Bill Restoring Exclusive Remedy Workers’ Comp Protections Ready for Governor’s Signature

Today, the Oregon House of Representatives unanimously passed Senate Bill 678 following the bill’s unanimous passage in the Senate. The bill is now on its way to the governor’s desk where it will await his imminent signature.  SB 678 – which restores exclusive remedy workers’ comp protections for members of LLCs – responds to the Court of Appeals’ decision relating to Cortez. Because of the court’s ruling in March 2012, LLC owners and members are not protected from liability under the current statute. The Court of Appeals’ decision to rule in favor of Cortez made it clear that the language needed to be very specific in ORS 656.018 as to who is afforded exclusive remedy protections as an “employer.” Due to the outcome of the Cortez case and the rise of LLCs, AGC’s ultimate goal during the 2013 session has been to identify appropriate language that will cover the spectrum of modern corporate entities, which is contained in SB 678. Today, following months of work, that goal was achieved and, following the governor’s signature, the exclusive remedy protections of workers’ compensation statutes will be extended to partners, limited liability company members, general partners, limited liability partners, and limited partners. For additional information, please contact Government Affairs Director John Rakowitz, 503-317-1781.