Conservative think tank asks court to block Oregon union fraud law

By Mia Maldonado (Oregon Capital Chronicle)
Jan. 6, 2026 2 p.m.

Freedom Foundation alleges Oregon’s new law violates First Amendment.

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Oregon State Capitol building, May 18, 2021. The capitol was completed in 1938.

Oregon State Capitol building, May 18, 2021. The capitol was completed in 1938.

Kristyna Wentz-Graff / OPB

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An Olympia-based conservative think tank is suing Oregon over a new law that makes it illegal to impersonate a union representative.

The Freedom Foundation, which says it advocates for public sector employees to understand their rights to opt out of union membership, filed the lawsuit Dec. 31, the day before the law took effect, in the U.S. District Court in Portland. The lawsuit names Oregon Attorney General Dan Rayfield, the Oregon Employment Relations Boards and three of its leadership members and five major unions, including the Service Employees International Union Local 503, Oregon Education Association and Oregon American Federation of State, County and Municipal Employees Council 75.

The Freedom Foundation alleges House Bill 3789, which passed along party lines in both legislative chambers and Gov Tina Kotek signed into law in June, violates the First Amendment by discriminating based on content and viewpoint and targeting political speech.

The law allows union representatives to sue anyone for $6,250 if they can prove an individual falsely impersonated a union representative.

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Several public sector unions supported the law. SEIU Local 503 President Johnny Earl testified in favor of the bill in the spring, saying that third parties have been impersonating union officials and sending misleading information meant to persuade members to drop their membership.

“We cannot comment on this particular lawsuit, as we have not been made aware of its allegations,” SEIU Local 503 spokesperson Pati Urias told the Capital Chronicle. “However, what I can say is that this is likely yet another example of a frivolous lawsuit filed by the so-called Freedom Foundation. In our experience, these lawsuits are just a waste of time and resources by an organization that has no other purpose than to undermine workers’ rights to collectively bargain.”

Oregon AFSCME Executive Director Joe Baessler said the law protects hardworking Oregonians from false union representations.

“Any organization objecting to such a law should probably rethink their tactics and mission if they’re worried about falling out of compliance with such a basic concept as ‘don’t do fraud,’” he said in a statement.

The Freedom Foundation, however, argues its mailings explain to public sector employees how the opt-out process works and that they can save money by opting out of union membership. More than 30,000 Oregon employees have opted out of union membership because of the organization’s mailing campaigns and outreach, according to the Freedom Foundation.

“This law hands unions the power to bankrupt their most effective critic — the Freedom Foundation — through lawsuits,” Eric Stahlfeld said, the Freedom Foundation’s chief litigation counsel. “The First Amendment protects the Foundation’s speech, and we’re confident the court will strike this law down.”

One mailing to Oregon’s public employees equals approximately $1 billion in potential liability for the Freedom Foundation, according to the Freedom Foundation. The think tank is asking the court to block the law from taking effect.

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