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Construction Labor Contractors

Any person or entity that recruits, solicits, supplies or employs workers to perform labor in construction for an agreed rate of pay must have a valid Construction Labor Contractor License.

Apply for a license

Reporting requirements

Certified payroll reports are due no later than 35 days after starting work on each contract and at each successive 35 day interval thereafter. Construction labor contractors may submit certified true copies of payroll records in person, by regular mail or via email.

Learn more about certified payroll reports.

Helpful forms and documents

If you think your employer is violating this law, you can make a complaint or contact us to get help.

Frequently asked questions

For workers

What additional rights do I have as an employee of a construction labor contractor?

A licensed labor contractor has a duty to: 

  • Comply with the terms and provisions of all legal and valid agreements or contracts entered into in the contractor’s capacity as a labor contractor 
  • Furnish to each worker at the time of hiring, recruiting, soliciting or supplying, whichever occurs first, a written summary of the terms and conditions of employment in English and any other language used by the contractor to communicate with workers 
  • Execute a written agreement between the worker and contractor at the time of hiring and prior to the worker performing any work for the contractor containing the terms and conditions of employment (both in English and any other language used by the contractor to communicate with the worker) 
  • Furnish to each worker at the time the worker is paid, a written statement itemizing the total amount paid, amount and purpose of each deduction, the hours worked and rate of pay, (or piece rate and number of pieces done if the work is done on a piece rate basis), and information regarding work done under the federal Service Contract Act or related federal or state laws if applicable.
I work for a construction contractor licensed through the Construction Contractors Board (CCB). Does this law affect me?

Not likely. However, if your employer sends you to perform construction labor for another, on a job site where your employer does not, for example, have a construction contract, has not obtained building permits, etc., and receives compensation for this, then your employer would need a construction labor contractor license as well.

For contractors

Who is a construction labor contractor?

In general, a construction labor contractor (or “CLC”) includes anyone who receives compensation for recruiting, soliciting, supplying or employing workers to perform labor for another in construction. This includes anyone who performs these activities for his or her employer, as well as those who subcontract with another to perform the activities of a CLC. ORS 658.405 & OAR 839-015-0004. Note: A person is acting as a CLC (and would need a license) even when that person does not directly employ the workers so long as the person is soliciting or supplying the workers to someone else for pay or profit. That said, the law defining a CLC excludes several entities that would otherwise be required to obtain a license.

Who is not a construction labor contractor?

The following entities would not be considered labor contractors and therefore do not need to obtain a construction labor contractor license: 

  • A person that has a construction contract with an owner of real property where the construction work is performed; 
  • A person that has obtained building permits to perform construction work; 
  • A person that supplies building materials or machinery, other than manual tools or hand-operated power tools, for a construction project; 
  • An owner of real property engaged in the solicitation or recruitment of persons to perform construction work on the owner’s property; 
  • The Employment Department; 
  • A crew leader; 
  • Individuals who perform labor pursuant to an agreement for exchanging their own labor or services with each other, provided the work is performed on land owned or leased by the individuals; 
  • An educational institution that is recognized as such by the Department of Education; 
  • A labor union; 
  • A local joint apprenticeship committee formed under ORS 660.135; or 
  • A staffing agency whose primary purpose is to provide workers to the client employers of the agency, typically representing a range of industries, under the terms of a client agreement, if the agency provides workers’ compensation coverage for all employees as required by ORS chapter 656 and pays employment and income taxes in accordance with applicable law.
Does the CLC law apply to temporary and leasing agencies?

No. A bona fide staffing agency (meaning one that provides workers to multiple clients who represent a range of industries under the terms of a client agreement, provides required workers compensation coverage and pays employment and income taxes) is excluded from the definition of a construction labor contractor.

Do I need a CLC license if I do not accept any form of compensation from the employer for the workers I supply to another?

If you perform the activities of CLC by recruiting, soliciting or supply workers for compensation from anyone (not merely the employer) you need a license.

Do I need a CLC license if I recruit or supply workers to another but that person actually hires the workers and does the payroll?

Yes. It makes no difference whether you directly hire and pay the workers whom you recruit and supply, or whether you merely recruit and supply workers to another who then employs the workers. Under both situations you need a license.

Does the CLC law apply to my employee who helps me with my own contracting activity?

The definition of a construction labor contractor under Oregon Revised Statute 658.405 includes “any person… who recruits, solicits, supplies or employs workers on behalf of an employer engaged in construction.” Persons who engage in these activities are required to first obtain a construction labor contractor’s license. In addition, ORS 658.411 requires employees of construction labor contractors who engage in these activities to also be licensed. Thus, if you have any of your own employees recruiting, soliciting, supplying, or employing other workers on your behalf, then such employees must first obtain a construction labor contractor’s license with an employment indorsement. To obtain an indorsement for your employee, the employee must complete a license application (WH-37) and submit it to the Bureau along with a Sponsorship Statement form (WH-36) from you indicating that you are sponsoring the employee under your own license. The employee must also take and pass the labor contractor written exam and meet all other conditions for obtaining a labor contractor license except that the employee is not required to provide financial security or workers’ compensation coverage. This is because you, as the employer, have agreed by sponsoring the employee to be liable for your employee’s acts under your own bond and insurance coverage. By sponsoring the individual, you also agree to be jointly and severally liable for actions the sponsored employee takes under color of the employee’s indorsement.

I am a licensed construction contractor. Do I need to comply with the CLC laws?

If you meet the requirements for exemption from the definition of a CLC (see above on “Who is not a construction labor contractor,”) you do not need a CLC license. However, if you send your crew to perform construction labor for another on a job site where you do not, for example, have a construction contract and you have not obtained building permits, etc., and you receive compensation for this, then you are acting as a construction labor contractor and, yes, you would need a license. Also, any construction contractor who knowingly uses the services of an unlicensed CLC is personally, jointly and severally liable with that person for any unpaid wages and other damages as provided by law, including costs and reasonable attorney fees in connection with any actions initiated to recover such amounts. (ORS 658.465; OAR 839-015-0605)

If I supply or employ workers to perform construction work outside of the state of Oregon do I still need to comply with all the Oregon labor contractor laws and regulations?

Yes. So long as you are recruiting, soliciting, supplying or employing workers from the state of Oregon, then you need to comply with Oregon construction contractor laws and regulations no matter where the actual workplace is located, including filing certified payroll forms.

If I supply building materials like screws, nails, drywall mud and tape along with the drywall crews I contract out, do I still need to get a license?

Yes. The exemption from licensure for a person that supplies building materials or machinery, other than manual tools or hand-operated power tools, for a construction project applies to those who are making a substantial investment in the project. Supplying structural building materials such as drywall panels, lumber, or concrete would be a substantial investment in the construction project. Supplying incidental materials like screws, nails, drywall mud, safety goggles and the like is not a substantial investment in the project.

If you have questions you can contact whdscreener@boli.state.or.us or call 503-373-1463.



Disclaimer: This website is not intended as legal advice. Any responses to specific questions are based on the facts as we understand them and the law that was current when the responses were written. They are not intended to apply to any other situations. This communication is not an agency order. If you need legal advice, please consult an attorney.​


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