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Testimony splits as committee considers making deliberate wage theft a felony; drafters promise narrowing amendments

House Committee on Labor and Workforce Development · February 4, 2026
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Summary

Supporters including labor unions and worker advocates urged HB 40 89 to criminalize intentional wage theft and authorize agency referrals to prosecutors; business groups, public safety stakeholders and district attorneys warned the current draft is overbroad, lacks clear mens rea and could criminalize ordinary mistakes. Drafters said amendments are forthcoming.

The House Committee on Labor and Workforce Development opened a public hearing on House Bill 40 89 on Feb. 4, a measure that would expand the definition of theft of services to include certain forms of wage theft and make knowingly using unlicensed labor contractors a class C felony punishable by up to five years in prison and a $125,000 fine.

Sponsor Rep. Thuy Tran framed the bill as a tool to address persistent wage theft across multiple industries and populations that face barriers to civil enforcement. Labor organizations and worker advocates — including the Western States/North Coast Carpenters, the Urban League of Portland, Northwest Workers' Justice Project and the Oregon Farmworker…

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