Barrett Business Services, Inc. Announces Administrative Penalties

PORTLAND, Ore., April 8 /PRNewswire/ -- Barrett Business Services, Inc.

(Nasdaq: BBSI) announced today that its farm and forest labor contractor

license has been revoked by the State of Oregon through a default judgment.

The license revocation included civil penalties of $488,000. The State's

action is based upon allegations that Barrett violated certain requirements

imposed on farm and forest labor contractors.

The Company had previously disclosed that it had received a notice from

the State outlining certain purported deficiencies primarily related to

written documentation evidencing that the terms and conditions of employment

and workers' rights and remedies had been properly communicated to employees.

The State's assertions prevailed through a default judgment as a result of

the failure by one of the Company's law firms to file a response to the notice

within the prescribed 20-day period.

Commenting on the situation, President and Chief Executive Officer William

W. Sherertz stated that, "We believe the State's allegations are without

merit, and due to an error, we apparently will not have the opportunity to

defend our company and our customers. The State did not allege any

mistreatment or abuse of employees. The fines were levied for the alleged

lack of proper written documentation; it's simply a matter of whether or not

we have the paperwork -- and we do. We will continue to vigorously seek an

equitable resolution."

Barrett Business Services, Inc. is a human resource management company

with offices in Washington, Oregon, Idaho, California, Arizona, Michigan,

Maryland and Delaware. Barrett reported revenues of $215.8 million and net

income of $5.0 million for 1996.
SOURCE Barrett Business Services Inc.
CONTACT: William W. Sherertz, President and Chief Executive Officer of Barrett Business Services Inc., 503-220-0988

Released April 8, 1997