Secretary of State Auditors Find Structural Problems, Management Gaps at the Bureau of Labor and Industries Leave Oregon’s Workers to Fend for Themselves

Longstanding structural problems and management gaps at Oregon’s Bureau of Labor and Industries (BOLI) have left many Oregon workers waiting years for help with wage and workplace complaints, according to an audit released today by the Secretary of State Audits Division.

“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,” said Secretary of State Tobias Read. “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. But the agency must do better, starting with fixing management mistakes that make it harder for the agency to enforce Oregon’s worker protections. By implementing these audit recommendations, BOLI can ensure they make the most of the new investments from the Legislature, reduce the backlog, and live up to their promise to protect Oregon workers.”

There is a well-known backlog problem across all of BOLI’s divisions. However, auditors found the agency’s efforts to address the backlog only created problems in other areas. For example, BOLI concentrated efforts to reduce the backlog of initial claims in the Wage and Hour Division, but while they were doing that, the backlog of investigations got worse.

In the 2025 session, the Legislature allocated nearly $30 million to BOLI to hire additional staff and better tackle the backlog.

Still, it can take years to resolve serious issues like unpaid wages and civil rights violations. Many Oregonians lack the money to hire an attorney or the ability to navigate a court system on their own, so filing a claim or complaint at BOLI is their only option.

Specifically, auditors found:

1. Management decisions reflected poor planning and strategic neglect. Important decisions, both past and present, are either not documented, not clearly communicated, or lack thorough consideration of consequences. For example, it’s not clear why a prior administration decided to stop completing federally required compliance reviews of apprenticeship programs.
2. BOLI’s failure to properly maintain policies and procedures puts continuity and performance at risk. Frequent leadership changes and turnover may lead to policy reversals and inconsistencies, while the absence of documented policies and procedures makes it difficult for the agency to achieve its goals.
3. The agency’s challenges weaken enforcement of Oregon’s labor and civil rights laws. Agency leadership is limiting services based on its available resources, meaning employers may continue to violate Oregon’s labor laws at the expense of the worker.
4. BOLI’s success depends on clear priorities and aligned workforce. The workload isn’t subsiding any time soon and the agency can’t keep up with demand. BOLI needs to use workforce planning strategies to make sure its deploying resources where they’re most needed.

Auditors had 10 recommendations for BOLI to address foundational organizational tools like strategic planning, policies, and procedures. Auditors recommended BOLI regularly review claim data to identify trends, guide backlog triage, and assess the effectiveness of solutions, as well as recommending BOLI collect, monitor, and publicly report backlog data on their website.

Read the full report on the Secretary of State website.