A provision in Oregon's new SB1517 fundamentally shifts when liability waivers can protect your business from injury claims.
Most Oregon manufacturers and small business operators don't realize that the state just changed a core rule about liability waivers—and it could affect everything from your insurance costs to your litigation exposure.
Until now, Oregon courts treated waivers that protected businesses from ordinary negligence claims as void against public policy. That meant even if a customer signed a waiver before an injury, Oregon judges would refuse to enforce it if the injury resulted from ordinary negligence—the most common type of claim in personal-injury litigation.
SB1517 changes that. Section 1(2) of the bill now allows operators to enforce liability waivers for ordinary negligence claims, provided the waiver is clearly written and the injured party signed it before the injury occurred.
The provision directly applies to small business operators in activity-based industries: gyms, outfitters, ski areas, climbing gyms, camps, and similar ventures. But the principle extends to any Oregon business that can reasonably ask customers or users to sign a pre-injury release.
If your operation involves any physical activity, equipment use, or inherent risk—even in manufacturing settings where visitors or contractors are present—this change matters.
Ordinary negligence claims represent the largest category of personal-injury litigation. Before SB1517, a signed waiver offered almost no protection against them in Oregon. Now, a properly drafted waiver can shield your business from these claims entirely, assuming the waiver is enforceable under the new law.
The practical impact: reduced litigation exposure, potentially lower insurance premiums, and clearer risk allocation between your business and the people using your services or facilities.
The law is effective immediately upon passage—there is no waiting period. The emergency clause (Section 3, Page 2) means SB1517 took effect as soon as the Governor signed it.
Critically, the provision applies to releases executed before, on, or after the effective date. This means waivers signed under the old law may now be enforceable under the new standard.
However, enforceability still depends on how the waiver is written. A vague or poorly drafted release may not hold up in court even under the new rule. The language must clearly communicate what the signer is waiving and what risks they are assuming.
If your business currently uses liability waivers, review them with legal counsel to ensure they meet the new standard. If you don't have waivers in place and operate in a higher-risk environment, this change may make it worth considering one.
The Oregon Manufacturing & Logistics Council and other trade associations have published detailed guidance on drafting compliant waivers under SB1517. A free, business-specific summary is available through most industry associations.
Source: Oregon SB1517, Section 1(2), Page 1; Section 3, Page 2.