11-04-2025
Oregon Supreme Court declares ODOT's rules for ‘community workforce agreements' invalid
PORTLAND, Ore. () — The Oregon Supreme Court has ruled against the state transportation department in a case involving its enforcement of union labor requirements for certain projects.
The on Thursday that declared the Oregon Department of Transportation rule as invalid due to the process the agency used to establish it.
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The case follows the 2021 passage of , which allows contracting agencies to enact regulations that 'designate certain public improvement contracts as community benefit contracts.' The measure also called on ODOT to establish community workforce agreements, or CWAs, with labor organizations while drafting these contracts.
Court documents show the Oregon-Columbia Chapter of the Associated General Contractors of America sued the agency in January 2024, claiming that it had failed to give the labor union an opportunity to review the CWAs for eight different projects — although a few of its members were on the two advisory committees for the agreement.
The complaint also alleged that ODOT neglected to share the drafted agreement with either of its committees before it was finalized. AGC argued the department is legally required to comply with the rulemaking procedures under the federal Administrative Procedures Act.
In their recent opinion, Justice Bronson James and Justice Meagan Flynn said the transportation agency convened with its CWA Advisory Committee 11 times and twice with its Rules Advisory Committee. The justices commended the department's efforts to engage with stakeholders 'given the time constraints' — but they said it could have conducted even more outreach.
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'Despite all this input and work undertaken by all the different stakeholders, labor organizations, and ODOT to develop both the CWA and the community benefit contract rule and pilot program, the majority finds that the ODOT process for the current version of the CWA required more opportunity for notice and comment,' the Oregon Supreme Court wrote.
KOIN 6 has reached out to the agency for a statement.
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