Mitchell v. BOLI

Court of Appeals of Oregon·Decided May 13, 2026·No. A183925·Published

Opinion

520 May 13, 2026 No. 405

IN THE COURT OF APPEALS OF THE STATE OF OREGON

Todd MITCHELL,

individually, under ORS 659A.030(1)(g), Petitioner,

and

FREHOO, INC.,

dba Stars Cabaret & Steak House, et. al., Respondents Below.

v.

BUREAU OF LABOR AND INDUSTRIES OF THE STATE OF OREGON

Respondent.

Oregon Bureau of Labor and Industries 3716; A183925

Argued and submitted September 22, 2025. Angela Ferrer argued the cause for petitioner. Also on the briefs were Andrew Altschul, Courtney Angeli, and Buchanan Angeli Altschul & Sullivan, LLP.

Jona J. Maukonen, Assistant Attorney General, argued the cause for respondent. Also on the brief were Dan Rayfield, Attorney General, and Benjamin Gutman, Solicitor General.

Before Aoyagi, Presiding Judge, Kamins, Judge, and Pagán, Judge.

KAMINS, J. Reversed and remanded.

Cite as 349 Or App 520 (2026) 521 522 Mitchell v. BOLI

KAMINS, J. Petitioner appeals from a Bureau of Labor and Industries (BOLI) final order determining that petitioner, owner of Frehoo, Inc. (Frehoo), aided and abetted sexual harassment under former ORS 659A.030(1)(g) (2021), renumbered as ORS 659A.030(1)(h) (2025). Petitioner raises two assignments of error. First, he argues that the board erred by determining that he aided and abetted a statutory violation without requiring that he had actual knowledge of the underlying violation. Second, he contends that the board exceeded its authority in holding petitioner jointly and severally liable for the full damage award. We reverse on the first assignment of error, which obviates the need to address the second.

I. BACKGROUND

This case concerns an adult entertainment establishment operated by Frehoo, with shares owned by three primary individual owners, including petitioner. Frehoo hired AP21—a 15-year-old victim of child sex trafficking— as a dancer. During her time working for Frehoo, customers touched her sexually. A bartender working at the club recognized AP2 from a missing persons photo and reported that to a Frehoo manager and petitioner. Petitioner directed the club’s general manager to contact law enforcement immediately . Following an investigation and a proposed order issued by an administrative law judge, BOLI issued a final order determining Frehoo was liable for subjecting AP2 to sex discrimination via the creation of a hostile working environment in violation of ORS 659A.030(1)(b) and that three owners , including petitioner, were liable for aiding and abetting in violation of former ORS 659A.030(g) (2021). Frehoo, Inc. v. BOLI, 319 Or App 548, 550, 510 P3d 888 (2022), rev den, 370 Or 789 (2023). Respondents appealed, and we reversed after determining that BOLI applied a legal standard to impose aider-and-abettor liability that was not found in the statute. Id. at 564-66. On remand, BOLI issued an amended final

1 Consistent with past cases, we refer to complainant as “AP,” which stands for “aggrieved person.” Frehoo, Inc. v. BOLI, 319 Or App 548, 550 n 1, 510 P3d 888 (2022), rev den, 370 Or 789 (2023). The original complaint referred to two aggrieved persons—AP1 and AP2, but only conduct related to AP2 remains at issue. Id.

Cite as 349 Or App 520 (2026) 523

order, again determining that Frehoo was liable for subjecting AP2 to sex discrimination in violation of ORS 659A.030(1)(b). BOLI also determined that, applying the correct statutory language, petitioner, but not the other two owners, was liable for aiding and abetting sexual harassment in violation of former ORS 659A.030(1)(g) (2021) because petitioner was responsible for enforcing Frehoo’s sexual harassment policies and failed to do so, and he should have known that failing to enforce the policies would likely result in sexual harassment. Petitioner appeals from that final order.

In his first assignment of error, petitioner contends that BOLI erred in determining that he aided and abetted unlawful sexual harassment under former ORS 659A.030(1) (g) (2021) because it applied the incorrect legal standard and lacked substantial evidence to support its factual findings.

Former ORS 659A.030(1)(g) (2021) provides that it is unlawful “[f]or any person, whether an employer or an employee, to aid, abet, incite, compel or coerce the doing of any of the acts forbidden under this chapter or to attempt to do so.” Petitioner argues that BOLI incorrectly applied a negligence standard, holding petitioner liable for aiding and abetting because he “should have known” sexual harassment was likely to occur, rather than requiring that he “knew” of any sexual harassment. Petitioner raises a question of statutory interpretation: whether BOLI correctly interpreted the statute’s use of “aid, abet, incite, compel, or coerce” to require that a respondent need not have actual knowledge of the underlying conduct.

II. STANDARD OF REVIEW

We review agency interpretations of law for legal error and their factual findings for substantial evidence. ORS 183.482(8)(a), (c). When reviewing an agency’s interpretation of a statutory provision, we first consider what standard of review, and therefore level of deference, to apply based on whether the term at issue is exact, inexact, or delegative . Coast Security Mortgage Corp. v. Real Estate Agency, 331 Or 348, 353, 15 P3d 29 (2000). “Exact terms” express a precise meaning, and as such, their application involves only agency factfinding, which we review for substantial 524 Mitchell v. BOLI

evidence. Id. “Inexact terms” are “less precise” but still embody “a complete expression of legislative meaning.” Id. at 354. “ ‘Delegative terms’ express incomplete legislative meaning that the agency is authorized to complete,” requiring the agency to make a policy determination. Id. The court reviews the agency’s interpretation of delegative terms to determine if it is “within the range of discretion allowed by the more general policy of the statute.” Id. While we defer to an agency’s interpretation of delegative terms to the extent it is within the range of discretion allowed, an agency’s interpretation of nondelegative terms is not entitled to deference . OR-OSHA v. CBI Services, Inc., 356 Or 577, 585, 341 P3d 701 (2014).

“Aid, abet, incite, compel or coerce” are inexact terms. Although they are not defined in the statute and thus are open to various interpretations, they do not require the agency to make a legislative policy determination. See Blachana, LLC v. BOLI, 354 Or 676, 687, 318 P3d 735 (2014) (considering a term that “embodies a complete [but imprecise] legislative policy” and is “capable of more than one meaning” inexact). Therefore, we review the agency’s interpretation to determine if it is consistent with legislative intent and, in that regard, the agency’s interpretation of the statute is not entitled to deference. Id.; Coast Security Mortgage Corp., 331 Or at 354.

III. STATUTORY CONSTRUCTION In construing an inexact statutory term, we examine the text and context of the statute and, where relevant, the legislative history. State v. Gaines, 346 Or 160, 164, 206 P3d 1042 (2009). We begin by considering how the terms are defined and then consider prior case law, preexisting common law, and comparable statutes. A. Text First, we examine the text. The text provides that it is an unlawful employment practice “[f]or any person, whether an employer or an employee, to aid, abet, incite, compel or coerce the doing of any of the acts forbidden under this chapter or to attempt to do so.” Former ORS 659A.030(1)(g) (2021). Where, as here, there are no relevant statutory definitions,

Cite as 349 Or App 520 (2026) 525

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