Basically you will be making an interest free loan to the State of New York. Next year you will file a New York non-resident tax return, and you will receive a full refund of the New York tax withheld (assuming you neither work nor live in New York). Is it legal for you Company to not withhold the proper state tax for you, probably not.
I suggest you fill out an Oregon Form OR-4-W and submit to your company's payroll department along with a letter telling them to stop withholding New York state tax.
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