House approves funding change to stabilize Bureau of Labor and Industries enforcement
February 27, 2026 | Legislative, Oregon
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House lawmakers approved a bill intended to stabilize funding for the Bureau of Labor and Industries (BOLI) and speed enforcement of wage and civil‑rights complaints. Representative Watanabe, the bill’s floor sponsor, said HB 4,027 A increases the prevailing‑wage fee cap from $7,500 to $12,500 and uses the worker benefit fund infrastructure to create a separate, sustainable revenue stream for BOLI.
Watanabe told colleagues the change will provide “a sustainable alternative funding source” and help resolve years‑long backlogs in wage‑theft and civil‑rights investigations. “Just 4 months after the money was allocated to them, BOLI has hired 34 positions and reclassified 30 of the 34 positions,” Watanabe said, arguing the bill builds on prior investments and is not a new general revenue measure.
Representative Munoz, who said his father experienced wage theft, urged support on moral and practical grounds, calling timely enforcement “what social justice looks like in practice.” Representative Wynne framed the measure as good for business as well as workers, saying consistent enforcement prevents law‑abiding employers from being undercut by bad actors.
Representative Graeber, a member of the bipartisan work group that shaped the bill, said the proposal reflected broad stakeholder input — including labor, business and the governor’s office — and noted the work group met eight times and considered more than 10 funding options. Representative Fragola said the bill preserves agency autonomy while creating resources and committed that the plan would go through the legislative budget process with reporting on hiring.
The clerk opened the voting system; HB 4,027, having received the constitutional majority, was declared passed.
Implementation details: the bill tasks the Department of Consumer and Business Services to collaborate with BOLI on rate‑setting. The session record includes an LC (legal counsel) opinion placed on members’ desks asserting the bill is not a new tax. The bill sponsor said the fee cap increase is consistent with a bipartisan approach taken by the Legislature in 2009.
Next steps: The measure was passed on final reading and will proceed to any subsequent enrollment and transmittal steps required by the legislative process.
Watanabe told colleagues the change will provide “a sustainable alternative funding source” and help resolve years‑long backlogs in wage‑theft and civil‑rights investigations. “Just 4 months after the money was allocated to them, BOLI has hired 34 positions and reclassified 30 of the 34 positions,” Watanabe said, arguing the bill builds on prior investments and is not a new general revenue measure.
Representative Munoz, who said his father experienced wage theft, urged support on moral and practical grounds, calling timely enforcement “what social justice looks like in practice.” Representative Wynne framed the measure as good for business as well as workers, saying consistent enforcement prevents law‑abiding employers from being undercut by bad actors.
Representative Graeber, a member of the bipartisan work group that shaped the bill, said the proposal reflected broad stakeholder input — including labor, business and the governor’s office — and noted the work group met eight times and considered more than 10 funding options. Representative Fragola said the bill preserves agency autonomy while creating resources and committed that the plan would go through the legislative budget process with reporting on hiring.
The clerk opened the voting system; HB 4,027, having received the constitutional majority, was declared passed.
Implementation details: the bill tasks the Department of Consumer and Business Services to collaborate with BOLI on rate‑setting. The session record includes an LC (legal counsel) opinion placed on members’ desks asserting the bill is not a new tax. The bill sponsor said the fee cap increase is consistent with a bipartisan approach taken by the Legislature in 2009.
Next steps: The measure was passed on final reading and will proceed to any subsequent enrollment and transmittal steps required by the legislative process.
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