BOLI has filed a Permanent Administrative Order (HB 2688) regarding prevailing wage requirements, effective July 1, 2026. Please review these updates closely, as they introduce significant changes to how your agency manages public works contracts.
As a point of process education, once the bill (HB2688) is passed by the legislature, it goes to the appropriate State agency (in this case BOLI) to develop the Oregon Administrative Rules (OAR) to actually implement the law. They provide definitions and interpretation that goes beyond just the legislation, and help public agencies implement the law. These OARs for BOLI apply to all public agencies in the state.
As a summary, here are some key adjustments to Prevailing Wage Requirements from HB 2688:
Satellite & Off-Site Work: Prevailing wage laws now extend to off-site fabrication and satellite locations. Contract specifications must include a list of potential off-site work, and we must require contractors to provide notice when utilizing these sites.
Wage Posting: All applicable wage rate determinations must be posted at both primary and satellite locations.
Fee Structure: While the PWR fee remains at 0.1%, public agencies now have the option to pass this fee to third parties or funding awardees in specific scenarios. Please note that the agency retains legal liability for payment. Additionally, the Public Works Fee (PWR) cap rose from $7,500 to $12,500 effective June 5, 2026 (HB 4027 (2026)).
Mandatory Contract Clauses: Agencies are required to integrate updated clauses regarding labor protections, overtime thresholds, mandatory written notice to workers, and medical/benefit payment enforcement.
Public Works Bond Requirements (OAR 839-025-0015):
Core Requirement: Contractors and subcontractors must file a $30,000 public works bond with the Oregon Construction Contractors Board (CCB) for any contract or subcontract worth $100,000 or more.
Entity Registration: The name on the bond must exactly match the name registered with the Oregon Corporation Division.
Business Changes: Name changes must be reported to the CCB within 30 days. If a business changes its entity type (e.g., from a sole proprietorship to an LLC), a new bond must be purchased; insurance "riders" are not accepted.
Compliance for Certified Businesses: If a certified minority, woman, veteran-owned, or emerging small business violates prevailing wage laws, any bond exemptions are revoked, and they must file the standard $30,000 bond.
Please review the full text which I've attached so you can ensure all your agency's upcoming projects comply with these new administrative rules.
Brian Smith, Chair
Columbia Chapter Legislative Committee