A buried provision in Oregon's SB1517 changes the enforceability of liability waivers—and it affects more businesses than you might think.
Most Oregon manufacturing and business owners don't realize that a provision tucked into SB1517 fundamentally changes how liability waivers work in the state. If your company operates any recreational activity—whether that's an on-site gym, a guiding service, a sports facility, or even team-building activities—this change matters to your bottom line and your legal exposure.
Before SB1517, Oregon courts could void liability waivers as "unconscionable" or contrary to public policy, even when a participant signed one before an injury. This meant a waiver you had someone sign might not actually protect you in court.
Under Section 1(2) of SB1517, liability waivers for recreational activities are now enforceable against claims of ordinary negligence. That means if a participant signed a waiver before getting hurt, and the injury resulted from ordinary negligence (not gross negligence, willful misconduct, or violation of law), the court will enforce that waiver instead of striking it down.
This applies directly to businesses operating:
If your company offers any of these, or similar recreational activities to employees or the public, SB1517 gives your liability waivers real legal weight.
An enforceable waiver reduces litigation exposure. Fewer cases proceed to trial when a signed waiver is legally solid. That can lower defense costs and potentially reduce insurance premiums—though you should confirm with your carrier how they view the change.
The protection is limited: it covers ordinary negligence only. Gross negligence, willful misconduct, or violations of law are not covered by the waiver. You still have liability exposure in those scenarios.
The waiver must be clear and actually signed (or otherwise agreed to) before the injury occurs. A vague or buried waiver won't hold up better than before.
SB1517 became effective on passage, with an emergency clause (Section 3, Page 2). The waiver protection applies to releases executed before, on, or after the effective date—meaning it covers waivers you've already collected and ones you collect going forward.
If your business operates recreational activities, review your current liability waivers with legal counsel to ensure they're clear, specific to your activity, and properly documented. The change is favorable, but only if your waivers are drafted to take advantage of it.
If you're considering adding a recreational component to your business, the legal landscape is now more favorable to doing so with appropriate protections in place.
For a detailed, business-specific summary of SB1517 and how it applies to your operations, consult your attorney or local business association.