Oregon · Legislation Insight

Oregon SB1517: What Liability Waivers Now Mean for Your Business

A buried provision in Oregon's new civil litigation bill fundamentally changes how courts treat signed liability waivers—and it took effect immediately.

Most Oregon business owners operating recreational or fitness activities don't realize that, until recently, signed liability waivers were nearly worthless in court. Oregon courts routinely voided them as contrary to public policy—even when a customer had signed one voluntarily. That changed with SB1517.

What Changed

Section 1(2) of SB1517 makes liability waivers enforceable against ordinary-negligence injury claims. In plain terms: if a customer signs a waiver before using your gym, ski rental, climbing wall, outfitter service, youth sports program, or similar recreational activity, that waiver can now hold up in court when they sue for injuries caused by ordinary negligence.

Before this law, Oregon courts treated such waivers as void on principle. A signed document meant almost nothing. Now it does.

Who This Affects

This applies directly to small and mid-sized businesses offering recreational or fitness services:

If your business involves customers assuming physical risk, this provision directly affects your litigation exposure.

Why It Matters Financially

Litigation is expensive. Defending an injury lawsuit—even one you might win—costs tens of thousands in legal fees. A waiver that actually holds up in court can eliminate that exposure before it starts. It also gives you a stronger negotiating position if a claim does arise, potentially reducing settlement pressure.

The practical effect is lower insurance risk and reduced litigation costs for businesses that properly use waivers.

Important Timing Details

SB1517 included an emergency clause, meaning it took effect immediately upon passage—not on the usual January 1st date. The provision applies to releases executed before, on, or after the effective date, so it covers waivers signed under the old rules too.

The relevant section is Section 1(2), found on Page 1 of the bill.

What You Should Do

If you operate a recreational or fitness business in Oregon, review your current waiver language with an attorney. Not all waivers are created equal, and enforceability depends on specific language and how the waiver is presented to customers. A poorly drafted waiver may still fail to protect you, even under the new law.

Make sure your waivers are clear, specific to your activities, and presented to customers before they participate—not buried in fine print or added after the fact.

This is a material change in Oregon law. If you haven't updated your risk management practices since SB1517 passed, now is the time.

Source: Oregon SB1517, Section 1(2), relating to civil litigation and liability waivers for recreational operators.

Source: SB1517 · Section 1(2), Page 1 · Effective on passage (emergency clause, Section 3, Page 2); applies to releases executed before, on, or after effective · Legislative data via LegiScan (CC BY 4.0), read and summarized by RESignal. Awareness, not legal advice — verify at the source.
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