OAR 839-015-0500
Action Against the Bond or Deposit

(1) Any person not paid wages owed to him/her by a labor contractor or any construction property owner, owner or property manager of property where janitorial services are or were to be performed, grower or producer of agricultural goods or owner or lessee of land intended to be used for the production of timber not paid advances due them by the farm or forest labor contractor has a right of action against the surety on the bond or deposit with the commissioner. The individual may exercise this right or may assign this right to another.
(2) The action on the bond or on the deposit held by the commissioner may not be joined in a suit or action on the bond or against the commissioner brought for any other claim.
(3) Any person seeking to recover on the bond or from the deposit with the commissioner must first establish the licensee’s liability. The liability may be established in any of the following ways:
(a) A judgment of the court;
(b) A final administrative order issued pursuant to statute or rule;
(c) The acknowledgment of the contractor of such liability;
(d) Other satisfactory evidence of liability as may be shown which establishes the liability.
(4) Claims against the bond or deposit will not be paid unless, within six months of the end of the period during which the bond or deposit applies, the claimant or claimant’s assignee gives notice of the claim by certified mail to the surety or the commissioner. Notice of claim shall be sufficient if it states that a wage claim is being made by the worker against the contractor, and it is not a defense to payment on the bond or deposit that the amount of the wage claim is not specified in the notice, or that the ultimate amount of wages found to be due is greater than the amount specified in the notice.
(5) Any claim or notice of claim filed pursuant to a claimant’s right of action must be filed as follows:
(a) If the filing is against a surety bond, the claim or notice must be filed with the surety. The name and address of the surety may be obtained from the Bureau of Labor and Industries, Wage and Hour Division, License Unit, 3865 Wolverine Street, NE, Bldg. E-1, Salem, OR 97305;
(b) If the filing is against a deposit held by the commissioner, the claim or notice must be filed with the Bureau of Labor and Industries, Wage and Hour Division, Farm Labor Unit, 3865 Wolverine Street, NE, Bldg. E-1, Salem, OR 97305.
(6) Except as provided in section (8) of this rule, the commissioner and the surety shall make payments on the bond or deposit in the following priority:
(a) Payments on wage claims;
(b) Payments on advances made to or on behalf of the contractor by a construction property owner, owner or property manager of property where janitorial services are or were to be performed, grower or producer of agricultural goods or an owner or lessee of land intended to be used for the production of timber;
(c) If there are insufficient funds to pay all wage claims in full, such claims will be paid in part;
(d) If there are insufficient funds to pay advances in full after all wage claims are paid, such advances will be paid in part.
(7) Except as provided in section (8) of this rule, in order to insure that all wage claims will be accorded priority treatment as required by ORS 658.415 (Application for license)(9)(a), the commissioner may delay any payments for advances claimed, until the expiration of the time within which wage claims may be submitted. The commissioner may make conditional payment based upon adequate security that subsequent wage claims will be paid.
(8) Any person who suffers any loss of wages from the employer of the person or any other loss due to activities of an agricultural association or private nonprofit corporation as a farm labor contractor shall have a right of action against the surety upon the bond or against the deposit with the commissioner. The right of action is assignable and may not be included in any action against the agricultural association or private nonprofit corporation but shall be exercised independently after first procuring adequate proof of liability as provided in section (3) of this rule.
(9) A member of any agricultural association that is required to be licensed under ORS 658.410 (Labor contractor license requirement) shall be jointly and severally liable for any damages, attorney fees, or costs awarded to any person for actions taken by the association in its capacity as a farm labor contractor if such actions were required, authorized, approved or ratified by the member.
(10) The surety company or the commissioner shall make prompt and periodic payments on the agricultural association’s or private nonprofit corporation’s liability up to the extent of the total sum of the bond or deposit. Payments shall be made in the following manner:
(a) Payment based upon priority of wage claims over other liabilities;
(b) Payment in full of all sums due to each person who presents adequate proof of the claim; and
(c) If there are insufficient funds to pay in full the person next entitled to payment in full, payment in part to the person.

Source: Rule 839-015-0500 — Action Against the Bond or Deposit, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=839-015-0500 (accessed May 26, 2025).

839–015–0000
Notice of Proposed Rule 839–015–0004
Definitions for Regulations Pertaining to Labor Contractors 839–015–0125
Contractors Must Obtain a License 839–015–0130
Exemptions from Licensing 839–015–0135
Issuance of License 839–015–0140
Licensing Requirements 839–015–0141
Licensing Requirements for Employees of Contractor/ Indorsements 839–015–0142
Use of Certain Agents Prohibited/Evidence of Sham or Subterfuge 839–015–0145
Character, Competence and Reliability 839–015–0150
Procedure for Obtaining a Temporary Permit 839–015–0155
Procedure for Obtaining a License 839–015–0157
Procedure for Obtaining Reduction in the Amount of Required Aggregate Bonding When More than One Individual Is Required to Be Licensed in One Entity 839–015–0160
Procedure for Obtaining a Duplicate License 839–015–0165
Procedure for Issuing or Renewing License 839–015–0170
Scope of Examinations 839–015–0175
Examination Requirements 839–015–0178
Grading of Examinations/Notice of Score 839–015–0180
Review of Examinations 839–015–0185
Re-Examination 839–015–0190
Substitution of Oregon Examination 839–015–0195
Alternative Methods of Examination 839–015–0200
Proof Required/Forms to Be Used for Bonds and Deposits 839–015–0210
Amount of Bond or Deposit to Be Filed 839–015–0220
Deposit in Cash or Negotiable Securities 839–015–0230
Procedure for Obtaining Reduction in the Amount of Bond or Deposit Required 839–015–0250
Protesting the Issuance of a License 839–015–0260
Procedure for Filing Protest 839–015–0300
Contractor to Submit “Wage Certification” Form 839–015–0310
Contractor to Furnish Statement of Worker’s Rights and Remedies 839–015–0320
Form of License 839–015–0350
Contractor to File Work Agreements between Labor Contractor and Farmers and Others 839–015–0355
Property Services Contractor Work Locations, Employee Counts and Demographic Information 839–015–0360
Contractor to File Work Agreements between Labor Contractor and Workers 839–015–0370
Contractor to Furnish Statement of Earnings and Statement of Prevailing Wage 839–015–0380
Professional Training for Managers, Supervisors and Employees of Property Services Contractors 839–015–0400
Records Required to Be Made and Maintained by Contractor 839–015–0410
Records Availability 839–015–0450
Notice of Compliance with Bond Requirements 839–015–0500
Action Against the Bond or Deposit 839–015–0502
Contractor to Pay Food and Lodging Expenses of Workers Who Travel Prior to the Availability of Employment 839–015–0503
Contractor to Pay Certain Transportation Costs 839–015–0504
Application of OAR 839-015-0502 and 839-015-0503 Limited 839–015–0505
Definitions for Civil Penalties 839–015–0507
Violations Separate and Distinct 839–015–0508
Violations for Which a Civil Penalty May Be Imposed 839–015–0509
Inspection of Contractor’s License or Temporary Permit 839–015–0510
Criteria for Determining a Civil Penalty 839–015–0512
Schedule of Civil Penalties 839–015–0520
Denying, Suspending, Revoking or Refusing to Renew License 839–015–0525
Immediate Suspension or Refusal to Renew a License 839–015–0530
Knowing Employment of an Alien Not Legally Present or Legally Employable in the United States 839–015–0600
Procedure for Filing Civil Action under ORS 658.453(4) 839–015–0605
Knowingly Using the Services of an Unlicensed Contractor 839–015–0610
Actions Under ORS 658.475 for Injunctive or Declaratory Relief and Damages

May 26, 2025

Rule 839-015-0500's source at or​.us