New Oregon law requires cleaning service providers to be licensed

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Law targets sexual assault and sexual harassment in the workplace. Effective January 1, 2018, Oregon amended its labor contracting law to require those organizations that employ workers for the purpose of providing janitorial or cleaning services to other parties (i.e., building service contractors, residential cleaning service providers) to:
  • Be licensed as a Property Services Contractor by the Oregon Bureau of Labor and Industries (BOLI);
  • Provide professional training through or approved by BOLI to managers, supervisors and employees on:
    • Sexual assault and sexual harassment in the workplace
    • Prevention of workplace discrimination
    • “Whistleblower” protection afforded to those employees who report a violation of state or federal law by the employer
  • Pass a qualifying test designed to test applicant’s ability, knowledge, and proficiency to conduct business as a labor contractor, including a test of knowledge regarding the employer’s responsibility to prevent sexual assault or sexual harassment
  • In addition to Oregon labor contracting law, Property Services Contractor must also understand and comply with state, federal wage and hour and civil rights regulations.
Compliance Assistance.  Oregon BOLI has put together detailed compliance assistance in the form of a “handbook for property services contractors” that provides guidance on the:
  • Scope of coverage including FAQs on what entities are subject to the new law (as well as those that are NOT subject to the new requirements);
  • Detailed description of the license application process; and
  • Summary of select wage and hour and civil rights laws
In addition, BOLI has posted general information on the new requirements for Property Service Contractors at https://www.oregon.gov/boli. For more articles, subscribe to our newsletter!

FAQs

Q: What compliance issues should cleaning business owners monitor?

A: Cleaning businesses should monitor licensing, wage and hour rules, overtime eligibility, employee classification, workers’ compensation, insurance coverage, safety requirements, and state-specific employment laws. Requirements can change, so owners should confirm details with qualified legal or HR advisors.

Q: Why do labor rules matter for residential cleaning companies?

A: Labor rules affect pricing, scheduling, payroll, hiring models, profitability, and risk. Misclassifying workers or missing wage requirements can create back-pay exposure, penalties, lawsuits, and operational disruption.

Q: How can a cleaning company reduce compliance risk?

A: Document worker roles, pay practices, job expectations, safety procedures, insurance coverage, and policy acknowledgments. Review state and federal updates regularly and use professional payroll, HR, or legal support for classification and wage questions.

Author

  • Issa residential logo

    ISSA Residential (formerly ARCSI) is the premier division of the worldwide cleaning industry association, ISSA. It provides education, networking, and industry certifications specifically for residential house cleaning professionals and business owners.

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