A Guide to Oregon – Labor Contractor Wage Payment Bond


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Definition of Oregon Labor Contractor Wage Payment Bond

What is a Labor Contractor Wage Payment Bond?

A Labor Contractor Wage Payment Bond, in essence, is an agreement between three parties: the principal (the labor contractor), the obligee (the entity requiring the bond – usually the state), and the surety company that issues and backs up financially this legal document.

This bond serves as a financial guarantee that labor contractors will abide by all laws relating to their profession and pay all wages due to employees working under them. It also protects employees from potential non-payment of wages or benefits promised by their employers.

Purpose of The Bond in Oregon

The purpose of such bonds in Oregon is essentially twofold. Primarily, it ensures wage protection for workers employed by labor contractors within this particular state. Secondarily, it enforces compliance with various legal stipulations related to employment practices among labor contractors operating within its jurisdiction.

Importance of Labor Contractor Wage Payment Bond in Oregon

Protection for Workers

One main reason why these bonds are important lies within the employee protection aspect they offer against any potential wage fraud committed by unscrupulous employers.

Legal Requirement for Labor Contractors

Another reason concerns its status as a mandated requirement imposed on all active labor contractors operating across this Northwestern American State per law.

How To Obtain a Labour Contracterage Payment Bond In Orgaon

Labor contractors wishing to obtain such bonds must follow some specific steps and adhere to the necessary documentation:

1) Apply through an authorized bonding agency or surety company.
2) Submit required documents which may include business details and financial statements.
3) Undergo the credit check process conducted by said authority or company.
4) Pay relevant fees upon approval after successful evaluation based on the above-mentioned points.

Cost Of Labour Contratorage Wagement payment Boand In Oragan

Factors affecting the cost

The cost of such bonds is typically affected by a variety of factors, which primarily include the contractor’s credit score and history, their financial strength and stability, plus the bond amount required.

Average cost in Oregon

Average costs for these bonds can range anywhere from 1% to 15% of the total bond amount depending upon the aforementioned factors.

Consequences Of Not Having A Labour Contractor Wage Payment Bond In Oregon

Legal implications

Not obtaining this mandatory bonding could result in serious legal ramifications including but not limited to fines or penalties imposed by state laws, suspension or revocation of license, etc.

Financial implications

Failure to secure this bond might also lead to substantial monetary losses arising due to potential lawsuits filed against offending contractors on the part of aggrieved employees.

How To File A Claim Against Labor Contratorage Wagement Payment Boand In Orgon

To file a claim against said type of bond involves going through several steps:

1) The aggrieved party must first provide a written notice detailing wages unpaid.
2) Submit all necessary documentation supporting their claims.
3) If valid & justified claims get approved then compensation gets paid out from that particular surety company backing up those bonds.


Who needs to obtain an Oregon Labor Contractor Wage Payment Bond?
Any labor contractor operating in Oregon who employs individuals and is responsible for paying their wages must obtain this bond. It’s a legal requirement designed to ensure that workers are paid their due wages and benefits in a timely and fair manner.

What does the Oregon Labor Contractor Wage Payment Bond cover?
The bond covers the payment of wages, salaries, and other benefits owed to employees by the labor contractor. If a contractor fails to pay their employees as agreed, a claim can be filed against the bond to seek compensation for the unpaid wages.

How can an employee file a claim against a Labor Contractor Wage Payment Bond in Oregon?
Employees or their representatives must provide written notice of the claim, detailing the unpaid wages or benefits, to the surety company that issued the bond. They must also submit any supporting documentation of the claim. The surety company will then investigate the claim and, if found valid, compensate the aggrieved employees up to the bond amount.


The Oregon Labor Contractor Wage Payment Bond plays a pivotal role in protecting the rights and wages of workers employed by labor contractors in Oregon. By ensuring contractors adhere to wage payment laws, this bond upholds the integrity of labor practices and provides a safety net for employees against wage theft. Labor contractors must prioritize obtaining and maintaining this bond to not only comply with legal requirements but also to foster a trustworthy working environment. As an essential component of Oregon’s labor landscape, the bond strengthens the bond between employers and employees, contributing to a fairer and more reliable labor market.


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