Oregon Labor Contractors Bond
Whether you are a construction labor contractor, farm/forest labor contractor, or property services (janitorial) contractor, the Oregon Bureau of Labor and Industries (BOLI) Wage and Hour Division requires a surety bond for you to receive and maintain your license.
For labor contractors with 20 employees or less, a $10,000 bond is needed. Labor contractors with 21 or more employees must have a $30,000 bond. Those applying for a camp operator indorsement need to obtain a minimum of $15,000 surety bond, regardless of the number of employees. Trust us, “indorsement” is the right spelling per the Oregon State Code and has the same meaning as “endorsement”.
What Is the Cost of the Labor Contractors Bond in Oregon?
With Jet the Labor Contractor Bond starts at $90 for those with 20 or fewer employees and $270 for those with 21 or more employees. The Farmworker Camp Operator Indorsement Bond starts at $300. Depending on the length of your license, the bond is available in one-, two-, and four-year terms. Whether you need the $10,000 bond, the $30,000 bond, or the $15,000 bond, the bond expiration date needs to align with the license expiration date.
The price you pay for the bond is based on a soft credit check. Jet’s monthly option also allows for more financial flexibility, which is a payment option in the application. The lowest rates Jet offers for a one-year Labor Contractor Bond are as follows:
| BOND | Monthly | 1 Year Term Cost |
|---|---|---|
| $10,000 - 20 or fewer employees | $9 | $90 |
| $15,000 - Farmworker Camp Indorsement | $14 | $135 |
| $30,000 - 21 or more employees | $27 | $270 |
All labor contractor licenses begin as a one-year license. If you have operated for the past two consecutive years without a valid wage claim or other violation of ORS 658, a longer (two- or four-year) renewal period may be requested by you to the BOLI (thus saving you on some licensing fees).
Oregon Labor Contractor Classifications
If your construction labor or farm/forest labor contractor business is one of the following entity types, each owner/partner must submit their own license application and surety bond: partnership, Limited Liability Partnership (LLP), Corporation, and Limited Liability Company (LLC).
Construction labor contractors are those who receive compensation for employing, recruiting, soliciting, or supplying workers to perform construction labor for another.
Farm/forest labor contractors refers to persons who receive compensation for soliciting, supplying, recruiting, or employing workers to do agricultural or reforestation work for another. Some may only be a farm labor contractor, but all forest labor contractors must first get licensed as a farm labor contractor and get an indorsement (same as endorsement, but this is how Oregon state legislature spells it) to provide forestation activities.
Property services contractors are individuals receiving compensation for employing, recruiting, soliciting, or supplying employees to provide janitorial services for another. They only need one surety bond and license per business, regardless of the entity type and number of owners/partners.
Farmworker camp operators, which receive an indorsement in addition to the farm labor contractor license, are persons operating and maintaining farm worker camps. Farm worker camps are areas of land used for the sole purpose of providing housing to employees of farm/forest labor contractors.
What is the Bond Filing Process?
With Jet, the process is easy - we do it all! An original bond must be on file with the BOLI for the entire duration a labor contractor is licensed and doing business. The bond should be signed by the business owner(s) and surety bond agency’s attorney-in-fact which we handle during your bond check out and send to the BOLI for you.
New applicants typically will have other paperwork to get on file prior to receiving the license. In that case Jet will send the bond form to you to be submitted with all other paperwork and fees to be sent to the following address:
Bureau of Labor and Industries
Wage and Hour Division, License Unit
1400 S.W. 5th Avenue, Rm. 306
Portland, OR 97201
How To Handle Oregon Labor Contractor Violations
Complaints can be filed with the BOLI for working condition violations or payroll practices that violate the wage and hour requirements.
- Recruiting, employing, soliciting, or supplying an employee without proper licensure
- Not complying with executed contracts
- Failure to provide proof of earnings and deductions
- Not obtaining workers’ compensation insurance
If complaints are not addressed by the labor contractor, the BOLI may consider a civil penalty. A civil penalty of up to $2,000 may be evaluated for a number of violations, including:
Pursuant to ORS 658.405 to 658.503 and 658.991, the BOLI has the right to suspend or revoke renewal of a labor contractor license if violations are not corrected.
Past the point of a complaint and civil penalties, if the labor contractor fails to fulfill the BOLI’s request to respond to the incident a bond claim may be pursued.
What Is Jet’s Bond Claim Process?
Any individual who incurs loss of wages has a right of action to file a claim against the labor contractor surety bond. If proved valid, Jet will pay the claimant up to the full bond limit of either $10,000 or $30,000.
Complaints and bond claims must be proved justifiable by the BOLI before any action toward the labor contractor license is taken. If a violation by the contractor reaches the point of a bond claim, Jet’s claims team will make the process seamless for all parties involved. The following steps are taken for Labor Contractor Bond claims in Oregon:
- Receive notice of the claim and inform the BOLI
- Investigate the validity of the claim
- Valid claims lead to Jet paying out the claim amount up to the bond limit
The labor contractor must reimburse Jet for any bond claim payouts.
The BOLI has jurisdiction to revoke, suspend, or refuse renewal of a labor contractor’s license if the contractor has violated or not complied with provisions of ORS 658.405 to 658.503, in addition to ORS 658.991.
Why Does the BOLI Require the Labor Contractor Bond in Oregon?
All labor contractors must carry a surety bond with the BOLI to ensure financial protection for workers hired by the contractor(s). The bond provides compensation for workers that have fallen victim to contractors violating ORS 658.415 or ORS 658.419. The State of Oregon wants to protect people who have been contracted to work and ensure they are paid their fair dues.
How To Get the Oregon Labor Contractor Bond
To get the Labor Contractor Bond in Oregon, business information needs to be verified through our online system. This includes license number, business name, license expiration, and address. Select Purchase Now below and get it done in minutes!
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If the bond needs to be for a shorter term, Jet will provide you with a monthly payment option that is prorated so you can avoid paying for a full year.
Does the Labor Contractor Bond Expire?
Yes, the Labor Contractor Bond does expire. Per the BOLI, the bond expiration date must align with the license expiration date. Jet offers one-, two-, and four-year surety bonds to ensure the bond expiration lines up with your license expiration. Jet can also prorate bond terms simply with our monthly payment options should the need ever arise. At that time Jet will send a renewal notice to you with plenty of time to make payment for the upcoming term.
Bond Reduction for Labor Contractors
Entities with multiple licensees that have been licensed for one year or more may apply for a reduction in the aggregate bond amount. To qualify, the applicants must not have any prior or current bond claim activity. The BOLI will decide whether or not to reduce the aggregate bond amount to equal the amount required for only one of the licensees.
Contractors with 21 or more employees who have been licensed for two or more years consecutively can also apply for a reduction in the bond amount. The BOLI will make sure there are no prior or current valid violations for unpaid wages. Upon approval, the bond amount can be reduced as follows:
| Time licensed | bond amount |
|---|---|
| After 2 years | $27,500 |
| After 3 years | $25,000 |
| After 4 years | $22,500 |
| After 5 years | $20,000 |
Bond reductions are not available for employers with fewer than 21 employees.
