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Marion Today
By the People, for the People
Oregon Judge Rules Kotek's Union Labor Order Unconstitutional
The governor's executive order requiring project labor agreements on state construction projects is struck down.
Mar. 13, 2026 at 6:10pm
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A Marion County judge has ruled that Oregon Gov. Tina Kotek's executive order requiring union labor on many state construction projects is unconstitutional. The order, issued in December 2024, was challenged by a coalition of construction firms who argued the governor overstepped her authority. The judge agreed, finding the order violated the separation of powers by encroaching on the legislature's lawmaking powers.
Why it matters
The ruling is a setback for Kotek, who had championed the order as a way to ensure fair, living-wage jobs on state projects. Opponents argued the order would hike costs by reducing competition from non-union firms. The decision comes as the Oregon Department of Transportation faces budget challenges, with internal analyses suggesting project labor agreements can add 10-20% to construction prices.
The details
Issued in December 2024, Kotek's executive order required state agencies to use project labor agreements (PLAs) on many construction projects where onsite labor costs make up at least 15% of expenses. PLAs are agreements between project owners and labor unions that set working conditions. Critics argued PLAs discourage bids from non-union firms, leading to higher costs. A coalition of construction firms sued, saying Kotek overstepped her authority. The judge agreed, ruling the order unconstitutionally encroached on the legislature's lawmaking power.
- In December 2024, Kotek issued the executive order requiring PLAs.
- In February 2025, a coalition of construction firms filed a lawsuit challenging the order.
- In March 2025, a judge blocked the order from taking effect while the case played out.
- On March 13, 2026, the judge issued a final ruling striking down the order as unconstitutional.
The players
Tina Kotek
The governor of Oregon who issued the executive order requiring union labor on state construction projects.
Thomas Hart
The Marion County judge who ruled Kotek's executive order unconstitutional.
Association of General Contractors
The construction industry group that led the coalition suing to block Kotek's order.
Oregon Department of Transportation
The state agency facing budget challenges that could have been impacted by the use of project labor agreements on construction projects.
What’s next
The Oregon Department of Justice said it is considering its options following the judge's ruling against Kotek's executive order.
The takeaway
This ruling is a setback for Gov. Kotek's efforts to use her executive power to shape labor policies on state construction projects. The judge's decision that she overstepped her authority highlights the ongoing tensions between the executive and legislative branches over the scope of the governor's powers.
