ORS 658.410
Labor contractor license requirement
- issuance
- rules
(1)
Except as provided by ORS 658.425 (Temporary permit pending issuance of license) and subsection (3) of this section, a person may not act as a labor contractor without a valid license in the person’s possession issued to the person by the Commissioner of the Bureau of Labor and Industries. Except as provided in subsection (3) of this section, a person may not act as a farm labor contractor with regard to the forestation or reforestation of lands unless the person possesses a valid farm labor contractor’s license with the indorsement required by ORS 658.417 (Additional requirements for forestation activities) (1). The Bureau of Labor and Industries shall make rules for the issuance of duplicate licenses in the event of the loss or destruction of original licenses.(2)
Labor contractor licenses may be issued by the commissioner only as follows:(a)
To a natural person operating as a sole proprietor under the person’s own name or under an assumed business name registered with the Office of Secretary of State.(b)
To two or more natural persons operating as a partnership or as a limited liability partnership under their own names or under an assumed business name registered with the Office of Secretary of State.(c)
Except as provided in subsection (3) of this section, to the majority shareholder or majority shareholders of a corporation or a limited liability company that is licensed to operate as a labor contractor.(d)
Except as provided in subsection (3) of this section, to a corporation or a limited liability company whose majority shareholder or majority shareholders are also licensed to operate as a labor contractor and that is authorized to do business in Oregon by the Office of Secretary of State.(e)
To a cooperative corporation authorized to do business in Oregon by the Office of Secretary of State.(f)
To a private nonprofit corporation authorized to do business in Oregon by the Office of Secretary of State and designated by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code, provided:(A)
Intentionally left blank —Ed.(i)
The purpose of the corporation is to provide education or training; and(ii)
Workers recruited, solicited, supplied or employed by the corporation are recruited, solicited, supplied or employed only for the purpose of educating or training the workers in construction, in the forestation or reforestation of lands or in the production or harvesting of farm products; or(B)
For at least five years before the corporation files an application for a labor contractor license, the corporation has been:(i)
Authorized to do business in Oregon by the Office of Secretary of State;(ii)
Primarily engaged in recruiting, soliciting, supplying or employing workers; and(iii)
Designated by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code.(g)
For a farm labor contractor license only, to an agricultural association that is authorized to do business in Oregon by the Office of Secretary of State.(h)
For a property services contractor license only:(A)
To any of the business entities described in paragraphs (b) to (f) of this subsection, provided that each entity includes with the application for a license under ORS 658.415 (Application for license) the names and addresses of one or more individuals who are responsible, financially and otherwise, for fulfilling the entity’s obligations consistent with the provisions of ORS 658.405 (Definitions for ORS 658.405 to 658.511) to 658.511 (Wage claim against property services contractor or construction labor contractor).(B)
To a private nonprofit corporation authorized to do business in Oregon by the Office of Secretary of State and designated by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code provided that the corporation is primarily engaged in recruiting, soliciting, supplying or employing workers.(3)
The majority shareholder or majority shareholders of a corporation or limited liability company are not required to be licensed under this section if the corporation or limited liability company:(a)
Intentionally left blank —Ed.(A)
Publicly trades its shares of stock on a stock exchange regulated by the United States Securities and Exchange Commission; or(B)
Has 10 or more shareholders and demonstrates to the satisfaction of the commissioner that the corporation or limited liability company is adequately capitalized; and(b)
Is authorized to do business in Oregon by the Office of Secretary of State. [1959 c.395 §2; 1961 c.390 §2; 1983 c.476 §1; 1983 c.654 §4; 1989 c.164 §2; 1999 c.628 §2; 2001 c.178 §1; 2013 c.584 §4; 2018 c.8 §2]
Source:
Section 658.410 — Labor contractor license requirement; issuance; rules, https://www.oregonlegislature.gov/bills_laws/ors/ors658.html.
Notes of Decisions
Failure of farm labor contractor to have license does not cause contract with third party using contractor’s services to be illegal and unenforceable as contrary to public policy. Mayfly Group, Inc. v. Ruiz, 208 Or App 219, 144 P3d 1025 (2006), Sup Ct review denied
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