Modular Building Institute Files Federal Lawsuit Against Oregon Prevailing Wage Expansion
This week, after a year and a half of good-faith effort and engagement with Oregon lawmakers and regulators, the Modular Building Institute (MBI) has sued the state of Oregon over its sweeping new prevailing wage law. The law, Oregon HB 2688, which was enacted on July 1, 2026, expands the definition of "public works" in Oregon state law to include certain types of off-site custom fabrication, assembly, and construction work performed specifically for public works projects. It also allows the state to apply its prevailing wage rates to offsite construction facilities outside the state of Oregon.
“HB 2688 and its implementing rule continue to present an unacceptable threat to the modular construction industry,” said Tom Hardiman, MBI’s executive director. “While MBI has always opposed expansion of prevailing wages to offsite factories, this law allowing Oregon to apply its labor rules to other states, or even other countries, is just too much.”
“MBI members support Oregon’s public infrastructure development,” added Hardiman, “but this blatantly unconstitutional, protectionist policy is a prime example of government overreach. On behalf of the industry, we look forward to resolving this important issue quickly and fairly.”
MBI is represented by the Pacific Legal Foundation. Please click below for more information on the lawsuit Modular Building Institute v. Christina Stephenson.
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Oregon tries to control work done entirely outside its borders
À propos de l'Institut de la construction modulaire
Founded in 1983, the Modular Building Institute is the international nonprofit trade association serving the commercial modular construction industry. As the Voice of Commercial Modular Construction®, MBI works to expand the use of offsite and modular construction through innovative construction practices, advocacy, education and recognition of high-quality modular designs and facilities.