Oregon Workplace Fairness Act: How It Restricts NDAs in Sexual Harassment Settlements
The Oregon Workplace Fairness Act severely restricts employers from using Nondisclosure Agreements (NDAs) to silence victims of sexual harassment. Under state law, an employer cannot force you into confidentiality unless you, the employee, explicitly request it.
Understanding the Oregon Workplace Fairness Act (OWFA)
For decades, toxic workplace cultures were protected by legal contracts designed to silence victims. Employers often forced employees to sign Nondisclosure Agreements (NDAs) as a condition of receiving a financial settlement, or even as a condition of employment. This allowed serial harassers to remain undetected. To combat this, lawmakers introduced the Oregon Workplace Fairness Act, a groundbreaking piece of legislation aimed at protecting employee voices. Under Or. Rev. Stat. § 659A.370, employers are explicitly barred from requiring employees to sign any agreement that prevents them from discussing conduct that constitutes unlawful discrimination, including sexual assault and sexual harassment. Whether you work in a tech startup in Portland, a winery in the Willamette Valley, or a hospital in Bend, this law applies to all private and public employers across the state.
Exceptions Where NDAs Are Allowed
While the law is designed to protect your right to speak out, there are specific situations where confidentiality clauses are still permitted. The state recognizes that some survivors may actually prefer privacy to move forward with their lives without public scrutiny.
Employee's Right to Request a Nondisclosure Agreement
Under Or. Rev. Stat. § 659A.370(2), an NDA or a non-disparagement agreement can be included in a settlement ONLY if the aggrieved employee actively requests it. The employer cannot initiate the demand for silence as a bargaining chip. If you decide that you want the terms of the settlement, the settlement amount, or the underlying facts of the harassment kept completely confidential, you must notify your attorney or the employer's legal counsel that you are requesting this provision voluntarily.
The Mandatory 7-Day Cooling-Off Period
To ensure that victims are not pressured or coerced into asking for an NDA in the heat of a stressful negotiation, Oregon law enforces a strict cooling-off period. If you request a confidentiality provision, you have a mandatory seven-day revocation window after signing the agreement. During these seven days, you can change your mind, cancel the NDA portion of the contract, and the rest of the settlement will remain legally binding. The agreement does not become fully effective until this seven-day period has completely expired.
How OWFA Affects Settlement Negotiations
The restrictions on NDAs have significantly shifted the balance of power during settlement negotiations in Oregon. Previously, companies would pay a premium solely to buy an employee's silence and protect the corporate brand. Today, settlements focus more on actual compensatory damages, back pay, and emotional distress rather than purchasing secrecy. Employers in cities like Portland, Medford, and Corvallis must now implement comprehensive anti-harassment policies and provide written copies of these policies to employees. When mediating a claim through the Bureau of Labor and Industries, Portland or directly with an employer's HR department, your lawyer can use the employer's inability to force an NDA as leverage. Companies know that if the case goes to a public trial at the Marion County Circuit Court, Salem or another local venue, the details will be fully exposed in the public record.
Severance Agreements vs. Settlements
It is crucial to differentiate between an initial employment contract, a standard severance package, and a legal settlement resolving a formal complaint. The OWFA prohibits employers from embedding no-rehire clauses or blanket NDAs in standard severance agreements if the employee has reported workplace harassment. If your employer hands you a severance document that includes language forbidding you from discussing past sexual misconduct, that specific clause is likely void and unenforceable under Oregon law. If you are ever handed such a document, you should contact a local attorney immediately before signing.
Frequently Asked Questions (FAQ)
Does the OWFA apply to past NDAs signed before the law passed?
The restrictions on NDAs under the Oregon Workplace Fairness Act generally apply to agreements entered into on or after October 1, 2020. Agreements signed before this date may still be legally binding depending on the specific contract language.
Can an employer hide the amount of the settlement?
Only if you, the employee, specifically request a confidentiality clause regarding the settlement amount. Otherwise, the employer cannot force you to keep the financial terms a secret.
What happens if an employer violates the OWFA?
If an employer coerces you into an NDA or retaliates against you for refusing to sign an unlawful confidentiality agreement, you may be entitled to file a civil lawsuit for additional damages and penalties under Oregon statutes.
Where can I find an attorney to review my settlement?
You can use our US Lawyer Directory to find highly qualified employment law attorneys right here in Oregon who can review your severance or settlement agreement to ensure it complies with state laws.
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