a:\newslw.96 [4]Alan Lee MitchellStephen De'ak201997-03-16T20:58:00Z2006-07-01T22:24:00Z2006-07-01T22:24:00Z111816734 5615790011.8026 FURRER & SCOTT LLCConsider . . .VOL. 6, ISSUE 4 September, 1997Law OfficesFURRER & SCOTT LLC9185 SW BURNHAM ST. POST OFFICE BOX 23414TIGARD, OR 97223 TIGARD, OR 97281(503) 620-4250 -- (800) 334-8986 -- FAX: (503) 620-43151997 LEGISLATIVE UPDATE, PART 1: CONTRACTOR REGISTRATIONThe 1997 Oregon Legislature adopted House Bill 2041 B-Engrossed, which will change the law on what contractors can and cannot do if they are not properly registered with the Oregon Construction Contractors Board ("CCB"). Of particular note to registered contractors is that it will expressly permit contractor to "fix" lapses in their CCB registration if they act in a timely fashion.The bill recognizes four CCB registration situations contractors may be in. Two of the situations have the same outcome. The four situations are:(1). Properly registered when the work was bid, the contract was formed and all of the work was performed. These contractors' rights are not limited by House Bill 2041 B-Engrossed.(2). Never registered when the work was bid, the contract was formed and all of the work was performed and (3). First registered during that time period.These contractors' rights are limited as they must timely apply to become registered and also actually get registered before they proceed with either recording a lien or filing a lawsuit or arbitration. The CCB can set the time period within which to submit a completed CCB registration by administrative rule. The time period, however, cannot exceed 90 days. The registration is not expected to be back dated to cover the entire time period. Again, this is a change in the law. Note that before these contractors can proceed, they must actually become registered.(4). Registration lapsed at some time between when the work was bid, the contract was formed and all of the work was performed and was timely and properly renewed.Unlike the prior law, which generally treated these contractors in the same manner as contractors that were never registered, these contractors can now undertake efforts to correct a lapse in registration. These contractors’ rights are still limited because they must timely apply to renew their registration and actually get their registration renewed to cover the entire time period. There is special rule for construction liens and the lawsuits to foreclose the lien that permits the lapsed contractor to proceed with the exercise of these rights even before its registration has been renewed. Again, this construction lien exception does not apply to contractors who were never registered or were first registered during the required time period. The construction lien exception was adopted because of the limited time periods within which to record and foreclose construction lien claims.The limitations provided by this bill specifically apply to arbitrations as well as construction liens and litigation. The bill applies "to liens perfected and claims commenced on or after January 1, 1998.” A copy of the entire bill is available upon request to Furrer & Scott LLC.Reasons for CCB registrations lapsing include: waiting too late to respond to the CCB (Do not wait until last day -- act promptly!), incomplete renewal applications, failure to get renewal information on a contractor's surety bond or insurance policies to the CCB in a timely fashion and not keeping the CCB advised of your current address. It is well worth the effort to confirm the date your CCB registration will lapse directly with the CCB and then calendared out your own file for 60 days prior to the expiration date -- do not simply rely on the CCB to remind you of the need to renew your registration, bond or insurance.PAYING WAGES TO INTERNSUsing unpaid interns can turn out to be a costly proposition.Normally, interns are not considered employees and are therefore exempt from the minimum wage provisions of the federal Fair Labor Standards Act. However, the U.S. Department of Labor has recently imposed serious sanctions on some companies who had been utilizing interns.At issue is whether the company derives any “immediate advantage” from the interns. If the purpose and effect of the intern training is for the benefit and learning experience of the intern, then the employer may not have to pay wages. If not, then the employer may be liable for back wages.There is no clear test. Some relevant, but not conclusive, factors include the following:Were any regular worker positions displaced by the use of unpaid interns?Was the training for the intern’s benefit?Is the intern entitled to a job at the end of the training program?Is there an understanding that the intern will not be entitled to wages during the training period?The conclusion is that companies should be very careful when utilizing interns. Make sure that the terms and conditions of the intern program are clearly spelled out before the intern begins working.GARNISHING SOLDIERS’ WAGESAs you may know, garnishing a person’s wages can be as simple as asking us to send a writ of continuing garnishment to the person’s employer.The process works the same even if the person is in the military or is a civilian defense worker. However, a garnishment writ served on soldiers or civilian defense workers is now significantly more expensive.Under a new law that went into effect on November 1, 1996, each garnishment order sent to the Defense Department will now cost the creditor a $75.00 “administrative fee.”And, in case you may be thinking ahead, the Department has already taken the position that this fee may not be added onto the amount of the debt.CORRECTIONThe last issue of Consider, contained incorrect information that the Construction Contractors Board new rules regarding use of registration numbers had an August 1, 1997 deadline.The correct information is that the rules went into effect immediately for all contractors registering after September 1, 1996. Contractors who registered prior to that date have until the earlier of January 1, 1998 or whenever they next purchase any of the applicable items.In addition, the Board recently deleted the portion of the rule requiring registration numbers to be printed on motor vehicles. This is encouraged, but voluntary. Thank you to Kathleen Howlett, Information/Education Director for the Board for pointing out these corrections.FIRM NEWS:PATRICK J. FURER is now focusing his practice on areas of interest to small businesses including issues related to business formation and maintenance as well as business sales and acquisition. This includes estate planning issues unique to closely-held businesses. While Pat intends to serve as an arbitrator and mediator in domestic relations matters, he will not be acting as an advocate for new individual clients in this area. Pat has, however, numerous contacts among the domestic relations bar and can provide referrals to other attorneys who continue to practice in this area.MICHAEL J. SCOTT spoke on Oregon construction law for design professionals at a July 18, 1997 seminar in Portland for the Lorman Education Services. Alan L. Mitchell and Aaron R. Blankenship assisted in preparing the materials for this seminar.RANDOM THOUGHTS:“Law school has been described as a place for the accumulation of learning. First-year students bring some in; third-year students take none away. Hence it accumulates.” Daniel R. WhiteThis newsletter is published quarterly by the law firm of Furrer & Scott LLC for the benefit of its clients and friends and is intended to inform them about legal matters of current interest. This information is not intended to be, and should not be considered to be, legal advice. No actions should be undertaken in reliance hereon without professional legal counsel.Alan L. Mitchell, Editor