On December 19, 2024, Oregon Governor Tina Kotek publicly announced Executive Order No. 24-31 (“PLA Executive Order”), requiring Project Labor Agreements (PLAs) on nearly all state construction projects in Oregon. Here’s a breakdown of its key points:
- Mandatory Use of PLAs, where labor costs represent 15% or more of total costs.
- Contractors and subcontractors must agree to a PLA for these projects, ensuring the involvement of labor organizations.
- The PLA Order requires “every contractor and/or subcontractor engaged in construction of the project to agree, for that project, to negotiate or become a party to a project labor agreement with one or more appropriate labor organizations.”
- Equity in Contracting Through PLAs
- State agencies must set goals for using certified diverse businesses, tracking progress, and reporting data to promote racial and gender equity.
- There are requirements to track labor data to ensure inclusivity by utilizing a payroll system or equivalent for reporting.
- PLA Required Terms
- The PLA must guarantee no strikes, lockouts, or other disruptions, with mechanisms in place to resolve disputes quickly.
- It should promote cooperation on productivity, safety, and quality issues.
- PLAs must comply with all relevant federal and state laws.
- Must not exclude open-shop or local firms.
- Exemptions to PLAs
- Certain projects are exempt from PLAs, such as those where no public funds are used; emergency projects, minor repairs, and maintenance; or short-duration projects with limited complexity, or involve one craft or trade.
- Agency directors can request an exemption from the Governor before the contract is advertised.
- Implementation:
- The order is effective immediately for contracts awarded from this date onward.
- Solicitations and contracts that are planned for advertisement but have not been awarded can opt for the exemption until March 31, 2025.
This article summarizes aspects of the law and opinions that are solely those of the authors. This article does not constitute legal advice. For legal advice regarding your situation, you should contact an attorney.
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