Advocacy in Action: Chamber Opposes SB 426, Concerned About Unintended Consequences

The Springfield Area Chamber of Commerce has voiced its opposition to Senate Bill 426, citing concerns over unintended consequences for businesses, contractors and workers. While the Chamber supports efforts to prevent wage theft and ensure fair compensation, it argues that the bill’s approach places undue liability on law-abiding businesses in the construction industry.

SB 426 would hold general contractors and property owners accountable for wage violations committed by subcontractors, regardless of their knowledge or involvement. The Chamber warns that this broad liability shift could discourage partnerships with small and emerging subcontractors, increase construction costs, and create additional challenges for businesses already complying with wage laws.

“While SB 426 is well-intended, we believe it takes the wrong approach by shifting liability in a way that could cause unintended harm to businesses, contractors, and even the workers it seeks to protect.”

– Vonnie Mikkelsen, President & CEO, Springfield Area Chamber of Commerce

The next work session for this bill is scheduled for Wednesday, March 19 at 3:00PM.

The Chamber is urging policymakers to focus on targeted enforcement measures that address wage theft without penalizing law-abiding businesses. The full letter of opposition, submitted to the Senate Committee on Judiciary, is included below.

March 18, 2025 
RE: Opposition to SB 426

Chair Prozanski, Vice Chair Thatcher, and Members of the Committee,

On behalf of the Springfield Area Chamber of Commerce, representing hundreds of businesses across Lane County, I want to begin by recognizing and appreciating the commitment of this committee and the bill sponsors to addressing wage theft in Oregon. We share your concern that workers who have earned their wages should never be denied fair compensation. However, while SB 426 is well-intended, we believe it takes the wrong approach by shifting liability in a way that could cause unintended harm to businesses, contractors, and even the workers it seeks to protect.

Shared goals, different solutions
We fully agree that wage theft is an unacceptable issue that must be addressed. Businesses that follow the law should not have to compete with those that cut corners, and workers should never be left without their hard-earned pay. The challenge lies in ensuring that solutions effectively target the true bad actors rather than spreading risk and liability to those who are already following the law.

Concerns about SB 426
SB 426 creates joint liability for general contractors and property owners for wage violations committed by subcontractors, regardless of whether they had knowledge of or involvement in the wrongdoing. This broad liability shift:

• Punishes law-abiding businesses while failing to address the root cause of wage theft–unscrupulous labor brokers and contractors who exploit workers.
• Discourages partnerships with small and emerging subcontractors, disproportionately impacting minority- and women-owned businesses that may struggle to comply with the additional liability risk.
• Drives up costs for the construction industry and property owners, making essential projects more expensive and exacerbating existing workforce and economic challenges.

A more effective path forward
Rather than imposing broad liability on responsible businesses and property owners, we urge the committee to consider solutions that directly target wage theft at its source:

• Adequately fund BOLI to strengthen enforcement against wage violations and ensure timely resolution of wage claims.
• Strengthen regulations on labor brokers by increasing bond requirements and oversight to remove bad actors from the industry.
• Encourage responsible contracting practices through education, incentives, and streamlined reporting requirements rather than punitive liability shifts.

We appreciate the dedication of this committee to protecting Oregon’s workforce, and we welcome the opportunity to collaborate on policies that truly address wage theft without creating unintended consequences for law-abiding businesses. SB 426, as written, places the burden on the wrong parties, and we respectfully urge you to reconsider its approach. Thank you for your time and consideration.

Sincerely, 

Vonnie Mikkelsen 
President and CEO 
Springfield Area Chamber of Commerce 

More About the Springfield Chamber’s Business Advocacy Efforts
As a trusted convener and provider of business resources, the Springfield Chamber is committed to fostering policies and incentives that contribute to our competitive position in private sector job creation, retention, and economic growth. The Chamber recognizes the systemic interdependencies of a healthy economy and provides an ear and a voice for local business at the confluence of government, commerce, and community. Through a robust platform of member advocacy services, the Chamber advocates for business by increasing visibility, dialogue, and representation at local, state, and federal policy circles around issues of impact and interest to their members.