontractors at any tier to perform any portion of work within the scope of the direct contractor’s construction contract with an owner.

   9. (i) “Unrepresented employee” means an employee of a direct contractor or subcontractor who is:

      1. (A) Not represented by a construction trade labor organization that has established itself or its affiliates as the collective bargaining representative for persons performing work on a project; or

      2. (B) Not covered by a collective bargaining agreement that:

         1. (i) Contains a grievance procedure that results in a final and binding decision; and
         2. (ii) Provides a mechanism for recovering unpaid wages and fringe benefit contributions on behalf of the employees covered by the agreement.
2. (2) An owner that enters into a construction contract with a direct contractor shall be jointly and severally liable with the direct contractor for any unpaid wages, including fringe benefit contributions and penalties, owed to any unrepresented employee of the direct contractor and any unrepresented employee of a subcontractor at any tier for labor performed on a project within the scope of the construction contract.

3. (3)

   1. (a) Any of the following persons may bring a civil action against an owner, a direct contractor or a subcontractor in any court of competent jurisdiction to recover unpaid wages, including fringe benefit contributions, interest and penalty wages, damages, attorney fees and costs incurred in connection with the action:

      1. (A) An unrepresented employee.
      2. (B) An authorized third party representative.
   2. (b) Notwithstanding ORS chapter 180, the Attorney General may accept the assignment of claims under this subsection, bring civil actions in the name of the State of Oregon on assigned claims and recover costs as provided in this section. The Attorney General may adopt rules to implement this paragraph.

   3. (c)

      1. (A) Prior to commencing a civil action against an owner or a direct contractor under this subsection, a person must send written notice of the alleged violation by first-class certified mail to the owner and direct contractor that sets forth the alleged violation and the nature of the claim and states that the owner and the direct contractor have 21 calendar days from the certified delivery date to correct the alleged violation. Such notice does not operate to limit the liability of the owner or direct contractor or preclude a person from subsequently amending a complaint after the action is commenced to include additional parties to the action.

      2. (B) A civil action may not be:

         1. (i) Initiated until after the time period under subparagraph (A) of this paragraph has expired.
         2. (ii) Brought against an owner or a direct contractor if the owner or direct contractor has corrected the alleged violation within the specified time period under subparagraph (A) of this paragraph.
   4. (d) A civil action under this subsection to recover unpaid wages must be commenced within two years from the date on which the wages and fringe benefit contributions became due.
4. (4) Any agreement to waive or release an owner or direct contractor or to indemnify an owner or direct contractor for liability assigned under this section is invalid.

5. (5)

   1. (a) An owner or direct contractor may not avoid liability under this section by claiming that a person performing labor on a project within the scope of a construction contract is an independent contractor rather than an employee of a direct contractor or subcontractor unless the person qualifies as an independent contractor under ORS 670.600.
   2. (b) In any action brought under this section, there shall be a rebuttable presumption that a person performing labor on a project within the scope of a construction contract is an employee. The party claiming otherwise may rebut the presumption by establishing that the person qualifies as an independent contractor under ORS 670.600.

6. (6) Nothing in this section impairs:

   1. (a) The right of an owner or direct contractor to bring an action against a subcontractor to seek recovery of actual and liquidated damages for the amounts paid by the owner or direct contractor for unpaid wages, including fringe benefit contributions, interest and penalty wages, damages, attorney fees and incurred costs associated with an action brought under this section.
   2. (b) The right of an owner to bring an action against a direct contractor to seek recovery of actual and liquidated damages for the amounts paid by the owner for unpaid wages, including fringe benefit contributions, interest and penalty wages, damages, attorney fees and incurred costs associated with an action brought under this section.
7. (7) This section does not apply to the construction, reconstruction, alteration, maintenance, moving or demolition of any building, structure or improvement, or to the excavation or other development of or improvement to land, that relates to real property that is used as the owner’s principal residence or to real property consisting of five or fewer residential or commercial units on a single tract, as defined in ORS 215.010.
8. (8) Nothing in this section is intended to diminish the rights, privileges or remedies of an employee under a collective bargaining agreement.
9. (9) The Commissioner of the Bureau of Labor and Industries may adopt any rules necessary to implement the provisions of this section.

[2025 c.287 §2]