How the Oregon Workplace Fairness Act Impacts Employee NDAs and Severance Contracts

Workplace culture and employment contracts in Portland, Eugene, and across the state have fundamentally shifted due to Or. Rev. Stat. § 659A.370. This critical legislation restricts how companies can use non-disclosure agreements (NDAs) and non-disparagement clauses when handling allegations of discrimination, harassment, and sexual assault. Employees have strong rights to speak out, and companies must ensure their severance agreements comply with state standards.

Updating your employment contracts is a complex task. We strongly encourage you to use our directory to find a local Oregon employment lawyer who can review and revise your standard agreements, ensuring compliance with the latest state regulations and avoiding costly litigation.

Impact of the Workplace Fairness Act in Oregon

Whether your business operates in Salem or Medford, the Workplace Fairness Act dictates that employers cannot require an employee or prospective employee to sign an agreement that conceals details of discrimination or sexual assault. This law is overseen by agencies like the Oregon Bureau of Labor and Industries, Portland and the Oregon Bureau of Labor and Industries, Salem.

Under Or. Rev. Stat. § 659A.370, a confidentiality clause related to these sensitive issues is only permissible if the employee specifically requests it. Even then, the employee retains a seven-day revocation period to change their mind after signing. This legislative shift aims to prevent systemic abuse and protect workers from being silenced.

Drafting and Updating Employee Contracts

Employers must meticulously review all onboarding and termination documents. Standard boilerplates downloaded from the internet will likely violate Oregon law and expose your company to significant liability.

Drafting Standard Employee NDAs

When drafting general NDAs to protect trade secrets and proprietary information, you must include a clear statutory carve-out. The agreement should explicitly state that nothing in the contract prevents the employee from discussing or disclosing conduct that constitutes sexual assault or unlawful discrimination. Providing employees with the official BOLI Model Policy - Workplace Fairness Act is a standard practice to demonstrate compliance.

Severance Agreement Carve-Outs

Severance agreements are heavily scrutinized under this act. You cannot offer severance pay conditioned upon the departing employee remaining silent about workplace harassment. Any non-disparagement clause must include bold, clear language exempting claims of discrimination, as Or. Rev. Stat. § 659A.370 explicitly renders non-compliant confidentiality provisions void and unenforceable.

Executive Onboarding Contracts

Executive contracts often contain broad confidentiality provisions. In Oregon, these must be carefully tailored. Even highly compensated executives are protected by the Workplace Fairness Act. When drafting these high-level agreements, lawyers must insert the mandatory statutory disclosures detailing the executive's right to report abuses to state agencies without fear of retaliation or breach of contract claims.

How Much Does Contract Review Cost in Oregon?

Ensuring your company policies and contracts are fully compliant with the Workplace Fairness Act requires professional legal review. Here are the typical costs associated with this process in Oregon.

How Long Does the Contract Update Process Take?

A comprehensive review of an employer's NDAs and severance contracts generally takes 2 to 4 weeks, depending on the size of the company and the complexity of the existing agreements. If a dispute arises over an existing contract, investigating a workplace fairness claim through the Bureau of Labor and Industries can take 6 to 12 months before a right-to-sue letter is issued.

Frequently Asked Questions (FAQ)