Rep. Scharf: Bill punishes manufacturing

By Representatives Lucetta Elmer, Boshart Davis, and Anna Scharf
April 7, 2025

House Bill 2688 passed along party lines in the House Labor & Workplace Standards Committee which would vastly increase the scope of prevailing wage in Oregon and beyond. Currently, prevailing wage applies to construction work that occurs on the jobsite. This bill would drastically expand that by requiring prevailing wage on a variety of “bespoke” or custom-made products, used in everyday construction. This encompasses critical infrastructure from sewer pipes to streetlamps, to highway signage.

As recently covered by Willamette Week, certain affordable housing projects are subject to prevailing wage requirements and are dramatically impacted as a result, adding 10-20% on top of a project’s overall price tag. House Bill 2688 adds another layer of complexity and cost.

It is unclear how this legislation would be enf0rced, considering it applies to all manufacturers worldwide, and as a result, what cost implications that level of enforcement would have on the Bureau of Labor and Industries (BOLI), an agency already underfunded. If it is determined that BOLI is unable to enforce these new requirements on out-of-state manufacturers, it will only create additional burdens on Oregon manufacturers. According to Oregon’s State Economist, Oregon has already entered a manufacturing sector recession.

“There is a reason the League of Oregon Cities, Association of Oregon Counties, Special Districts Association of Oregon, and Oregon School Boards Association are all opposed to House Bill 2688. This legislation will drive up costs on critically needed infrastructure projects and make life more expensive for Oregonians as a result,” said Vice Chair Lucetta Elmer (R-McMinnville).

“As Democrats are eyeing a multi-billion-dollar tax increase to pay for ODOT’s transportation projects, we cannot move harmful legislation like House Bill 2688. This will make building and maintaining our roads and bridges more expensive, while harming Oregon manufacturers in the process,” said Representative Shelly Boshart Davis (R-Albany).

“As someone who has worked in the manufacturing space, I know exactly what this bill will do – this is going to drive more businesses away. Why would you buy something in Oregon when you can go somewhere else and get it cheaper? There is a reason we are calling this the Oregon Manufacturing Punishment Bill,” said Representative Anna Scharf (R-Amity).

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