Affordable housing is a huge concern for people across the state. In fact, Gov. Tina Kotek has made the issue an important agenda item, recently appointing a workgroup to address barriers to creating more housing for hard-working Oregonians. As Kotek looks to limit red tape, we hope legislators in Salem will resist the temptation to add costly policies that would decrease investments in new housing or drive up costs.

Senate Bill 426, currently being considered by legislators in Salem, is one such policy.

While addressing the deplorable practice by unscrupulous contractors of failing to pay or underpaying their workers, SB 426 effectively lets those same bad actors off the hook by shifting liability to property owners and contractors who’ve done nothing wrong.

Both of us work every day with property owners who aim to provide Oregonians with access to housing. Oregon already has enough challenges creating housing that is affordable for working families, senior citizens and people living on fixed incomes. Policies such as SB 426 add new costs that make that harder and risk driving investments in workforce housing away from our state.

Wage theft – the practice of underpaying workers, failing to pay overtime, not providing required benefits and rest breaks, or stiffing workers on final paychecks – is a problem. There is no debate about that. Businesses that engage in wage theft should be held accountable for their actions. It’s really that simple. But we have to hold the guilty accountable, not let them pass the consequences on to others.

Even when property owners have paid contractors in full for their work, we’re still on the hook and liable for up to two years after a project is completed. Property owners could be asked to pay not just the unpaid wages but also fines, penalties, expensive legal bills and interest for subcontractors’ employees.

Shifting the cost to someone else rather than holding wrongdoers accountable serves as another incentive for shady businesses to shirk their responsibilities to their workers.

This will all add to the cost of housing as people on the frontlines of creating much needed housing supply face higher insurance and bonding costs, and new contract requirements to address these new risks. All of this will add to costs rather than hold the actual wrongdoers accountable.

These added insurance costs and contract requirements will also create another barrier for small and minority-owned businesses and startups – which is why organizations such as the National Association of Minority Contractors Oregon and Latino Built have both voiced opposition to the legislation.

Colorado Gov. Jared Polis, a Democrat, vetoed similar legislation last year, saying it “would let subcontractors who fail to pay their workers off the hook, do little if anything to prevent additional wage theft and penalize good actors who pay all their workers on time.”

We agree.

There are better ways to address this problem. The Oregon Bureau of Labor and Industries already has the authority to investigate and prosecute businesses that fail to pay employees. The real solution rests in ensuring the agency has the resources to speed up enforcement actions that get workers paid quickly, and streamlines the process for recovering unpaid wages without making workers go to the courts and rack up huge legal costs.

If BOLI lacks the staff and resource to carry out its mission, then additional funding should be allocated – along with more penalties against the actual wrongdoers to help cover the costs.

SB 426 means more risk and red tape for people creating much needed housing supply. It is sure to decrease investment in housing here in Oregon and drive up costs for families already struggling with rent. Local Chambers of Commerce, Realtors, and leading nonprofits and small business advocates also recognize these challenges, and oppose SB 426.

We hope Oregon legislators will do the same and reject this well-intentioned but poorly crafted proposal.

Brent Ellifritz lives in Eugene and is president of PG Long, a floor covering contractor working with property owners and managers throughout the Pacific Northwest. He’s a board member of Multifamily NW. Jessie Dhillon is vice president/co-owner of Carla Properties, a firm that builds, owns and operates multifamily housing properties in Oregon. She also serves as a board member of Multifamily NW.

Jessie Dhillon is vice president/co-owner of Carla Properties, a firm that builds, owns and operates multifamily housing properties in Oregon. She serves as a board member of Multifamily NW.