2017 ORS 658.440¹
Requirements for labor contractors
  • prohibitions

Caution-flag-2-25x25
This section is amended
Effective March 12, 2018
Relating to requirements for labor contractors; creating new provisions; amending ORS 658.405, 658.410, 658.411, 658.412, 658.415, 658.428, 658.440 and 658.501; and declaring an emergency.

(1) Each person acting as a labor contractor shall:

(a) Carry a labor contractor’s license at all times and exhibit it upon request to any person with whom the labor contractor intends to deal in the capacity of a labor contractor.

(b) File immediately at the United States post office serving the labor contractor’s address, as noted on the face of the license, a correct change of address if the labor contractor permanently changes address, and notify the Commissioner of the Bureau of Labor and Industries each time an address change is made.

(c) Pay or distribute promptly, when due, to the individuals entitled thereto all money or other things of value entrusted to the labor contractor by any person for that purpose.

(d) Comply with the terms and provisions of all legal and valid agreements or contracts entered into in the labor contractor’s capacity as a labor contractor.

(e) File with the Bureau of Labor and Industries, as required by rule, information relating to work agreements between the labor contractor and construction property owners or farmers and between the labor contractor and workers or information concerning changes in the circumstances under which the license was issued.

(f) Furnish to each worker, at the time of hiring, recruiting, soliciting or supplying, whichever occurs first, a written statement in the English language and any other language used by the labor contractor to communicate with the workers that contains a description of:

(A) The method of computing the rate of compensation.

(B) The terms and conditions of any bonus offered, including the manner of determining when the bonus is earned.

(C) The terms and conditions of any loan made to the worker.

(D) The conditions of any housing, health and child care services to be provided.

(E) The terms and conditions of employment, including the approximate length of season or period of employment and the approximate starting and ending dates thereof.

(F) The terms and conditions under which the worker is furnished clothing or equipment.

(G) The name and address of the owner of all operations where the worker will be working as a result of being recruited, solicited, supplied or employed by the labor contractor.

(H) The existence of a labor dispute at the worksite.

(I) The worker’s rights and remedies under ORS chapters 654 and 656, ORS 658.405 (Definitions for ORS 658.405 to 658.503) to 658.503 (Service of process when labor contractor unavailable), the Service Contract Act (41 U.S.C. 351-401) and any other such law specified by the Commissioner of the Bureau of Labor and Industries, in plain and simple language in a form specified by the commissioner.

(g) At the time of hiring and prior to the worker performing any work for the labor contractor, execute a written agreement between the worker and the labor contractor containing the terms and conditions described in paragraph (f)(A) to (I) of this subsection. The written agreement shall be in the English language and any other language used by the labor contractor to communicate with the workers.

(h) Furnish to the worker, each time the worker receives a compensation payment from the labor contractor, a written statement itemizing the total payment and amount and purpose of each deduction therefrom, hours worked and rate of pay or rate of pay and pieces done if the work is done on a piece rate basis, and if the work is done under the Service Contract Act (41 U.S.C. 351-401) or related federal or state law, a written statement of any applicable prevailing wage.

(i) Provide to the commissioner a certified true copy of all payroll records for work done as a labor contractor when the contractor pays employees directly. The records shall be submitted in such form and at such times and shall contain such information as the commissioner, by rule, may prescribe.

(j)(A) If the person is a farm labor contractor engaged in the forestation or reforestation of lands, provide workers’ compensation insurance for each individual who performs manual labor in forestation or reforestation activities regardless of the business form of the contractor and regardless of any contractual relationship that may be alleged to exist between the contractor and the workers notwithstanding ORS 656.027 (Who are subject workers), unless workers’ compensation insurance is otherwise provided; or

(B) If the person is a farm labor contractor but is not engaged in the forestation or reforestation of lands, provide workers’ compensation insurance to the extent required under ORS chapter 656, unless workers’ compensation insurance is otherwise provided.

(2) If the labor contractor:

(a) Employs workers, the labor contractor shall substantially comply with the provisions of ORS 654.174 (Sanitation facilities for workers harvesting food crops) relating to field sanitation, and its implementing rules as adopted by the Department of Consumer and Business Services.

(b) Owns or controls housing furnished to workers in connection with the recruitment or employment of workers, the labor contractor shall ensure that the housing substantially complies with any applicable law relating to the health, safety or habitability of the housing.

(c) Recruits or solicits any worker to travel from one place to another for the purpose of working at a time prior to the availability of the employment, the labor contractor shall furnish to the worker, at no charge, lodging and an adequate supply of food until employment begins, in compliance with rules adopted by the Bureau of Labor and Industries. If employment does not begin within 30 days from the date the labor contractor represented employment would become available, the labor contractor shall refund to the worker all sums paid by the worker to the labor contractor and provide the worker, in cash or other form of payment authorized by ORS 652.110 (Method of paying employees), the costs of transportation, including meals and lodging in transit, to return the worker to the place from which the worker was induced to travel or the costs of transportation, including meals and lodging in transit, to another worksite selected by the worker, whichever is less. For the purposes of this paragraph, “recruits or solicits” does not include the mere provision of housing or employment to persons who have not otherwise been recruited or solicited by the labor contractor or an agent of the labor contractor prior to their arrival at the place of housing or employment. Workers who arrive at the place of employment prior to the date they were instructed by the labor contractor to arrive are not entitled to the benefits of this subsection until the date they were instructed to arrive.

(3) A person acting as a labor contractor, or applying for a license to act as a labor contractor, may not:

(a) Make any misrepresentation, false statement or willful concealment in the application for a license.

(b) Willfully make or cause to be made to any person any false, fraudulent or misleading representation, or publish or circulate any false, fraudulent or misleading information concerning the terms, condition or existence of employment at any place or by any person.

(c) Solicit or induce, or cause to be solicited or induced, the violation of an existing contract of employment.

(d) Knowingly employ an alien not legally present or legally employable in the United States.

(e) Assist an unlicensed person to act in violation of ORS 658.405 (Definitions for ORS 658.405 to 658.503) to 658.503 (Service of process when labor contractor unavailable).

(f) By force, intimidation or threat of procuring dismissal or deportation or by any other manner whatsoever, induce any worker employed or in a subcontracting relationship to the labor contractor to give up any part of the compensation to which the worker is entitled under the contract of employment or under federal or state wage laws.

(g) Solicit or induce, or cause to be solicited or induced, the travel of a worker from one place to another by representing to a worker that employment for the worker is available at the destination when employment for the worker is not available within 30 days after the date the work was represented as being available. [1959 c.395 §§9, 10; 1961 c.390 §5; 1971 c.479 §4; 1975 c.502 §6; 1981 c.606 §3; 1983 c.654 §6; 1989 c.164 §4; 2005 c.340 §2; 2007 c.160 §3; 2013 c.584 §16]

Law Review Cita­tions

26 WLR 391 (1990)

Notes of Decisions

Where parties to contract were domiciled and contracted in Oregon, contractor was licensed in Oregon and only relevant event that took place outside state was performance of labor, Oregon statute governing contracts between forestry contractors and workers is applicable to ac­tion for unpaid wages. Perez v. Coast to Coast Reforesta­tion Corp., 100 Or App 115, 785 P2d 365 (1990)

1 Legislative Counsel Committee, CHAPTER 658—Employment Agencies; Farm Labor Contractors and Construction Labor Contractors; Farmworker Camps, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors658.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 658, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano658.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.