Oregon labor bureau audit cites poor management for backlog of wage, civil rights claims

A pattern of ill-advised management decisions reflecting “strategic neglect” and an ongoing lack of resources have fueled the backlog of thousands of worker complaints made to Oregon’s top labor rights enforcement agency, according to a Thursday audit by the Oregon Secretary of State’s Office. 

The 31-page review of the Oregon Bureau of Labor and Industries found the agency “failed to implement key management principles to the detriment of Oregonians.” It noted that the labor bureau lacked clear documentation of its plans, operated with outdated software, failed to comply with federally-mandated reviews of apprenticeship programs and struggled to stabilize its policies in the wake of internal staff turnover. 

Auditors offered 10 recommendations for the agency, which requested the audit in 2023. Suggestions include creating a plan for transitions between elected commissioners, centralizing agencywide policies, alleviating the stress of burdened staff and establishing public reports for backlogged cases through an online website or other means.

“When agency management took action to reduce the wage and hour intake backlog, they also failed to plan for the full impact of the decision on their own staff and the Oregonians they serve,” the report reads. “The effort spanned multiple months and all wage and hour division staff, including managers, were assigned to help intake staff return phone calls and process forms. While these efforts were well-intended, they confused and overwhelmed staff.”

Secretary of State Tobias Read said in a Thursday statement that the agency “must do better” and begin with fixing managerial issues that make it harder to enforce Oregon’s worker protections, which are some of the strongest nationwide. He commended the work of U.S. Rep. Val Hoyle, who served as Oregon’s labor commissioner from 2019 to 2023, while suggesting the agency still has a long way to go.

“Our economy is failing everyone but the ultra-wealthy. Unemployment is ticking up, inflation is squeezing family budgets, and our federal government is just making things worse for Oregonians,” Read said. “This isn’t about pointing fingers or placing blame. The push for critical investments that started with then-Commissioner Val Hoyle and continues today under current leadership is important.”

The labor bureau has historically served as a key resource for Oregonians who lack the money for a lawyer, despite its struggle to clear a backlog of cases alleging civil rights violations and wage theft. The number of Oregon workers per labor bureau employee has nearly quadrupled since the 1980s, and a buildup of cases in October 2024 led the agency to announce that it would not investigate wage theft claims for workers making over $52,710 annually or $25.34 per hour. 

Current Labor Commissioner Christina Stephenson removed that income threshold in October, after Oregon lawmakers added nearly $19 million to the agency’s two-year budget, a 30% increase. The labor bureau is also asking Oregon lawmakers for additional funding in the 2026 legislative session with the goal of clearing any civil rights investigation backlog by mid-2026, incoming wage theft reports by mid-2027 and the entire backlog of all wage and hour investigations by mid-2029. 

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As of August 2025, however, the audit says there were 2,500 wage and hour complaints awaiting review from intake staff and 2,084 claims pending investigation, all of which were to be handled by a total of 14 employees. More than 3,000 intake forms are pending review for civil rights investigations, which are under the purview of 16 employees. Auditors also said the agency lacks permanent positions for enforcing anti-discrimination laws for apprenticeship programs, for which there remain nearly 300 different standards to complete for compliance reviews. 

“Several individuals in the wage and hour division, civil rights division and administrative prosecution unit claim they are the only people trained to conduct work tasks that are key to their division’s success. They also noted that written policies and procedures are outdated and insufficient,” the 31-page report reads. “Ultimately, these tasks stop when they are absent.”

Read’s office also said that the agency “only created problems in other areas,” when it attempted to clear its backlog. In one case, the audit found that some staff began closing cases without a full investigation after they were instructed to follow up with employers for a written response to employee complaints. The agency informed workers their case was closed “due to lack of capacity” and sent them their employer’s response with the goal of assisting them in their own legal action.

“For many Oregonians, filing a claim or complaint with BOLI is their only recourse. They may lack the money to hire an attorney, or the ability and persistence to navigate a court system on their own,” the audit reads. “BOLI, like many government agencies, enforces critical laws that apply to all. When agencies start limiting services, like BOLI’s done by closing cases without a complete investigation, it can erode trust in government.”

In a Tuesday letter responding to the audit, Stephenson said that it was “immediately clear that the agency was facing numerous challenges” when she took over in 2023, pointing to a record level of filings leading to case backlogs in March 2023. Alongside the audit, she said the labor bureau has looked to national experts, other states and business and labor leaders to address its challenges.

She also agreed with all of the auditors’ recommendations. Those suggestions correctly identified areas of improvement, she wrote, attributing the issues to “the fact that leaders of this agency have been laboring in an extreme environment of scarcity.” 

“For example, while this administration took three years to draft a formal written strategic plan, in that same period it successfully executed an internal plan that resulted in the agency receiving the largest addition of staff to the agency ever,” Stephenson said. “Thanks to the support of business, labor, legislators, and the governor, the Bureau will have a fighting chance to address some of the significant backlogs affecting Oregon workers and businesses.”