BOLI Prevailing Wage Requirements for Oregon Contractors

BOLI prevailing wage requirements apply to Oregon public works projects with a total price above $50,000: contractors and subcontractors must pay each worker no less than the prevailing basic hourly wage plus fringe benefits set by the Bureau of Labor and Industries for that trade and region, follow public works overtime rules, meet apprenticeship obligations on larger jobs, file certified payroll, and post the rates at the job site. Miss those duties and the consequences run from withheld progress payments to a three-year ban on public works contracts.

Which Projects Are Covered

“Public works” under ORS 279C.800 covers construction, reconstruction, major renovation, demolition, hazardous waste removal, or painting done for or on behalf of a public agency, including state agencies, counties, cities, school districts, and special service districts. Roads, bridges, public buildings, and infrastructure improvements all qualify when a public agency contracts for them or performs them directly.¹

Privately owned projects can still qualify. A project counts as public works if it uses $750,000 or more in public agency funds, or if a public agency will occupy or use 25 percent or more of the completed building’s square footage.¹ Solar energy installations on publicly owned land or buildings are covered even without any public funds.

The $50,000 Threshold

Projects with a total price of $50,000 or less are exempt. That price includes work performed by every paid worker on the project but excludes donated materials and volunteer labor. If the price crosses $50,000 at any point during the project, the exemption disappears and the wage requirements apply retroactively.² The threshold applies to the whole project, not to individual subcontracts, so splitting a job into smaller pieces to stay under the line does not work.

Other Exemptions

Projects using no public agency money, directly or indirectly.
People’s Utility District contracts governed separately under ORS 261.345.
Privately owned residential construction that predominantly provides affordable housing.
Privately owned, privately funded projects where a public agency will occupy less than 25 percent of the square footage and less than $750,000 of public funds are used.
Public universities with governing boards have limited exemptions from certain prevailing wage statutes, though this does not cover agreements where a private entity builds on university-owned property.

Correctional inmates in work-release programs and Oregon Youth Conservation Corps members are also excluded from the wage payment requirements.²

The Rates, and Where to Find Them

Prevailing wage rates differ by occupation and geographic region to reflect local labor market conditions. Each classification includes a basic hourly wage and a fringe benefit rate covering items like health insurance, pension contributions, and training funds.³ A carpenter in the Portland metro area has a different rate than a carpenter in rural southern Oregon.

BOLI updates the rates quarterly, generally on January 5, April 5, July 5, and October 5.³ Check the current rates for your project’s region and trades before bidding and throughout the job. Misclassifying a skilled worker into a lower-paying category is one of the most common violations BOLI investigates.

Public Works Overtime Rules

Oregon’s overtime rules on public works go beyond standard employment law. Workers cannot be employed for more than 10 hours in a day or 40 hours in a week except in cases of necessity or emergency. The overtime pay rate depends on the schedule:

Five-day work week (Monday through Friday): time-and-a-half for hours over eight in a day or 40 in a week.
Four-day work week (Monday through Friday): time-and-a-half for hours over 10 in a day or 40 in a week.
Saturdays and legal holidays: time-and-a-half for all hours worked.

The eight-hour daily overtime trigger on a five-day schedule catches contractors used to the 40-hour weekly threshold alone.⁴

Apprenticeship on Projects of $1,000,000 or More

Public improvement contracts with an estimated cost of $1,000,000 or more must include an apprenticeship requirement. At least 15 percent of the total work hours in apprenticeable occupations must be performed by apprentices, and apprentices must be paid the prevailing apprentice rate for their occupation as determined by BOLI.⁵

Contractors also must submit a plan for outreach to, and recruitment and retention of, businesses certified under Oregon’s disadvantaged business enterprise program. Progress reports on both apprenticeship hours and outreach efforts are required at intervals the contracting agency specifies.

Certified Payroll Reporting

Every contractor and subcontractor on a prevailing wage project must file certified statements with the public agency overseeing the project. Statements are prepared weekly but submitted once a month, by the fifth business day of the following month. Weekly in scope, monthly in delivery, and that is where many contractors trip up.⁶

BOLI provides Form WH-38 as a template, but any format works so long as it carries all the required information and includes the sworn certification on the second page.⁷ Each certified statement must include:

The name and address of every worker on the project
Each worker’s correct trade classification
The rate of pay for each classification
Daily and weekly hours worked
Gross wages earned during each week covered

It must also include a sworn oath that no worker was paid less than the prevailing rate and that the payroll records are accurate and complete.⁶

The 25 Percent Withholding Rule

If a contractor has not filed the required certified statements, the public agency must retain 25 percent of all amounts the contractor has earned on the project. The withheld funds are released within 14 days after the contractor files the missing statements. The same rule flows downhill: contractors must withhold 25 percent from any first-tier subcontractor who has not filed their own certified statements.⁶ The public agency is not required to verify the truth of the statements, only that they were filed; verification is BOLI’s job.

Recordkeeping

Contractors and subcontractors must preserve their certified statements for three years from the date the contract is completed.⁶ That is BOLI’s audit window. On a large project that takes two years to build, three years goes fast, so keep the records organized from day one.

Posting the Rates at the Job Site

Every contractor and subcontractor must post the prevailing wage rates in a visible, accessible location at the job site. BOLI provides copies at no charge. If the contractor also contributes to a health and welfare or pension plan for workers on the project, a separate notice describing those plans, how to file claims, and where to get more information must be posted alongside the wage rates.⁸

When Davis-Bacon Also Applies

Projects that receive federal funding through grants, loans, loan guarantees, or insurance may also trigger the federal Davis-Bacon Act, which covers federally funded or assisted construction contracts exceeding $2,000.⁹

When both laws apply, the contractor must pay whichever rate is higher for each trade classification. Contract specifications must state both the Oregon and federal rates, and the public agency is responsible for including a provision requiring payment of the higher rate. If the agency fails to include both rates and workers end up receiving the lower one, the agency itself becomes liable for the difference plus an equal amount in liquidated damages.¹⁰

Residential construction projects subject to both laws may generally use the federal residential rates unless no published federal rate exists for a specific classification. On dual-coverage projects, BOLI follows federal guidelines for defining the “site of work” and for determining when delivery personnel are owed prevailing wages. Contractors on Davis-Bacon jobs may also need to file the federal WH-347 form, which requires weekly submission under the Copeland Act.¹¹

Penalties and Debarment

BOLI can order back pay for underpaid workers and pursue civil penalties. Under ORS 279C.865, failing to pay the required prevailing wage and failing to pay required fringe benefits count as separate violations, so a contractor who shorted both faces compounded penalties.

The most severe consequence is debarment. The Commissioner maintains a published list of ineligible contractors, and any contractor or subcontractor on the list cannot receive a public works contract or subcontract for three years. Debarment can result from:

Intentionally refusing to pay prevailing wages
Failing to pay workers, leaving a surety or another party to cover the obligation
Intentionally refusing to post the required prevailing wage rates at the job site
Intentionally falsifying certified payroll statements

Debarment reaches beyond the company itself. If the contractor is a corporation or LLC, individual officers, agents, members, or managers who were responsible for the violation can be personally barred from public works contracts for the same three-year period.¹² The Commissioner may remove a name from the list early for good cause shown, but that is a high bar, and most contractors serve the full three years.

How Complaints and Investigations Work

Workers who believe they were paid less than the prevailing rate can file a complaint through BOLI’s online Complaint Resolution Center or its Wage and Hour Division.¹³ BOLI’s Commissioner has broad investigative authority. Investigators can enter a contractor’s office or business during reasonable hours and inspect any payroll records needed to determine whether prevailing wages are actually being paid. The Commissioner can also initiate legal proceedings directly, without needing a worker’s assignment of claims, seeking both an injunction against future violations and payment of back wages and overtime owed.¹⁴

1
Oregon Public Law. Oregon Revised Statutes ORS 279C.800 – Definitions for ORS 279C.800 to 279C.870
2
Cornell Law Institute. Oregon Administrative Code 839-025-0100 – Exemptions from ORS 279C.800 to 279C.870
3
State of Oregon. Prevailing Wage Rates
4
Oregon State Legislature. Oregon Revised Statutes ORS 279C – Public Contracting – Section 279C.540
5
Oregon State Legislature. Oregon Revised Statutes ORS 279C – Public Contracting – Section 279C.533
6
Oregon Public Law. Oregon Revised Statutes ORS 279C.845 – Certified Statements Regarding Payment of Prevailing Rates of Wage
7
Bureau of Labor and Industries. BOLI Payroll/Certified Statement Form WH-38
8
Oregon Public Law. Oregon Revised Statutes ORS 279C.840 – Payment of Prevailing Rate of Wage
9
U.S. Department of Labor. Davis-Bacon and Related Acts
10
Oregon Public Law. Oregon Revised Statutes ORS 279C.830 – Provisions Concerning Prevailing Rate of Wage in Specifications and Contracts
11
U.S. Department of Labor. Instructions for Completing Davis-Bacon and Related Acts Weekly Certified Payroll Form WH-347
12
Oregon Public Law. Oregon Revised Statutes ORS 279C.860 – Ineligibility for Public Works Contracts for Failure to Pay Prevailing Rate of Wage
13
State of Oregon. Wage and Hour Complaint
14
Oregon Public Law. Oregon Revised Statutes ORS 279C.850 – Inspection to Determine Whether Prevailing Rate of Wage Being Paid