Almost a full year since Marion County Circuit Judge Thomas Hart issued a temporary halt on Gov. Tina Kotek’s executive order forcing state agencies to negotiate project labor agreements (PLAs) on all construction projects overseen by the state, he made his decision permanent on March 12, ruling her action unconstitutional.

“Thursday’s ruling makes that decision final,” reported Oregon Public Broadcasting. “The lawsuit against Kotek’s order hinged on whether the governor could lawfully issue the PLA order. Plaintiffs in the suit said she had gone too far, issuing a decree that crossed the bounds of her executive power into the law-making power of the Legislature.”

Reported The Oregonian, “Kotek’s December 2024 executive order would have mandated that state agencies negotiate and sign so-called project labor agreements with contractors on essentially all construction projects overseen by the state, such as seismic upgrades to a bridge.”

Defeat of Kotek’s executive order was a big win for NFIB and its coalition partners, free enterprise and fair competition.  Commenting on the judge’s initial decision last March, Anthony Smith, state director for NFIB in Oregon, said, “NFIB’s small business members welcome Judge Hart’s decision. They’re looking forward to continuing to bid on public projects – and get them built. There are limits to executive power and we’re grateful to the court for this acknowledgment.”

According to a February 21, 2025, jointly issued news release announcing the legal challenge, “studies have shown that union-only PLAs needlessly increase construction costs by 13 to 20 percent, while not increasing wages or worker benefits. The Willamette Week newspaper uncovered an analysis by the Oregon Department of Transportation (ODOT) that found that requiring PLAs on the agency’s projects would increase taxpayer costs 10-20%.”

According to the 2024 NFIB Tax Survey, small-business-owning members in the construction industry accounted for the third most of the total membership (15.8%), just behind agricultural businesses (16.6%) and services (23.4%).