Oregon’s prevailing wage rate law, sometimes referred to as the “Little Davis-Bacon Act,” has been in place in some form since 1959. Under the law, contractors that perform work on “public works” projects are required to pay workers at least the prevailing wage rate as determined by the Oregon Bureau of Labor and Industries (BOLI). A public works project is any project administered by a public agency that costs more than $50,000, or that uses at least $750,000 of public agency funding.

Previously, and with some narrow exceptions, prevailing wage was required only for work performed on the project site. However, starting July 1, 2026, contractors that work on public works projects in Oregon will now be required to pay prevailing wage for certain off-site bespoke work. This shift is the result of House Bill 2688, which was adopted by the Oregon Legislature during the 2025 session and signed into law by Gov. Tina Kotek on July 31, 2025.

Specifically, HB 2688 expanded the definition of “public works” to include“fabrication, assembly, preconstruction or construction that is: (i) bespoke; (ii) performed offsite; (iii) performed specifically for, and in accordance with thespecification of, a (public works project); and (iv) performed on (certain systems and components).” Examples of the systems and components referred to in the bill include mechanical systems, such as HVAC systems; electrical systems; ornamental and structural ironwork; and masonry and plaster systems or...

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