National Alliance for Fair Contracting

Oregon

1. When is the prevailing wage rate used?
2. What is the definition of a public works or related projects?
3. Are there project monetary thresholds?
4. Are any types of projects specifically exempted?
5. What is included in the calculation of wage rates?
6. Who calculates the prevailing wage rates?
7. Enforcement: what are the penalties for violations? Criminal or fines?
8. Can contractors be debarred?
9. Are there posting requirements?
10. Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
11. Record Maintenance?
12. Are there any provisions which discuss apprentices?

When is the prevailing wage rate used?
Information not available at this time.

What is the definition of a public works or related projects?
"Public works" includes, but is not limited to, roads, highways, buildings, structures and improvements of all types, the construction, reconstruction, major renovation or painting of which is carried on or contracted for by any public agency to serve the public interest but does not include the reconstruction or renovation of privately owned property that is leased by a public agency. (279C.800 )

Are there project monetary thresholds?
Oregon's prevailing wage rate law applies to contracts where the total price exceeds $25,000. (OLMIS)

Are any types of projects specifically exempted?
A) Public works does not include the reconstruction or renovation of privately owned property that is leased by a public agency. (279C.800 )

B) Projects for which the contract price does not exceed $25,000.

C) Projects regulated under the Davis-Bacon Act (40 U.S.C. 276a). Notwithstanding such regulation, contractors and subcontractors shall pay individuals employed as flaggers on the projects not less than the prevailing rate of wage as determined by the Commissioner of the Bureau of Labor and Industries for that classification of work. As used in this paragraph, "flagger" means a person who controls the movement of vehicular traffic through construction projects using sign, hand or flag signals.

D) 1a. Projects for which no funds of a public agency are directly or indirectly used. In accordance with ORS chapter 183, the commissioner shall adopt rules to carry out the provisions of this paragraph.

2a. As used in this paragraph:

"Funds of a public agency" does not include funds provided in the form of a government grant to a nonprofit organization, unless the government grant is issued for the purpose of construction.
"Nonprofit organization" means an organization or group of organizations described in section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a) of the Internal Revenue Code.

1b. A public agency may not divide a public works project into more than one contract for the purpose of avoiding compliance with ORS 279C.800 to 279C.870.

2b. When the commissioner determines that a public agency has divided a public works project for the purpose of avoiding compliance with ORS 279C.800 to 279C.870, the commissioner shall issue an order compelling compliance.

3b. In making determinations under this subsection, the commissioner shall consider:

The physical separation of the project structures;
The timing of the work on project phases or structures;
The continuity of project contractors and subcontractors working on project parts or phases; and
The manner in which the public agency and the contractors administer and implement the project. [2003 c.794 '172] (279C.810)

What is included in the calculation of wage rates?
"Fringe benefits" means the amount of:

The rate of contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person under a plan, fund or program; and
The rate of costs to the contractor or subcontractor that may be reasonably anticipated in providing benefits to workers pursuant to an enforceable commitment to carry out a financially responsible plan or program that is committed in writing to the workers affected, for medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, for unemployment benefits, life insurance, disability and sickness insurance or accident insurance, for vacation and holiday pay, for defraying costs of apprenticeship or other similar programs or for other bona fide fringe benefits, but only when the contractor or subcontractor is not required by other federal, state or local law to provide any of these benefits. (279C.800 )

Who calculates the prevailing wage rates?
Wage surveys are conducted annually and make every reasonable attempt to include all nonresidential construction contractors. The law states that the Commissioner of the Bureau of Labor and Industries should rely on the survey data when making wage and benefit determinations. (OLMIS)

Enforcement: what are the penalties for violations? Criminal or fines?
1. Any contractor or subcontractor or contractor's or subcontractor's surety that violates the provisions of ORS 279C.840 is liable to the workers affected in the amount of their unpaid minimum wages, including all fringe benefits as defined in ORS 279C.800, and in an additional amount equal to the unpaid wages as liquidated damages.

2. Actions to enforce liability to workers under subsection (1) of this section may be brought as actions on contractors' bonds as provided for in ORS 279C.610.

3. (3) If the public agency fails to include a provision that the contractor and any subcontractor shall comply with ORS 279C.840 in the advertisement for bids, the request for bids, the contract specifications, the accepted bid or elsewhere in the contract documents, the liability of the public agency for unpaid minimum wages, as described in subsection (1) of this section, is joint and several with any contractor or subcontractor that had notice of the requirement to comply with ORS 279C.840. The Commissioner of the Bureau of Labor and Industries may enforce the provisions of this subsection by a civil action under ORS 279C.850 (4), by a civil action on an assigned wage claim under ORS 652.330, or by an administrative proceeding on an assigned wage claim under ORS 652.332. [2003 c.794 '171] (279C.855)

4. In addition to any other penalty provided by law, the Commissioner of the Bureau of Labor and Industries may assess a civil penalty not to exceed $5,000 for each violation of any provision of ORS 279C.800 to 279C.870 or any rule of the commissioner adopted thereunder. (279C.865)

Can contractors be debarred?
When the Commissioner of the Bureau of Labor and Industries, in accordance with the provisions of ORS chapter 183, determines that a contractor or subcontractor has intentionally failed or refused to pay the prevailing rate of wage to workers employed upon public works, a subcontractor has failed to pay to its employees amounts required by ORS 279C.840 and the contractor has paid those amounts on the subcontractor's behalf, or a contractor or subcontractor has intentionally failed or refused to post the prevailing rates of wage as required by ORS 279C.840 (4), the contractor, subcontractor or any firm, corporation, partnership or association in which the contractor or subcontractor has a financial interest shall be ineligible, for a period not to exceed three years from the date of publication of the name of the contractor or subcontractor on the ineligible list as provided in this section, to receive any contract or subcontract for public works. The commissioner shall maintain a written list of the names of those contractors and subcontractors determined to be ineligible under this section and the period of time for which they are ineligible. A copy of the list shall be published, furnished upon request and made available to contracting agencies. (279C.860)

Are there posting requirements?
1. Every contractor or subcontractor engaged on a project for which there is a contract for a public works shall keep the prevailing rates of wage for that project posted in a conspicuous and accessible place in or about the project. The Commissioner of the Bureau of Labor and Industries shall furnish without charge copies of the prevailing rates of wage to contractors and subcontractors. (279C.840)

2. Every contractor or subcontractor engaged on a project for which there is a contract for a public works to which the prevailing wage requirements apply that also provides or contributes to a health and welfare plan or a pension plan, or both, for the contractor or subcontractor's employees on the project shall post a notice describing the plan in a conspicuous and accessible place in or about the project. The notice preferably shall be posted in the same place as the notice required under subsection (4) of this section. In addition to the description of the plan, the notice shall contain information on how and where to make claims and where to obtain further information. (279C.840)

Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
A. The Commissioner of the Bureau of Labor and Industries, by rule, shall establish a fee to be paid by the contractor to whom a public works contract subject to ORS 279C.800 to 279C.870 has been awarded. The fee shall be used to pay the costs of:

Surveys to determine the prevailing rates of wage;
Administering and providing investigations under and enforcement of ORS 279C.800 to 279C.870; and
Providing educational programs on public contracting law under the Public Contracting Code.
The fee shall be 0.1 percent of the contract price. However, in no event may a fee be charged and collected that is more than $5,000 or less than $100.

B. The commissioner shall pay moneys received under this section into the State Treasury. The moneys shall be credited to the Prevailing Wage Education and Enforcement Account created by ORS 651.185.

C. The contractor shall pay the fee at the time of the first progress payment or 60 days after work on the contract has begun, whichever date is earlier.

D. Failure to make timely payment under subsection (3) of this section shall subject the contractor to a civil penalty under ORS 279C.865 in such amount as the commissioner, by rule, shall specify. [2003 c.794 '178] (279C.825)

E. All moneys collected as penalties under this section shall be first applied toward reimbursement of costs incurred in determining violations, conducting hearings and assessing and collecting the penalties. The remainder, if any, of moneys collected as penalties under this section shall be paid into the State Treasury and credited to the General Fund and are available for general governmental expenses. (279C.865)

Record Maintenance?
A. The contractor or the contractor's surety and every subcontractor or the subcontractor's surety shall file certified statements with the public agency in writing, on a form prescribed by the Commissioner of the Bureau of Labor and Industries, certifying the hourly rate of wage paid each worker whom the contractor or the subcontractor has employed upon the public works, and further certifying that no worker employed upon the public works has been paid less than the prevailing rate of wage or less than the minimum hourly rate of wage specified in the contract. The certificate and statement shall be verified by the oath of the contractor or the contractor's surety or subcontractor or the subcontractor's surety that the contractor or subcontractor has read the statement and certificate and knows the contents thereof and that the same is true to the contractor or subcontractor's knowledge. The certified statements shall set out accurately and completely the payroll records for the prior week, including the name and address of each worker, the worker's correct classification, rate of pay, daily and weekly number of hours worked, deductions made and actual wages paid.

B. The contractor or subcontractor shall deliver or mail each certified statement required by subsection (A) of this section to the public agency. Certified statements for each week during which the contractor or subcontractor employs a worker upon the public works shall be submitted once a month, by the fifth business day of the following month. Information submitted on certified statements may be used only to ensure compliance with the provisions of ORS 279C.800 to 279C.870.

C. Each contractor or subcontractor shall preserve the certified statements for a period of three years from the date of completion of the contract.

D. Certified statements received by a public agency are public records subject to the provisions of ORS 192.410 to 192.505. [2003 c.794 '169] (279C.845)

Are there any provisions which discuss apprentices?
There are no sections pertaining to apprentices in the Oregon Prevailing Wage Law.

References

1.) Oregon Labor Market Information System
* Prevailing Wage Laws Designed to Protect Working Families
* This web-site is designed by the Oregon Employment Department.

2.) Chapter 279C - Public Contracting - Public Improvements and Related Contracts; Prevailing Wage Section
* This is the actual law pertaining to the prevailing wage rate in Oregon.