Starting January 1, 2026, Oregon’s construction industry will operate under a fundamentally different risk model.

Oregon Senate Bill 426 (SB 426) expands wage liability beyond employers and places new legal responsibility on property owners and general contractors for unpaid wages owed to subcontractor employees — even at lower tiers.

For owners and GCs, this law isn’t just a compliance update. It’s a shift in how workforce risk must be managed on every jobsite.

This article breaks down what SB 426 requires, why traditional approaches fall short, and how modern workforce visibility platforms like Eyrus help contractors and owners adapt.

What Is Oregon SB 426?

SB 426 establishes joint and several liability for unpaid wages in construction.

In practical terms, that means:

• Property owners and direct (prime) contractors can be held legally responsible for unpaid wages owed by subcontractors

• Liability can apply to any tier of subcontractor

• A worker does not need to prove that the owner or GC knew about the wage issue

• Claims may include wages, penalties, interest, and legal fees

The law is designed to combat wage theft, but its operational impact extends far beyond payroll.

Who Is Covered Under SB 426?

SB 426 applies to:

• Most commercial and residential construction projects in Oregon

• Unrepresented workers (those not covered by a collective bargaining agreement with a wage dispute process)

• Subcontractors at any tier

Certain small owner-occupied residential projects are exempt, but for most owners and GCs working at scale, SB 426 squarely applies.

Why SB 426 Changes the Risk Profile for Owners and GCs

Historically, owners and GCs managed labor risk through:

• Contracts and indemnification

• Certified payroll submissions

• Trust-based subcontractor relationships

SB 426 makes that approach insufficient.

Under the new law, owners and GCs are liable regardless of intent or direct control. That creates a gap between legal responsibility and operational visibility:

• You may be responsible for workers you never hired

• For wages you never paid

• Based on activity you never directly observed

Closing that gap requires better data, not better contracts.

Why Payroll Records Alone Aren’t Enough

Certified payroll is still important — but it only tells part of the story.

Payroll systems typically cannot answer:

• Who was physically on site on a given day

• Which subcontractor employed that worker at that moment

• Whether the worker was properly onboarded and verified

• Whether access aligned with approved scopes and schedules

In a wage claim, those questions matter. SB 426 increases the likelihood that owners and GCs will need to defend claims with proof, not assumptions.

How Eyrus Helps Owners and GCs Reduce SB 426 Exposure

Eyrus is not a payroll system. It is a workforce visibility and verification platform designed for construction jobsites.

Under SB 426, that distinction matters.

1. Verified Workforce Onboarding

Eyrus ensures that every worker on site is:

• Properly registered

• Linked to an employer of record

• Verified before access is granted

This creates a defensible record of who was authorized to work, for whom, and when.

2. Real-Time and Historical Site Presence Data

Eyrus provides:

• Live headcounts by subcontractor

• Time-stamped access history

• Site-specific presence records

If a wage claim arises, owners and GCs can quickly determine:

• Whether the worker was actually on site

• The relevant dates and durations

• Which subcontractor tier was responsible

3. Centralized Compliance Documentation

SB 426 allows owners and GCs to request workforce records from subcontractors.

Eyrus centralizes:

• Worker identity and employer data

• Certifications and training status

• Historical access and presence logs

This reduces reliance on email chains, PDFs, and manual record chasing — especially during a notice-and-cure window.

4. Early Risk Detection Across Subcontractors

Because Eyrus provides visibility across all subcontractor tiers, teams can:

• Identify unusually high headcounts

• Spot misaligned access patterns

• Flag subs that consistently struggle with onboarding or compliance

That allows corrective action before issues escalate into claims.

Why Owners Are Paying Attention

SB 426 doesn’t stop at the GC level. Owners are now directly exposed.

As a result, many owners are beginning to:

• Require workforce visibility systems

• Mandate standardized onboarding and access control

• Expect audit-ready documentation across all projects

Platforms like Eyrus are increasingly becoming conditions of award, not optional tools.

Preparing for SB 426 Starts on the Jobsite

SB 426 makes one thing clear:
You can’t manage construction labor risk with contracts alone.

Owners and GCs need:

• Clear visibility into who is on site

• Verifiable links between workers and employers

• Reliable historical records when claims arise

Eyrus helps teams meet those needs by turning workforce data into a defensible system of record — reducing uncertainty, exposure, and disruption.

Final Thought

SB 426 raises the stakes, but it also rewards contractors and owners who invest in visibility and accountability.

The question isn’t whether risk has increased — it has.
The question is whether your jobsite data is strong enough to protect you when it matters.