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A Marion County Circuit Court judge has struck down Gov. Tina Kotek’s executive order requiring union-friendly project labor agreements.

Judge Thomas Hart ruled from the bench on Thursday that Kotek had exceeded her constitutional authority by effectively requiring project labor agreements be used for large infrastructure projects.

A coalition of contractors and industry groups sued Kotek in February 2025, charging that her executive order, issued in December 2024, unconstitutionally made law without the Legislature. The contractors alleged the rules illegally hindered open-shop firms.

Hart agreed, granting a preliminary injunction in March 2025, preventing the rules from taking effect. Thursday’s ruling is a significant victory for contractors, but Kotek could appeal the decision.

Kotek, in a statement issued on Friday, did not indicate whether she would appeal Hart’s ruling.

鈥淲e’re currently evaluating the court’s oral ruling,鈥� she stated via email. 鈥淚 continue to believe that this was the right policy for the state at the right time. I am resolved to continue to find pathways to encourage fair, living-wage jobs that meet the needs of Oregon families while our state grows.鈥�

Contractors hailed the ruling. Laurie Kendall, interim president and CEO of the Associated Builders and Contractors‘ Pacific Northwest chapter, called the ruling a 鈥渂ig win for merit-shop contractors鈥� in an email to members. She could not immediately be reached for comment.

Kotek’s executive order required project labor agreements to be used for state-funded projects when on-site labor amounts to 15 percent or more of project costs. The agreements, known as PLAs, typically mandate prevailing wages to be paid, but also prevent labor disruptions.

Contractors charge that PLAs raise costs for large-scale projects.

ABC was joined in the lawsuit by the Associated General Contractors‘ Oregon-Columbia chapter, the Northwest Utility Contractors Association, the National Federation of Independent Business, and more than a dozen Oregon contractors.

The plaintiffs were represented by Joshua P. Dennis of Schwabe, Williamson & Wyatt, Angela Otto of Dunn Carney, D. Brent Carpenter of Jordan Ramis and Darien S. Loiselle of Sokol Larkin. The governor was represented by the Oregon Department of Justice.